Yesterday in Lagos, a significant milestone was reached with the official launch of Databanc, a cutting-edge platform developed through a collaboration between Sterling Bank and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). This platform is designed to register small businesses across the country, assign them unique identifiers, and provide access to essential resources that can support their growth, including critical financing opportunities.

Databanc is a game-changer for Nigeria’s small and medium enterprises (SMEs), aligning directly with SMEDAN’s broader goal of deepening its understanding of the SME sector by collecting accurate and comprehensive data. By fostering the formalization of businesses, Databanc also creates a pathway for SMEs to integrate into Nigeria’s formal economy, which opens the door to more opportunities, such as credit and government support initiatives.

One of the standout features of Databanc is its ability to enhance the success rate of SMEs applying for the SMEDAN-Sterling 5 billion naira loan program, which offers single-digit interest rates to qualifying businesses. SMEs often struggle to secure financing due to a lack of proper documentation or a clear demonstration of their creditworthiness. Databanc helps bridge this gap by enabling businesses to gather and present the necessary paperwork, demonstrating their potential for growth and sustainability.

So far, the program has shown remarkable success. Nearly 200 million naira has already been disbursed to applicants who have met the necessary criteria, paving the way for more SMEs to receive much-needed financial support. This funding is designed to help them scale their operations, expand their reach, and contribute to Nigeria’s overall economic development.

Moving forward, SMEDAN remains committed to providing continuous support to SMEs, ensuring they fully benefit from the resources available through Databanc and other similar initiatives. This collaboration with Sterling Bank exemplifies SMEDAN’s ongoing efforts to strengthen Nigeria’s SME sector and provide the tools businesses need to thrive in an increasingly competitive marketplace.