Accion MfB seeks data-driven, value-chain financing for MSMEs’ growth

With Micro, Small, and Medium Enterprises (MSMEs) role in Nigeria’s economic stability and growth prospects, financial experts are now calling for a radical, digital-first strategy for capital provision.

This position was expressed at the Financial Inclusion Seminar 2025, convened by Accion Microfinance Bank (MfB) under the theme: “Unlocking MSME Value Chain to Drive Growth and Prosperity: The Evolving Role of Financial Institutions.” Experts asserted that the current volatility and historical limitations mandate a strategic overhaul.

According to the experts, financial institutions must transition from being mere credit suppliers to becoming ecosystem architects and value-chain enablers for MSMEs, stressing that to safeguard this vital sector that contributes nearly 48 percent of the nation’s GDP and employs over 84 percent of the workforce, the financial industry must abandon its rigid reliance on physical assets and embrace integrated, data-driven lending models.

Speaking on the structural barriers limiting MSME access to finance, Managing Director/CEO, Accion Microfinance Bank, Taiwo Joda, said credit assessment models must reflect how small businesses actually operate rather than depend on physical assets many do not possess.

He highlighted the necessity of using non-traditional metrics: “Crucial non-traditional data include sales and cash-flow records, mobile money and POS transactions, supplier and buyer payment histories, inventory turnover, online reviews or ratings, and utility or telecom payments. These reflect real business performance and reliability, allowing lenders to assess creditworthiness without relying on physical assets.”

He explained the concept of embedding finance: “Embedding financial services into value chains lets Accion reach SMEs where they already operate suppliers, distributors, or marketplaces, so lending, payments, and insurance become part of daily business activities. This bypasses the need for formal branches or heavy documentation, capturing MSMEs that traditional banks often overlook.”

According to Joda, “Accion is planning to deploy an MSME finance product that can be accessed through a web portal or App. This product will allow MSME businesses to gain access to finance through a self-service digital channel from the comfort of their business locations.”

He further clarified the marketplace element: “The platform will include a marketplace comprising the suppliers, manufacturers, and retailers to engender market interaction and payment settlements.”

Speaking at the event, Chief Digital Officer, Accion MfB, Paul Ehiagbonare, said this year’s seminar focused squarely on unlocking the MSME value chain, an area he described as a urgent national priority that determines whether small businesses survive, scale or collapse.

According to him, microfinance institutions must now evolve from being lenders to becoming enablers, embedding credit directly into business ecosystems and deploying technology, partnerships and alternative data to close the financing gap.

Ehiagbonare, explained that modern MSME financing should be built around value-chain structures in which nobody suffers, citing invoice-discounting models that allow micro-enterprises to fulfill large corporate orders without waiting out 45-day payment cycles.

He added that established dealer-supplier relationships already offer natural assurances that lenders can leverage without demanding land titles or heavy documentation.

He spoke about the use of telco-level behavioural data, home addresses, movement patterns, POS footprints and mobile-money activities, to determine creditworthiness.

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According to him, Accion MFB is already working with MTN and other telcos whose data infrastructure captures the real behaviour of MSMEs who lack bank statements or formal records.

“These data points, where they trade, whether they frequently visit lending apps or financial locations. It helps us know who is stable, who is scaling and who is likely to default,” he said.

This year’s seminar will spotlight on the evolving role of financial institutions in enabling MSME value chains, innovative and inclusive financing models that go beyond collateral, the power of partnerships, data, and technology in scaling impact and actionable pathways for building resilient, competitive MSME ecosystems.

Also, through dialogue, case studies, and strategic partnerships, the seminar will explore how financial institutions can serve as catalysts for value-chain-driven inclusion, unlocking prosperity across Nigeria’s real economy.

For other stakeholders, while the past decade has seen significant progress in digital transformation and inclusion, the next frontier lies in how financial institutions evolve beyond traditional lending to become value-chain enablers, fostering collaboration, innovation, and sustainable prosperity across the MSME landscape.