FirstBank Nigeria has reaffirmed its commitment to financing local manufacturers and agro-processing businesses, highlighting the role of access to capital in strengthening domestic production, promoting industrialisation and creating employment opportunities.
The bank’s Managing Director and Chief Executive Officer, Olusegun Alebiosu, disclosed this during a breakout session at the 32nd Economic Summit in Abuja, where he discussed the importance of financial support for businesses seeking to expand production and contribute to Nigeria’s economic development.
Alebiosu said FirstBank had supported businesses in rice milling, plantation agriculture and agro-processing, including palm oil processing. The financing is intended to help enterprises increase production capacity and supply more goods to the Nigerian market.
He emphasised that access to finance enables entrepreneurs to establish factories, purchase raw materials and invest in the infrastructure required to grow their businesses.
According to Alebiosu, industrialisation is essential to creating employment for Nigeria’s growing population and the increasing number of graduates entering the labour market.
“The teeming population that we have and the graduates that we are churning out, the only thing that can absorb them is industry,” he said.
He explained that the benefits of industrial investment extend beyond factory employment. Manufacturing activities can also generate business for transport operators, food vendors, housing providers, schools, healthcare services and other enterprises serving industrial communities.
The FirstBank chief executive encouraged entrepreneurs to explore opportunities in manufacturing, agro-processing, industrial power generation and industrial clusters. He noted that stronger domestic production could reduce dependence on imported goods while stimulating economic activity across supply chains.
However, Alebiosu identified poor credit culture and loan repayment failures as challenges affecting access to business financing. He said defaults by some borrowers had made banks and development finance institutions more cautious about lending, creating additional difficulties for businesses seeking capital.
He urged entrepreneurs to demonstrate financial discipline, sound management and the ability to repay loans. He also cautioned against providing financing to businesses without the technical and managerial capacity to use funds effectively.
Alebiosu acknowledged that high borrowing costs, including double-digit lending rates, could limit industrial expansion. He also identified foreign exchange stability as an important factor in business planning, noting that currency uncertainty can complicate investment decisions and the procurement of production inputs.
He questioned the practice of requiring commercial banks to guarantee loans provided by institutions established to support industrial development, arguing that the arrangement reflected concerns about the creditworthiness of businesses seeking funding.
Beyond manufacturing and agro-processing, Alebiosu highlighted FirstBank’s FirstGem initiative, which supports women-owned businesses across several sectors, including tailoring, fashion, beauty and food processing.
He said the initiative, which had been operating for about five years, focuses on helping women develop productive enterprises rather than concentrating solely on conventional trading activities.
According to Alebiosu, supporting women entrepreneurs can strengthen households, help businesses grow and create additional economic opportunities. He added that young women were increasingly participating in the initiative.
FirstBank’s financing priorities reflect the importance of directing capital towards businesses capable of increasing local production, strengthening value chains and generating employment. For Nigerian manufacturers and agro-processors, access to suitable financing can help them expand operations, improve productivity and meet market demand.
However, the impact of such support will depend partly on the availability and affordability of credit, the ability of businesses to manage their operations effectively and their capacity to meet repayment obligations.
By supporting productive enterprises, financial institutions can contribute to efforts to strengthen Nigeria’s manufacturing base, expand agro-processing and create sustainable employment opportunities.
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