Via hackathon, firms move to better MSMEs

The huge Micro Small and Medium Enterprise (MSME) financing gap that exists in Nigeria would soon be bridged, with the announcement of an innovative virtual hackathon challenge tagged: “MSME Finance… Breaking Barriers,” a collaboration between Enhancing Financial Innovation and Access (EFInA) and GIZ. 

The event is aimed at addressing some of the major challenges inhibiting micro-businesses from accessing formal credit in Nigeria.

Registration for the virtual programme begins today, July 8, and closes on August 1, and is open to adult innovative and creative individuals.

In a statement issued in Lagos, Chief Executive Officer, EFInA, Owolabi Isaiah, said: “We are excited to introduce the virtual Ideathon & Hackathon challenge tagged: MSME Finance… Breaking Barriers. Despite the proliferation of credit providers in Nigeria – both regulated and non-regulated – the financing gap for MSMEs has widened due to several issues like inability to fulfil requirements (financial records, collateral), manual/rigid credit reporting system, high default rate, manual KYC verification process, lack of financial management skills and lack of market linkages, among others. Therefore, it has become imperative to facilitate an inclusive financial system that seamlessly avails credit to MSMEs irrespective of their sizes of operations, categories and availability of traditional collateral requirements to boost the economy, reduce poverty levels and provide job opportunities.”