Lagos Chamber of Commerce and Afreximbank Join Forces to Boost Nigerian SMEs

The Lagos Chamber of Commerce and Industry (LCCI) has entered into a strategic partnership with the African Export-Import Bank (Afreximbank) to provide much-needed support for small and medium-sized enterprises (SMEs) in Nigeria. This collaboration, which was recently unveiled, is expected to enhance access to finance, trade opportunities, and capacity-building for businesses that form the backbone of the Nigerian economy.

The agreement comes at a time when SMEs are grappling with multiple challenges, including limited access to credit, inflationary pressures, rising operational costs, and stiff competition in both domestic and international markets. By leveraging Afreximbank’s expertise in trade finance and LCCI’s deep-rooted presence within Nigeria’s business ecosystem, the partnership aims to create sustainable pathways for SME growth and competitiveness.

SMEs in Nigeria account for nearly 50 percent of the country’s GDP and over 80 percent of employment, according to data from the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). However, despite their significant contribution to economic growth, these businesses often face difficulties accessing affordable financing from commercial banks due to high interest rates, stringent collateral requirements, and perceived risks by lenders.

Through this new collaboration, Afreximbank is expected to extend tailored financial products to Nigerian SMEs, particularly those engaged in export-oriented activities. Officials said the bank will offer credit facilities and trade financing solutions to help businesses overcome capital constraints while exploring new opportunities in regional and international markets. The partnership also emphasizes technical assistance, training, and advisory services to help SMEs improve corporate governance, financial management, and operational efficiency.

LCCI President Gabriel Idahosa welcomed the initiative, stressing that the partnership represents a turning point for Nigerian businesses struggling to survive in an increasingly competitive global economy. “This collaboration will provide a platform for our SMEs to access financing, networks, and trade opportunities that have been out of reach for many years. It is a bold step toward empowering local businesses to compete not just locally but across borders,” Idahosa stated.

Afreximbank, headquartered in Cairo, has been at the forefront of financing intra-African trade and supporting businesses across the continent. With Nigeria being one of its key markets, the bank has committed billions of dollars over the years to support trade, industrialization, and infrastructure development. The latest partnership with LCCI further underscores its strategy of strengthening local institutions to deliver value directly to SMEs, which are seen as drivers of innovation and employment.

Benedict Oramah, President of Afreximbank, reiterated the bank’s commitment to Nigeria’s economic transformation through empowerment of small businesses. He noted that the African Continental Free Trade Area (AfCFTA) presents unprecedented opportunities for Nigerian SMEs, but the benefits can only be realized if businesses are adequately equipped to compete. According to him, this partnership will focus on equipping SMEs with the tools, resources, and knowledge they need to scale and thrive under AfCFTA frameworks.

Industry stakeholders have applauded the initiative, saying it could help address longstanding financing gaps that have stifled the growth of local enterprises. For years, Nigerian SMEs have faced the twin problems of underfunding and lack of market access. Analysts believe the LCCI-Afreximbank partnership could help bridge this gap by not only providing financial support but also opening trade corridors across Africa and beyond.

The Nigerian government has also expressed support for the collaboration, noting that it aligns with ongoing efforts to diversify the economy away from oil dependence. Officials from the Federal Ministry of Industry, Trade, and Investment noted that empowering SMEs is central to industrial policy, as it strengthens domestic value chains, promotes export diversification, and fosters resilience in the face of global shocks.

Beyond financing, the initiative also seeks to leverage digital platforms and innovation to enhance SME competitiveness. Afreximbank has developed trade facilitation tools, such as the Pan-African Payment and Settlement System (PAPSS), which allows businesses to conduct cross-border trade using local currencies. This system is expected to significantly benefit Nigerian SMEs by reducing foreign exchange risks and transaction costs associated with international trade.

LCCI’s role in the partnership will be to mobilize its extensive network of members and business leaders to take advantage of these opportunities. The chamber, established over 135 years ago, remains one of Nigeria’s most influential business associations, with a mandate to promote trade, investment, and private sector development. Its partnership with Afreximbank is being seen as a practical step toward achieving these goals in a fast-changing economic landscape.

Experts note that the success of the initiative will depend on execution and accessibility. They caution that many SMEs are discouraged from participating in financing programs due to bureaucratic hurdles, lack of awareness, or distrust of financial institutions. To address this, both LCCI and Afreximbank have pledged to ensure transparent processes and simplified requirements so that even the smallest enterprises can benefit.

The partnership is expected to yield long-term benefits for Nigeria’s economy, including job creation, improved foreign exchange earnings, and enhanced competitiveness of local industries. It also sends a positive signal to international investors about Nigeria’s readiness to support private sector growth.

As the collaboration between LCCI and Afreximbank gets underway, anticipation is high among entrepreneurs and business owners. Many see it as a rare opportunity to overcome structural barriers that have hindered their growth for decades. If implemented effectively, the initiative could unlock a new wave of entrepreneurial energy, positioning Nigeria’s SMEs as key players in Africa’s evolving trade and economic landscape.

In a period marked by economic uncertainty, the partnership stands out as a proactive intervention designed to strengthen the foundations of the Nigerian economy. By combining financial muscle with institutional support, LCCI and Afreximbank are not only addressing immediate challenges but also laying the groundwork for a more resilient and inclusive business environment.