General News
50% of SMEs in Nigeria were Unable to Provide Consistent income to Workers – New Small Firm Diaries Research

Financial Access Initiative (FAI) research center of New York University (NYU) together with the Nigerian National Bureau of Statistics (NBS) this week released the results of the Nigeria Small Firm Diaries (SFD) study. Supported by the Mastercard Center for Inclusive Growth (CFIG), the Bill & Melinda Gates Foundation (BMGF), and the Argidius Foundation, the global research project provides insight into the financial lives of small businesses in seven countries across Latin America, Sub-Saharan Africa and Asia.

Participants at the Small Firm Diaries Nigeria Research report launch at the Lagos Business School on Tuesday, 25th July 2023.
Results from the Nigeria study
In Nigeria, the study collected data from 161 small businesses in urban, suburban, or semi-rural areas surrounding three locations: Enugu, Kaduna, and Lagos, between August 2021 and August 2022. The study was focused on three industries—light manufacturing, agri-processing, and services—which all play a key role in Nigeria’s economic growth and development.
The study found that the Nigerian firms earn less than firms in the other countries studied. Half of the firms earned less than NGN 223,250 in monthly revenue (PPP USD 1,547) 1 . About half (46%) of the Nigerian firms reported holding a loan of any kind, most of these from informal sources, including suppliers, friends, and family. The research also concentrated on the welfare of employees in small firms, finding that the firms were not able to provide consistent income to workers.
Insights from the research illuminate how small businesses in Nigeria are faring when it comes to: 1 World Bank PPP Rates, NGN/PPP = 152.57
Volatility: The Nigerian small firms, like those in the other countries studied, experience volatile earnings: both revenue and expenses fluctuate from month-to-month.
Desire for growth and stability: When asked about their vision for their business, a large group of Nigerian firms (44%) said they wanted to both grow and gain stability. This population aspires to grow, but does not want to take on the additional risk (they already face a great deal of risk—for instance: fluctuations in demand, rising input prices, supply chain delays, employee issues) that is necessary for rapid growth. They want step-by-step growth that helps reduce volatility and risk.
Financial inclusion: Compared with other countries in the study, Nigerian firms have high rates of bank account ownership: 97% of small firm owners in Nigeria have bank accounts for business—more than in Kenya (79%), Colombia (70%), or Indonesia (65%). However, usage of accounts is less comprehensive, with only 20% of Nigerian firms moving more than three quarters of their transactions through bank accounts. Cash is still the dominant mode of transaction for this segment.
Digital financial services: Nigerian small firm owners use technology — three-quarters use either a smartphone or computer, or both for their business — as well as digital financial services, particularly debit cards, mobile banking, and ATMs. However, they use mobile wallets for business purposes at very low rates.
Credit gaps: Data from the study shows that working capital and liquidity are bigger needs to small firms than investment capital. Despite access to finance being a major barrier to firm owners’ vision for success, more than 40% of firm owners in Nigeria say they “rarely” or “never” need a loan, indicating that products in the market are not accessible or don’t meet their needs. Firms closely match revenues and expenses on a month-to-month basis, which also helps confirm that they lack working capital for day-to-day liquidity needs. Firms rarely take on any operating risk or expansion/growth opportunities that could result in negative monthly cash flow.
Job security: Employment at small firms is precarious. The number of jobs in a firm changes from month to month, and the individuals filling those jobs change frequently. Employee pay varies considerably even during the months they are working at a small firm. Only one-fifth of the small firm employees received their salaries continuously through the study; more than half of employees worked at the same firm for fewer than half of the months studied.
Employee welfare: Some 63% of employees in Nigeria reported difficulties with finances indicative of low-income status, including 51% who reported that a child in their household had not eaten enough in the past week. Both of these figures were higher in Nigeria compared to global sample averages.
In general, the study concluded that stability and growth is a priority for the entrepreneurs who participated in the year-long study. According to the research, these firms face high volatility in income and expenses. They cited “access to finance,” followed by “rising supply costs” as major barriers to achieving their vision of growth and stability.
About the Small Firm Diaries study
The Small Firm Diaries is a global research project conducted between 2021 and 2023 in seven countries: Kenya, Nigeria, Uganda, Ethiopia, Indonesia, Fiji and Colombia. The study aims to improve the understanding of how small businesses can overcome the barriers they face to prosper in the modern economy and contribute to reducing poverty.
In each country, a team of field researchers visited a sample of small business owners in low-income neighborhoods weekly for one full year to collect quantitative and qualitative data on their financial flows. This information sheds light on the economic decision-making, strategies, and constraints of small businesses as they navigate the effects of changes in local and global markets.
The Financial Access Initiative (FAI) research center of New York University, together with partners at the National Bureau of Statistics and the Lagos Business School, anticipate that study results will inform the design of future development policies, financial services and tools to help small businesses and their employees in Nigeria to prosper.
“As the premier agency for the collection, publication, and dissemination of official statistics on Nigeria, NBS was proud to collaborate with the international research team for the Small Firm Diaries project. This study is unique in Nigeria—it is the first large-scale project to gather high-frequency data from businesses of this size—and will allow policymakers to better understand and address the challenges facing these businesses,” said Statistician General Adeyemi Adeniran of the National Bureau of Statistics.
“At the Lagos Business School, we develop the next generation of business owners in Nigeria and Africa. This kind of data, which shines a light on the volatility facing small businesses and their working capital needs, is what we need to inform both government and private sector players who seek to develop policies, products, and services that reduce inequality and increase financial security amongst financially underserved communities,’ said Olayinka David-West, Associate Dean and Professor of Information Systems at the Lagos Business School.
“Small businesses have proved their resiliency in recent years, but still face many pressures to remain profitable. In our work to empower them across the globe as drivers of economic activity and growth, research like this is incredibly insightful. Knowing precisely what challenges small business owners are facing and how they see the future allows us to provide better and more tailored support, and ultimately, better and more meaningful outcomes. We’re proud to support this research, and we hope it can serve as a resource to small business support organizations in the public, private, and social sectors,” said Tania Kruger, Vice President and Head of SME Product & Commercialization, EEMEA at Mastercard.
“MSMEs are by far the biggest employer in low and middle-income economies. Despite decades of statistical research, fundamental questions remain about why some grow, and some stagnate. Our aim with this study has been to try to understand small firms from the bottom-up, by listening closely to how entrepreneurs and workers make choices on their own terms,” said Jonathan Morduch, Executive Director of the Financial Access Initiative and Professor of Public Policy and Economics at New York University.
“We hope the findings from the Small Firm Diaries will be used by others in their own research and initiatives to address the challenges facing small businesses in low- and middle-income communities in Nigeria, and around the world,” said Michelle Kempis, Associate Director of the Financial Access Initiative at New York University.
Uses and application of the study
The reports presented today—the Nigeria Country Data Overview and the Financial Services Report—will be followed by additional analysis and publications in the coming months. The research team will continue to analyze data and publish reports on the Nigerian small firms, including adding further global comparisons, as they seek to collaborate with partners in the public and private sectors to benefit small businesses in Nigeria.
The study aims to guide the policies and practices of a wide variety of players and stakeholders, and study results enable companies and governments to design or improve products and programs that increase the capacity and productivity of small businesses. It will also enable organizations to design financial services products, including digital financial services, that better meet the liquidity and investment needs of small businesses so that they can expand their businesses in terms of income, productivity, employment, and wages paid.
General News
UBA Debunks Viral Divorce Claim against Elumelus, Suspects in Custody

United Bank for Africa (UBA) Group has dismissed as false and malicious reports circulating on social media alleging that Mr Tony Elumelu, its croup chairman, has divorced his wife, describing the claims as defamatory and deliberately fabricated to tarnish his reputation.

UBA
In a formal notice issued on Sunday, the bank said the publication and similar related content were entirely baseless, reckless, and designed to mislead the public while causing reputational damage to Elumelu and the UBA brand.
According to the statement signed by Mrs Alero Ladipo, Group Head, Brand, Marketing and Corporate Communication, the matter has been reported to relevant law enforcement authorities, which have already commenced investigations into the source and spread of the claims.
The bank disclosed that three individuals allegedly linked to the creation and dissemination of the publication had been arrested. They were identified as Mr Kingsley Akunemeihe, also known as @Directorkem; Mr Chigozie Success Ihebom; and Mr John Surpruchi Nwanorue, known on social media as @problemchimky.
UBA said investigations were ongoing and could result in additional arrests and prosecutions of other individuals connected to originating, amplifying, or sustaining the false publication.
The financial institution issued a cease-and-desist notice to all persons, platforms, and entities involved in publishing or reposting the claims, directing them to immediately remove the content from all platforms and refrain from further dissemination.
It also instructed all affected parties to preserve records, including digital footprints, communications, and metadata linked to the creation and spread of the publication, pending possible legal action.
The bank warned that failure to comply with the directive would lead to legal proceedings, including defamation suits, claims for damages, injunctive relief, and other remedies available under applicable laws.
“UBA Group is resolute in protecting the reputation, privacy, and integrity of our brand and that of Mr Elumelu, and will pursue all necessary legal avenues, civil and criminal, to ensure all responsible parties are identified and held accountable,” the statement said.
The bank urged the public to disregard the false reports and rely only on verified information from official channels.
General News
NITDA Partners Galaxy Backbone to Deliver Subsidised Cloud Services to Startups

National Information Technology Development Agency (NITDA), through its Office for Nigerian Digital Innovation (ONDI), has entered into a strategic partnership with Galaxy Backbone Limited (GBB) to provide subsidised sovereign cloud services for startups participating in the iHatch programme.

NITDA
The collaboration is aimed at strengthening Nigeria’s digital ecosystem by improving access to critical digital infrastructure, promoting indigenous innovation, supporting data sovereignty and expanding digital inclusion.
The development was disclosed in separate statements issued by NITDA and Galaxy Backbone.
Under the arrangement, startups enrolled in the iHatch programme will be onboarded onto the Galaxy Cloud Platform (GxCP), GBB’s sovereign cloud infrastructure built on Uptime-certified Tier III and Tier IV data centres, a nationwide fibre network and advanced cybersecurity architecture.
According to the agencies, the initiative is designed to reduce infrastructure barriers facing early-stage businesses by providing access to secure enterprise-grade cloud resources at subsidised rates.
Director-General of NITDA, Mr Kashifu Inuwa Abdullahi, described the partnership as a strategic intervention to strengthen the resilience and global competitiveness of Nigeria’s startup ecosystem.
Abdullahi said access to reliable digital infrastructure remained one of the most critical enablers for startups seeking to innovate, scale and compete internationally.
He noted that the collaboration aligns with NITDA’s broader digital economy agenda, particularly in building local technology capacity and reducing dependence on foreign infrastructure.
“This partnership reinforces our commitment to nurturing a resilient and globally competitive startup ecosystem by ensuring innovators have access to the infrastructure required to build sustainable businesses,” he said.
Managing Director and Chief Executive Officer of Galaxy Backbone, Prof. Ibrahim Adeyanju, said the initiative would empower startups with access to secure, enterprise-grade cloud infrastructure while enabling them to host their data locally within Nigeria.
According to him, hosting data locally is critical to strengthening Nigeria’s digital sovereignty, improving compliance and enhancing economic resilience.
Adeyanju explained that to ensure sustainability and long-term impact, GBB would deploy a tiered, milestone-based support model aligned with the development stages of startups.
He said cloud credits would be released in phases across three stages of startup growth — Build, Validate and Scale.
The credits, he said, would remain valid for 12 months, after which beneficiaries would transition to either standard subscription plans or pay-as-you-go billing options.
“This model ensures startups receive support at the stages where they need it most, while also encouraging efficient resource management and long-term business sustainability,” he said.
Adeyanju added that Galaxy Backbone would establish a dedicated Startup Success Team to guide participating startups through onboarding and encourage platform adoption.
He said the initiative would also include automated usage monitoring and alerts to help startups optimise resource utilisation and avoid operational inefficiencies.
In a move aimed at protecting startups from exchange rate volatility, he disclosed that all post-credit billing under the scheme would be denominated in naira.
General Manager, Strategic Partnerships at GBB, Mr Abdul Malik Suleiman, described the partnership as a deliberate intervention to bridge the infrastructure gap confronting Nigerian innovators.
Suleiman said making world-class cloud services more accessible to local startups would significantly lower entry barriers for innovation-driven businesses.
Also speaking, National Coordinator of ONDI, Ms Victoria Fabunmi, said integrating Galaxy Backbone’s sovereign cloud platform into the iHatch programme would strengthen startups’ ability to transition from ideation to commercial scale.
Fabunmi noted that access to the right digital tools and infrastructure was crucial to helping startups compete effectively in both local and global markets.
She said the iHatch programme, which is supported by NITDA through ONDI, had already trained over 160 startups across 37 hub partners nationwide.
According to her, the partnership with GBB is expected to deepen the programme’s impact by accelerating innovation, enabling startup growth and strengthening Nigeria’s broader digital economy.
Industry stakeholders say the initiative reflects growing efforts by government institutions to provide local alternatives to foreign digital infrastructure while reducing operational costs for Nigerian startups.
They also note that the partnership could improve confidence among innovators and investors by strengthening Nigeria’s cloud ecosystem and encouraging local data hosting.
The agencies expressed optimism that the collaboration would unlock new growth opportunities for startups and further position Nigeria as a leading innovation hub on the continent.
General News
US to Deny Applicants Saying they Fear Persecution @ Home Visas

United States has introduced further restrictions on potential asylum seekers by requiring US visa applicants to confirm they do not fear persecution in their home countries.

Donald Trump administration’s goal is to prevent individuals from using non-immigrant visas as a means to claim asylum once they reach US soil.
According to a diplomatic notice sent to all embassies and consulates this week, applicants for non-immigrant visas, including tourists, students, and temporary workers, must now affirm their safety at home to be eligible for entry.
This move is part of a broader shift in policies designed to tighten US immigration controls.
New screening procedures
Consular officers have been instructed to ask two specific questions during the application process:
“Have you experienced harm or mistreatment in your country of nationality or last habitual residence?”
“Do you fear harm or mistreatment in returning to your country of nationality or permanent residence?”
“Visa applicants must respond verbally with a ‘no’ to both questions for the consular officer to continue with visa issuance.”
The statement notes, “Consular officers must prevent abuse of the immigration system by visa applicants who misrepresent their purpose of travel, including those who attempt to obtain nonimmigrant visas for the purpose of claiming asylum upon arrival in the United States.”
A State Department spokesperson defended the measure, stating: “Consular officers are the first line of defence for US national security.
The department uses all available tools and resources to determine whether each visa applicant qualifies under US law”.
To qualify for asylum under current law, an individual must be physically present in the US and be fleeing persecution based on race, religion, or political affiliation.
However, immigration experts warn that these new requirements may force vulnerable individuals into dangerous situations.
Camille Mackler, an immigration policy consultant, told CNN that the directive “is going to put people in really bad, terrible positions of having to make choices that ultimately affect their and their family’s safety.”
She added: “I also think this pushes people to unsafer pathways and unsafer routes, because if you need to leave, you leave, and you do whatever you need to do to do that.”
The rule follows other recent measures, including increased vetting for student visas and a temporary suspension of immigrant visa processing for 75 countries earlier this year.
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