Financial experts, including First Bank of Nigeria Limited, have identified digitisation, collaboration, and risk restructuring as critical to scaling supply chain finance and improving access to funding for Small and Medium Enterprises (SMEs).
They made the call at a panel session, titled: “Scaling supply chain finance: Boosting domestic value chains, looking across borders.”
This was during the 2026 Global Trade Review West Africa on Wednesday in Lagos.
Oluseye Thomas, Head of Export Desk, First Bank of Nigeria Limited, said digitisation was key to enhancing efficiency, transparency, and accessibility in supply chain financing.
He noted that the sector faces structural challenges largely due to its heavy reliance on SMEs, many of which remain informal and lack access to credit.
Thomas said digital solutions could reduce fraud, streamline documentation, and improve logistics across value chains.
He also stressed the need for stronger collaboration among stakeholders, noting that no single institution could address the complexities within the ecosystem.
According to him, restructuring risk by shifting financing exposure from SMEs to large corporates, known as anchor companies, will improve access to funding.
“The idea is to move risk from SMEs to the large corporates they supply, making financing more accessible and sustainable,” he said.
He explained that the model differs from earlier frameworks by leveraging the financial strength of corporates to support SMEs indirectly.
Thomas added that banks must balance SME support with the need to protect depositors’ funds, noting that many SMEs lack the structure required for credit access.
He said financial institutions had introduced products such as invoice discounting, vendor financing and contract financing to de-risk lending, many of which are now digitised.
Also, Victory Olumuyiwa, Global Head of Treasury and Investor Relations, Sun King, emphasised the need for deeper collaboration and engagement with regulators to create enabling frameworks for innovation.
Adesanmi Adedayo of Standard Bank Group urged corporates to strengthen SMEs within their value chains by improving financial discipline and record-keeping.
The panelists identified securitisation, guarantees and risk-sharing mechanisms as key tools for unlocking capital, noting that development finance institutions could provide first-loss guarantees.
They also highlighted the role of insurance firms in underwriting risks, as well as the importance of adopting advanced technologies, including artificial intelligence, to improve compliance and reduce fraud.
The experts cautioned against digitising inefficient systems and stressed the need for proper integration of technology, alongside robust cybersecurity measures.
On cross-border trade, they called for improved payment systems and standardised processes to enhance efficiency.
They also highlighted the role of the African Continental Free Trade Area in expanding regional trade and creating new opportunities for businesses.
The panelists agreed that effective collaboration and sound risk management would be key to driving inclusive growth and strengthening West Africa’s economies.
