Regent Microfinance Bank CEO Outlines Capital, Trust, and Technology As Key Drivers For SME Growth

Idris Olugbesan of Regent Microfinance Bank identifies capital, trust, and technology as essential for SME growth. Read his insights on Nigerian business scaling.

By: AXL Media

Published: Apr 29, 2026, 3:46 AM EDT

Source: Information for this report was sourced from Punch Newspapers

Addressing Barriers To Sustainable Scaling

The future of Small and Medium-scale Enterprises in Nigeria hinges on a strategic shift in how they interact with the financial ecosystem. Idris Olugbesan, the Managing Director of Regent Microfinance Bank, emphasized on Tuesday that while SMEs are the backbone of the national economy and primary drivers of employment, their growth is frequently stifled by systemic hurdles. He noted that for these businesses to scale sustainably, the industry must focus on three critical areas: consistent access to capital, the establishment of trust between lenders and borrowers, and the widespread integration of modern technology.

Designing Finance For The Informal Sector

One of the most persistent obstacles for Nigerian entrepreneurs is the rigid nature of traditional banking requirements. Olugbesan highlighted that many SMEs operate informally and often lack the exhaustive documentation typically required to secure funding. To bridge this gap, he called on financial institutions to design inclusive products that reflect the actual operating environment of small businesses. He argued that when financing models are tailored to the specific cash flows and needs of entrepreneurs, it becomes significantly easier for those businesses to contribute to the broader economy.

Trust As A Bridge To Financial Inclusion

Beyond the availability of funds, Olugbesan identified trust as the fundamental currency of the financial system. He described trust as the essential bridge that encourages business owners to migrate from informal cash based operations to formal financial systems. Building this rapport requires a commitment to transparency, responsible lending practices, and proactive customer engagement from banks. According to the CEO, when entrepreneurs feel secure in their partnership with a financial institution, they are more likely to adopt formal solutions that support long term stability and expansion.