Some diverse industry experts have identified pathways for small and medium enterprises (SMEs) in Nigeria to transition into the Green economy model for sustainability, quality efficiency and durability.
According to the experts, major challenges facing SMEs has always been paucity of funds needed to aid seamless transition.
Speaking at different panel discussions at the inaugural edition of the Lagos Green Economy Forum which held last Wednesday, July 23, the experts noted that a viable roadmap and financing mechanism will motivate SMEs to commit to climate action and sustainability.
The Lagos State Commissioner for Environment and Water Resources, Tokunbo Wahab who was guest speaker at the forum explained that it is vital that small businesses are included in the climate action and sustainability conversations.
He said the state has a pool of Trust Fund and a dedicated ministry, Ministry of Wealth Creation where entrepreneurs can get funding for seamless transition into the Green economy model.
Represented by Babatunde Ajayi, General Manager, Lagos State Environmental Protection Agency (LASEPA), Wahab said this will help educate them on their contribution to climate change, steps to take and provide them with the skills to make the right decisions to grow sustainably while tapping opportunities in the green space.
Pointing out the need to address the issues of SMEs, he said, “Lagos has well over 8,000 SMEs and driving sustainability is one way of bringing more people into it.”
“The steps we have taken as a city to drive sustainability is first of all by providing opportunity for SMEs to get financing to transition from fossil fuel to green power or green electricity where you have solar panels, and things like that.
“We have the Employment Trust Fund where they can get funding, this helps them to scale faster, there is the Ministry of Wealth Creation, where there are a lot of funding opportunities, these help them to scale faster, so all these put together help them drive sustainability,” he added.
Sola Obadimu, director-general of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), stressed that immediate action from SMEs on climate issues is critical.
Obadimu noted that the organised private sector reaffirmed its support and readiness to collaborate on initiatives that promote green jobs, attract climate finance and empower cities and communities for a long-time resilience and sustainability.
He appreciated the organisers of the event, noting that it is apt and timely.
The event gathered large corporations to share experiences with SMEs on how they have incorporated sustainable business practices in their supply chain processes, which has resulted in extending and institutionalizing such practices in vendors’ businesses.
The Director-General (DG) of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) is opening remarks said the association is committed to supporting policies and initiatives that will promote green jobs, attract climate finance, and foster green entrepreneurship.
The NACCIMA DG said Lagos, as Nigeria’s commercial and innovation hub, contributes over 30 percent of the country’s gross domestic product (GDP) and is home to “more than 30 million people”, making it a vital player in the transition to a green economy.
“We reaffirm our support and readiness to collaborate on initiatives that will promote green jobs, attract climate finance, and foster green entrepreneurship,” the DG said.
Obadimu said the forum marks a significant step toward positioning Lagos as a sustainable, climate-resilient, and socio-economic leader nationally.
“It also aligns with the United Nations Sustainable Development Goals (SDGs), particularly SDG 7, which emphasises affordable and clean energy, SDG 11, sustainable cities, SDG 12, responsible consumption and production, and SDG 13, which is on climate action,” he said.
Citing data from the International Finance Corporation (IFC), he said the green economy is projected to reach $10.3 trillion by 2050, presenting vast opportunities for economies like Lagos to scale renewable energy, promote eco-friendly construction, and reinvest in efficient transport systems.
“Therefore, let us see this forum not merely as a conversation, but as a call to action to redesign the way we live, the way we work, and the way we grow,” he said.
Also speaking at the event, Head of Renewable Energy at First City Monument Bank (FCMB), Chinma George said the Bank has several funding options for credible SMEs to access seamlessly.
“I can make bold to say that FCMB is the most SME friendly bank in Nigeria. In fact we have been running a zero-interest loan for female founded SMEs in Nigeria for years now. Aside that, we have several funding options for verifiable businesses. People just need to walk into the Bank and access these facilities,” George said.
Convener of the Forum, Korede Oluwole who expressed fulfillment on the success of the Forum was meant to serve as a platform for conversations on sustainability transition for SMEs.