FirstBank reaffirms support for manufacturing, job creation

FirstBank has reaffirmed its commitment to supporting manufacturing and agro-processing businesses as part of efforts to accelerate industrialisation, boost local production and create employment opportunities in Nigeria.

The Managing Director and Chief Executive Officer of FirstBank, Olusegun Alebiosu, said the bank had provided financing support to rice mills, plantation agriculture and agro-processing businesses, including palm oil processing, to strengthen domestic production and promote economic growth.

Alebiosu spoke during a breakout session at the 32nd Economic Summit in Abuja on Tuesday, where he identified access to finance for productive enterprises as a critical driver of industrial development and sustainable economic growth.

He stressed that financial institutions had a significant role to play in enabling entrepreneurs to establish factories, procure raw materials and manufacture goods locally, noting that industrialisation was essential to addressing unemployment among Nigeria’s growing population and 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.

According to him, investments in manufacturing generate employment beyond factory floors, creating additional economic opportunities in transportation, food vending, housing, education, healthcare and other services that develop around industrial communities.

He encouraged Nigerian entrepreneurs to explore opportunities in manufacturing, agro-processing, industrial power generation and industrial clusters, noting that increased domestic production could reduce dependence on imported goods while stimulating economic activity.

Despite the opportunities in the manufacturing sector, Alebiosu identified poor credit culture and loan repayment failures as major obstacles to financing industrial enterprises.

He explained that the failure of some borrowers to meet their repayment obligations had made banks and development finance institutions more cautious about lending, thereby limiting access to capital for businesses seeking to expand their operations.

He maintained that access to affordable financing would remain challenging unless entrepreneurs demonstrated financial discipline, repayment capacity and the managerial expertise required to build sustainable businesses.

Addressing concerns over high borrowing costs, the FirstBank chief executive acknowledged that double-digit lending rates could constrain industrial expansion. However, he urged entrepreneurs not to abandon viable manufacturing opportunities solely because of the cost of credit.

He also highlighted foreign exchange stability as an important factor in improving business planning, investment decisions and access to essential production inputs.

Alebiosu further questioned the practice of requiring commercial banks to guarantee loans provided by institutions established to promote industrial development, suggesting that the arrangement reflected concerns about the creditworthiness of businesses seeking financing.

He cautioned against extending loans to entrepreneurs who lacked the technical knowledge and managerial capacity to deploy funds effectively, urging business owners to ensure that borrowed funds were used for their intended purposes.

Beyond manufacturing and agro-processing, Alebiosu highlighted FirstBank’s FirstGem initiative, which he said had been operating for about five years to support women-owned businesses.

He explained that the programme had expanded its reach to enterprises across various sectors, including tailoring, fashion, beauty and food processing, with a focus on building productive businesses rather than concentrating solely on conventional trading activities.

According to him, empowering women entrepreneurs could strengthen households, expand businesses and create additional economic opportunities within communities.

He added that young women were increasingly embracing the initiative, reflecting growing interest in entrepreneurship and business development.

Alebiosu reaffirmed the bank’s commitment to supporting women-owned enterprises as part of its broader strategy to promote entrepreneurship, productive investment and inclusive economic growth.

He reiterated that sustained investment in manufacturing, agro-processing and other productive sectors would be essential to expanding Nigeria’s industrial base, creating jobs and strengthening the domestic economy.