News
The Right Approach to Credit Will Grow, Not Harm, Your Business
Imagine this: Mr. Okeke runs a small grocery store in the bustling city of Lagos, Nigeria. He has been in business for several years, and his shop is an integral part of the local community. Yet, like many small business owners in the informal sector, Mr. Okeke faces a significant hurdle: accessing credit to grow his business.
Kevwe Onokerhoraye, Head, Product Strategy, OnePipe
For many, credit can seem like a double-edged sword, promising growth on one hand, but harboring the risk of debt on the other. However, with the right approach, credit can be a powerful tool that propels a business forward without causing financial harm.
The first step towards a healthy relationship with credit is understanding its role. Credit is not just a financial instrument; it’s a growth enabler. It can help businesses invest in new equipment, expand product lines, and even open new locations. Credit can also help businesses manage their cash flow more effectively, ensuring they can meet their obligations even during quieter periods.
However, the key to leveraging credit effectively lies in accessing it responsibly. This means understanding your business’s financial situation and borrowing within your means. Responsible borrowing involves being aware of the interest rates, repayment terms, and potential penalties associated with a credit facility. It also means making sure that the credit is used for productive purposes that will generate returns and enable the business to repay the borrowed funds.
In Nigeria, a significant barrier to accessing credit is a lack of a formal financial track record, especially for small businesses operating in the informal sector. Traditional financial institutions often require a history of financial transactions and collateral, which many small business owners cannot provide.
Fortunately, the financial landscape in Nigeria is evolving. A new generation of financial technology firms is developing solutions designed to increase the accessibility of credit. These solutions leverage technology to assess creditworthiness in innovative ways, such as analyzing transaction data from mobile money platforms or using alternative forms of collateral.
This evolution in the financial sector represents a significant opportunity for small businesses. By leveraging these new sources of credit, businesses can overcome traditional barriers to finance and unlock new growth opportunities. However, it’s crucial that businesses approach this opportunity with a clear understanding of their financial capacity and a plan for how they will use and repay the borrowed funds.
Another critical aspect of a healthy approach to credit is financial education. Small business owners must understand the terms and conditions associated with the credit they access. This understanding allows them to make informed decisions and avoid potential pitfalls. Financial education can also help businesses understand the wider financial landscape, including the range of credit options available to them and how to compare these options effectively.
Credit can also be a tool for resilience. In times of uncertainty, such as during a pandemic or economic downturn, access to credit can help businesses weather the storm. It can provide the necessary funds to keep operations running, pay employees, and even pivot the business model to adapt to changing market conditions. This kind of flexibility can be crucial for survival in challenging times.
In conclusion, credit is a powerful tool that, when used responsibly, can drive growth and resilience for small businesses. The key lies in approaching credit with understanding, responsibility, and a clear plan for how it will be used to generate growth. As the financial landscape in Nigeria continues to evolve, businesses like Mr. Okeke’s grocery store has an unprecedented opportunity to leverage credit as a catalyst for their growth journey.
However, the right approach to credit is not just about individual businesses; it’s about building a more inclusive and resilient financial system that benefits everyone. By democratizing access to credit and promoting responsible borrowing, we can empower businesses to grow, innovate, and contribute to the economic development of Nigeria.
This Evolution brings us closer to a future where every business, no matter how small, has the financial tools it needs to thrive. Thus, adopting the right approach to credit is not just about enhancing the growth of an individual business, it’s about contributing to the growth and resilience of the entire economy.
For Mr. Okeke and countless other small business owners in Nigeria, the right approach to credit could be a transformative force. It could help them turn their business aspirations into reality, bring prosperity to their communities, and contribute to Nigeria’s economic development.
The journey towards financial inclusion and empowerment is a challenging one, but with the right tools and approaches, businesses can navigate it successfully and reap the rewards.
Google and UpSkill Universe, Sub-Saharan Africa’s leading AI and business skills training partner, have announced a major redesign of the Google Hustle Academy programme.
For the first time, the free training initiative is open to everyone, not just business owners. The new curriculum is focused on equipping individuals and entrepreneurs with practical AI skills.
Small businesses are the engine of Africa’s economy, creating over 80% of jobs on the continent. To help them grow, the Hustle Academy was launched in 2022, providing bootcamp-style training on business strategy, digital skills, AI, and leadership. The program has since trained over 18,000 SMEs, with many reporting increased revenue and job creation.
Now, as AI reshapes the job market, the program is evolving. The 2026 edition is built for anyone in Sub-Saharan Africa, including employees, students, and jobseekers, who wants to use AI to advance their career.
To meet the needs of a diverse audience, the new format includes short, 60-minute webinars and more immersive, high-impact bootcamps. These sessions are laser-focused on putting AI to work immediately in areas like digital commerce, marketing, and growth strategy.
Speaking about the academy, Gori Yahaya, Founder & CEO UpSkill Universe said “The 2026 Hustle Academy is designed to close the AI Skills gap with hands-on training that is short, focused, and immediately useful. AI is reshaping how businesses win and how careers are built, right across this continent.
“We’re excited to renew our partnership, now in its fifth year with Google, combining their global AI leadership with our deep regional AI expertise. The next wave of AI leaders will come from this continent. We are making sure they are ready.”
The Hustle Academy initiative has strengthened digital competitiveness across emerging African economies by enabling SMEs to move beyond AI awareness to practical implementation, positioning them for sustained growth in an increasingly AI-driven business environment.
“We believe that the future of Africa’s digital economy lies in the hands of individuals and entrepreneurs alike. Our new strategy focuses on scaling reach by training individuals in the latest AI-centered tools and techniques,” said a Google representative.
Lagos State has dragged 45 individuals and firms, including Bi-Courtney Aviation, DAAR Communications and Leaders & Company, to revenue court for tax debts running into billions of naira.
Lagos Govt
Bi-Courtney, operators of Murtala Muhammed Airport Terminal Two, faces N38.7 million claim; DAAR, behind Africa Independent Television, owes N22.4 million; ThisDay publishers Leaders & Company allegedly skip N67.1 million.
GMT Energy Resources tops corporates at N145.8 million, followed by Sheriff Deputies at N132.1 million; others like Heyden Petroleum, AA Rescue, BRT operator Primero also listed.
Individuals owe N13.5 million to N35 million each.
Attorney-General Lawal Pedro said suits followed ignored notices, aiming to enforce laws and fund infrastructure.
More defendants: IENG Nigeria, James Fisher, V Care Diagnostics, Venture Garden, Saro Africa, Barry Callebaut, Native Media, First Consulting, Eyowo Payments.
Compliant taxpayers post-notice escaped prosecution; defaulters risk penalties, interest, jail.
Pedro urged prompt filings and payments.
National Agency for Food and Drug Administration and Control (NAFDAC) has alerted Nigerians on counterfeit and unregistered Cerelac Mixed Fruits and Wheat products being sold in Lagos.
NAFDAC said Nestle Nigeria, the genuine Marketing Authorisation Holder of the product, received a complaint of suspected counterfeit purportedly manufactured by Nestlé Spain, bearing Batch Code 308002910.
It said that Nestle Nigeria reported that the complainant described that the counterfeit product emitted an odour suggestive of possible contact with fuel.
NAFDAC said that preliminary review of the product by Nestle Nigeria indicated that it had expired, in spite of the container displaying an expiry date of 10-2026, which suggested that the date coding had been tampered with (revalidated).
Nestle Cerelac Mixed Fruits and Wheat is a nutritious infant cereal, designed to be a delicious first food for infants.
NAFDAC said that its post-marketing surveillance’s directorate officers in Lagos conducted a surveillance visit to Maxland Shopping Centre, 193 Ago Palace, Okota, where the product was purchased by the complainant.
It added that the suspected counterfeit and unregistered Cerelac were found on sale at the premises and subsequently mopped up, while Nestle assisted in identifying the distinguishing features between registered and unregistered product.
According to the regulatory agency, Nestle revealed that the unregistered product used a hyphen (-) to separate the day from the year, while the registered product used a slash (/) to separate the day from the year.
“It is important to note that Nestle Nigeria is not aware of the channels through which the products are supplied into the country.
“Healthcare professionals and consumers are advised to report any suspicion of the sale of substandard and falsified regulated products to the nearest NAFDAC office, call 0800-162-3322, or send an email to [email protected],” NAFDAC said.
The agency warned that counterfeit formula often lacked essential nutrients, vitamins and minerals, leading to stunted growth or developmental issues.
It said that such formula might also contain contaminants that might lead to severe health consequences to infants or even death.
NAFDAC reiterated its commitment to safeguarding public health adding that it would continue surveillance activities to ensure the quality, safety, and efficacy of all NAFDAC-regulated products circulating in Nigeria.
It said that all zonal directors of the agency and state coordinators had been directed to carry out surveillance and mop up the revalidated product, if found within the zones and states.
The agency urged distributors, retailers, healthcare professionals, and caregivers to exercise caution and vigilance within the supply chain, to avoid the distribution, sale, and use of fake products.
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