By Ajewole Joshua|ABNews|
Lagos, Nigeria — October 9, 2025. A stern warning has been issued to small business owners across Nigeria to stop treating loans as free money, as financial institutions tighten compliance on loan defaulters.
The caution came from Dr. Adeogun Mojisola Abigail, a senior executive at Prospera Microfinance Bank, during her address at the Finance Meet Entrepreneur 2025 Conference, organized by the Institute of Entrepreneurship and Apprenticeship Management and Administration (IEAMA) in Festac, Lagos.
According to her, many entrepreneurs lose access to funding not because money isn’t available, but because they misuse loans, ignore repayment plans, or take funds for business and divert them to personal expenses.
“Loans are not gifts. Every microfinance bank is regulated by the CBN and NDIC. When you default, your name is recorded, and that affects your future access to credit — not just in one bank, but across the system,” she warned.
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Dr. Mojisola emphasized that access to finance is no longer just about collateral, but about credibility, integrity, and structured financial records.
She urged entrepreneurs to:
- Keep proper bookkeeping
- Use funds strictly for approved business purposes
- Communicate early with lenders in case of repayment challenges
“If you mismanage one loan, you close the door to the next opportunity. Microfinance is designed to help — but only for those who help themselves,” she added.
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IEAMA Registrar, Dr. Jerry Ibeh, supported her position, noting that the biggest obstacle between small businesses and funding is not lack of lenders — but lack of structure in entrepreneurs
The programme enlightened Nigerians on the importance of maximising opportunities provided by the government through Microfinance Banks. Through IEAMA, the nation is poised for significant economic growth, as the institution is committed to connecting entrepreneurs with financial institutions, raising awareness, and bridging the existing funding gaps.
