The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigerian businesses require more than conventional loans to expand, stressing the need for patient capital, experienced investors and institutional support to overcome persistent barriers to growth.

Oyedele said this on Saturday in Abuja at the fourth edition of the Nigeria Sovereign Investment Authority Prize for Innovation, where seven startups received awards valued at $277,000.

Represented by his Special Adviser on Finance and Investment, Marie Ukpere, the minister said access to credit alone could not address the structural challenges confronting entrepreneurs.

“We also recognise that high-potential businesses often require more than conventional credit. They need patient capital, experienced investment partners, and networks that can help them enter new markets and achieve scale,” he said.

He noted that although small and medium-sized enterprises sustained millions of livelihoods and provided employment across the country, many struggled to expand because of inadequate financing, technical capacity and institutional backing.

“Too many promising businesses struggle to grow because they cannot access financing, skills, or institutional support they need to succeed,” Oyedele added.

According to him, Nigeria’s ambition to build a $1tn economy depends significantly on transforming small businesses into medium-sized enterprises and eventually large companies capable of competing internationally.

He identified the Development Bank of Nigeria and the National Credit Guarantee Company as institutions supporting access to business financing, explaining that the latter was designed to reduce lending risks and encourage banks to extend credit to SMEs and manufacturers.

Oyedele also highlighted the Nigerian Consumer Credit Corporation’s efforts to strengthen household purchasing power and domestic demand.

He cited the $618m Investment in Digital and Creative Enterprises programme as another intervention supporting young entrepreneurs through financing, skills development and business assistance.

The minister disclosed that the NSIA was anchoring venture capital funds to attract institutional investment into Nigerian enterprises and developing an impact innovation fund with the Japan International Cooperation Agency, with British International Investment expressing interest in participating.

He said the proposed fund would support commercially viable businesses addressing economic and development challenges.

“The real measure of your success will not be the prize you receive today. It will be the businesses you go on to build afterwards,” Oyedele told the finalists.

Earlier, the Managing Director and Chief Executive Officer of the NSIA, Aminu Umar-Sadiq, disclosed that the 12 finalists emerged from more than 6,000 applications following five stages of screening and business development activities.

Speaking further during an interview with journalists, Umar-Sadiq explained that the competition formed part of the authority’s investment strategy to support entrepreneurs alongside its infrastructure financing activities.

He said the programme focused on healthcare, manufacturing and food systems this year because of their potential to generate employment, develop skills and improve productivity.

The NSIA boss added that all 12 finalists would participate in a six-week learning programme at Lagos Business School, while strategic partners would provide additional opportunities for financing and business development.

He explained that the authority monitored its investments by working with beneficiary companies to improve corporate governance, strengthen management and expand demand for their products.

“When the equity injection goes into these companies, we work very closely with the management teams to enhance their value proposition, strengthen their governance and broaden the demand for their products,” he said.

Citing previous winners, including Money Africa and Sycamore, Umar-Sadiq maintained that the impact of startup investments should be assessed over approximately five years rather than expecting immediate results.

Also speaking, the National Coordinator of the Presidential Unlocking Healthcare Value Chain Initiative, Dr Abdu Mukhtar, identified healthcare as a major investment opportunity, estimating Nigeria’s addressable healthcare market at $20bn.

“We estimate that across the healthcare value chain, the addressable market is about $20bn. There are already about 250,000 SMEs in healthcare, according to the IFC,” he said.

Mukhtar identified pharmaceutical manufacturing, medical devices, clinical research, telemedicine and healthcare logistics as areas offering opportunities for entrepreneurs.

The founder and Chief Executive Officer of ReelFruit and lead judge of the competition, Affiong Williams, said her company had raised more than $7m over 14 years, attributing its ability to attract investment to preparation, credibility and resilience.

She urged entrepreneurs to understand customer demand, build strong networks and remain focused despite economic instability.

Similarly, Cascador Founder and Director, Dave DeLucia, argued that preparing businesses to attract investment was as important as providing capital.

“Capital readiness is just as important or more than the capital itself,” he said, adding that entrepreneurs outside Lagos often required greater institutional support.

At the competition, Come Again Foods emerged as the overall winner, receiving a combined $105,000 prize, while Protein Kapital and InstantRad finished second and third, securing $70,000 and $50,000, respectively.

Other beneficiaries included Eight Medical, Uwana Energy, Tryctor and Smartei Agri Tech.

The NSIA said the $277,000 award package comprised $220,000 from the authority, $45,000 from Cascador and $12,000 from Wema Bank, with additional opportunities for business development and investment support.