LivingTrust

AFCFTA: DBN gives first tranche of N1 billion MSMEs fund to LivingTrust Mortgage Bank

by with No Comment BusinessfinanceNews

The aforementioned reforms and policy interventions provide the needed environment for small businesses in Nigeria and the coming of the AfCFTA could not have been at a better time.

Independent of the AfCFTA, the Federal Government of Nigeria has in recent times embarked on some far-reaching reforms aimed at enhancing ease of doing business both for the Small and Medium-sized Enterprises (“SMEs”) and across other strata of business in Nigeria.

READ ALSO: Excitment as FG credits Nigerian man under Survival Fund program.

Some of these reforms can be seen in the areas of policies, laws, business formation and registration, post-incorporation filings and taxation.

Two of the legislative instruments which are critical to these reforms deserve some mention here:

Companies and Allied Matters Act, 2020 (CAMA, 2020)

The signing of CAMA, 2020 into law by President Muhammad Buhari on 7th August 2020 came as a very cheering news to the SMEs community.

Some of the provisions which impact directly on SMEs include but not limited to the following

(i) a single member/shareholder for a private company

(ii) minimum share capital in place of authorized share capital. This allows promoters of business to pay for only shares that are needed at the point of incorporation;

(iii) exemption of SMEs, small companies or companies with single shareholders from the requirement of appointing Auditors to audit their financial records

(iv) filing, share transfer and meetings can be done electronically by private companies

(v) Statement of compliance which was hitherto signed by legal practitioners can now be signed by the business owner or his agent

(vi) introduction of Limited Partnerships and Limited Liability Partnership thereby providing options for promoters who may want to incorporate partnership instead of limited liability companies

(vii) Appointment of company secretary now optional for private companies

(viii) AGMs and other company meetings can now be held virtually, amongst other reforms.

Finance Act, 2020

Complementing the reforms under the CAMA 2020 is the Finance Act.

Enacted first in 2019, the Act was further expanded and re-enacted to among other things address the negative impacts of COVID 19 on small businesses and this led to the new Finance Act, 2020.

The new Finance Act was signed into law on 31 December 2020 and took effect from 1st January 2021.

It introduced over 80 amendments to 14 different laws such as the Personal Income Tax Act, Companies Income Tax Act, Capital Gains Tax Act, Value Added Tax Act, Customs & Excise Tariff Act, Tertiary Education Trust (TET) Fund Act, Fiscal Responsibility Act, Public Procurement Act, CAMA, Nigerian Export Processing Zone Act and Oil and Gas Export Processing Free Zone Act.

SMEs are expected to take advantage of the incentives provided under the new Act.

SMEs with a turnover of less than N25 Million are exempted from Companies Income Tax and TET tax amongst other incentives.

SMEs engaged in primary agricultural production are qualified for pioneer status for an initial period of four years and an additional two years.

MSME Survival Fund

In a bid to ameliorate the impact of COVID-19 on small businesses, the Federal Government of Nigeria launched the N75 Billion Survival Fund for Micro, Small and Medium Enterprises (MSME).

The Fund which was touted as part of the economic sustainability Plan of the Federal government is meant to support small businesses to meet basic operational needs and provide funding in order to boost the production capacity of MSMEs in Nigeria.

The AfCFTA

The aforementioned reforms and policy interventions provide the needed environment for small businesses in Nigeria and the coming of the AfCFTA could not have been at a better time.

The critical question remains, how SMEs can leverage the opportunities provided under the AfCFTA to scale up their operations.

SMEs are often considered the economic backbones particularly in developing countries as they account as major contributors to the GDP and in the area of job creation.

Nigeria has a vibrant SME ecosystem. Out of the 95 Million SMEs in Africa, over 45 Million of them are in Nigeria.

Thus, on the continent Nigeria plays a huge role, accounting for close to 50% of SMEs.

In terms of economic impact, SMEs contribute 48% of national GDP in Nigeria, make up the 96% of businesses and contribute 84% of employment.

Despite the contribution to the economy, SMEs in Nigeria in particular, have continued to grapple with the challenges of high cost of capital and lack of access to funding as well the inability to compete globally.

Due to the largely informal nature of SMEs in Nigeria, obtaining data for the purpose of planning has also been difficult.

On this, the role of Small & Media Enterprises Development Agency of Nigeria (SMEDAN) in amongst other things, formalization of SMEs in Nigeria should be encouraged.

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MSME Capital

MSMEs: Deepening access to capital…

by with No Comment Uncategorized

Deepening access to capital for Nigerian MSMEs during a pandemic

While Nigeria has, so far, seemingly been spared the public health onslaught created by COVID-19, the country has not escaped the urgent economic crisis created by the pandemic.

READ ALSO: First trade deficit in 4yrs as COVID hurts exports

Worse, hardest hit have been the micro, small, and medium enterprises (MSMEs), whose operations are largely traditional and dependent on physical contact with their consumers and partners.

Over 40 million MSMEs exist in Nigeria, employing over 80 percent of the country’s population and contributing about 50 percent of the country’s GDP. Now, the biggest threat to the survival of these businesses central to the economy lies in their physical approach to interacting and transacting, which has left them unprepared to take advantage of the opportunities offered by digitization as well as vulnerable to the lockdowns and distancing measures intended to stave off the health crisis.

Financial exclusion—especially among micro-entrepreneurs in the informal sector— was a national concern even before COVID-19 made in-person interactions hazardous. To address this issue, prior to the pandemic (as far back as 2017, in fact), large-scale microcredit interventions such as the Government Enterprise and Empowerment Program—in which the Bank of Industry (BOI) participates—have been targeting four economic segments—market traders, artisans, youth, and farmers—for increased financial inclusion. Technology has been key: By leveraging the power of data, biometrics, and mobile wallet systems, and with an extensive network of over 17,000 agents, BOI has been able to identify, target, and deliver micro-credit to over 2.4 million MSMEs across Nigeria. Remarkably, over 52 percent of the beneficiaries are female. In the process, the bank has onboarded an additional 500,000 beneficiaries onto the formal financial system—essentially using technology to break the barrier of access to finance and financial services for underserved demographics.

At the onset of the pandemic, our bank’s immediate objective was to ensure business continuity by deepening our MSME activities through the provision of innovative lending solutions to new customers. Through our microcredit platform, BOI’s agent network—spread across the country—operate as proxies enabling beneficiaries to efficiently interact with technology and have their businesses captured and digitized in records. These agents, equipped with smartphones loaded with the bank’s data-driven applications, engage informal entrepreneurs by capturing their Know-Your-Customer details, profiling their business, tracking transaction histories, and monitoring income and spending patterns—thus providing financial solutions tailor-made to boost financial literacy, improve credit worthiness, and support their micro-businesses with funds, especially during these difficult times.

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Insurance Plan SME

Insurance Plan for SMEs in Nigeria

by with No Comment Businessfinance

Small and medium-sized enterprises (SMEs) tend to cycle outside the insurance loop for reasons ranging from ignorance to cost.

READ ALSO: Nigeria to reward every diaspora dollar inflow with N5

Corporate calculations at the lower part of the enterprise ladder appear to be different from calculations nearer the top, resulting in smaller enterprises preferring to take bigger uncovered risk.

Insurance for small firms is like dashing into the rain without an umbrella the consequence could be uncomfortable, but the choice is more the result of the lack of knowledge than the lack of money.

 Analysts in growing numbers are beginning to realise that small businesses do not insure their assets not because they do not want to, but because they cannot afford to, or so they think.

The problem with small enterprise insurance appears to be a perception of cost rather than an understanding of loss.

Smaller-sized entrepreneurs tend to cost their goods or services without considering cost of insurance, thereby undervaluing the cost of their goods or services.

The consequence is that in a time of crisis they end up sorry rather than safe.

Data from the Nigeria Bureau of Statistics (NBS) show that local SMEs contributed about 48% of the national GDP in the last five years.

With a total number of about 17.4 million, they account for about 50% of industrial jobs and nearly 90% of the manufacturing sector, by number of enterprises.

The NBS report suggests that SMEs support industrialization and employment.  

More advanced economies have equally used SMEs to grow industries and promote development.

What is an SME? Running The Numbers

SMEs may look trivial, but they are the bedrock of several stable global economies.

Base research data indicates that the total cost of starting a micro enterprise (including working capital but excluding cost of land) is N5m but not exceeding N50m, with a labour size of 10 workers.

The total cost of starting a small enterprise (including working capital but excluding cost of land) is between N5m and N100m, but not exceeding N200 million, with a labour size of between 11 and 50 workers, while the total cost of starting a medium-sized enterprise (including working capital but excluding cost of land) is between N100m and N500m, with a labour size of between 51 and 200 workers.

Funding SMEs; The Search for Longevity and Stability

SMEs are usually faced with financial dark holes which have persistently led to their failure.

Despite a few federal and state-sponsored funding schemes for smaller businesses, several SMEs have hit the deck as they quickly run out of cash or find themselves buried under a heap of commercial debt.

Funding has been a key operational problem for SMEs as poor management capacity, weak record keeping, lack of operational transparency and no collateral conspire to keep SMEs out of the formal banking sector credit market.

Aside the lack of funds, other challenges that face SMEs include the lack of skilled manpower, multiplicity of taxes, high cost of doing business, and the low threshold for absorbing economic shocks.

…The Other Problems

Additionally, SMEs are confronted with risk-related issues ranging from, changing taste and preferences of consumers, economic vulnerability, infrastructural constraints such as poor power supply, inadequate supply of potable water, poor access roads, high cost of equipment, high rate of domestic inflation, management risk, marketing risk, reputation risk, natural disasters such as earthquakes, fire outbreak, and floods (especially in the farm belts), social unrest, and arson (like during the EndSARS protests).  

As an entrepreneur the best way to manage risk associated with a business (asides risks associated with managerial or operational competence) is by getting an insurance cover.

It is important to note that risks might be the reason why a venture capitalist would not invest in a business.

Nevertheless, before getting an insurance cover it would be reasonable to profile the business’s risk to determine the appropriate insurance policy to buy.

Admittedly, some of the risks of businesses are unforeseeable (‘black swans’) while others are known but the timing is unpredictable (‘grey swans’).

In identifying risks, it is important to understand that SMEs are businesses in the private sector, and they cut across all industries so, the nature of risk varies according to the industry.

The responsibility falls on the business owner to identify the risk associated with the industry and purchase insurance that reflect those industry-specific risks.

Some risks are uninsurable, in this situation the entrepreneur would do well to still approach an insurance professional to help in assessing the impact of an unforeseeable loss on the type of business the entrepreneur is engaged in and review the best risk-protection strategy.

In such situations, small businesses could self-insure by saving money for possible future losses.

A variety of insurance schemes or plans are critical to risk protection of SME businesses the kinds of risk protection arrangements include: Liability Insurance, Business Property Insurance, Workers Compensation Insurance, Health Insurance, Life Insurance and so on.

All About the Plans

SMEs require standard fare insurance protection schemes some of which include the following:

Fire and Risk Insurance Plan

Fire and Risk Insurance is a vital insurance plan for SME in Nigeria.

It covers your business against, earthquakes, fire outbreak, tsunami, flood, social unrest, intentionally inflicted damages that may occur in the line of your business.

An example was what happened during the end SARS protest that affected business premises and markets.

This insurance plan will protect your business against loss or damage because of rain, flood, and storm. 

Under this plan, your insurer will pay back all your losses, giving you the capital, you need to resuscitate your SME. 

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MSMEs women

Govt. Cushioning the Effects of COVID-19 on MSMEs

by with No Comment Business

How the Nigerian Government is Cushioning the Effects of COVID-19 on MSMEs

The negative impact of the COVID-19 pandemic, particularly on Micro, Small and Medium Enterprises has been overwhelming.

READ ALSO:Digital identity policy key to driving insurance growth

According to research, over 90% of business owners agreed that they were adversely affected. Their cash flow, sales, revenue and salaries/wages took the biggest hit.
While a number of medium and small scale business owners are struggling to keep their heads above water, the resultant effect for the others is devastating. With fast depleted fund reserves, most businesses are forced to close. Employees are laid off, and business owners, disgruntled. Over 82.8 percent of businesses are likely to lay off one to five employees.

MSMEs play a pivotal role in Nigeria’s economic development. They are responsible for over 84 percent of job creation in the country. Therefore, a continuous decline in their sales and profit may trigger a major unemployment crisis in the country.
In order to mitigate such occurrence, the Federal Government introduced the MSME Survival Fund. It is a N75 billion conditional grant to support micro and small enterprises and safeguard jobs in the MSMEs sector. Launched in September, 2020, the Fund is a part of ₦2.3 Trillion stimulus package, known as the Nigerian Economic Sustainability Plan (NESP).

The MSME Survival Fund Scheme has the following categories:
• Payroll Support: assist vulnerable MSMEs in meeting payroll obligations of between ₦30,000 – ₦50,000 per employee over 3 months.
• Artisans/Transport Workers Support: provide artisans and transport business operators with ₦30,000.
• Guaranteed Off-take Scheme: Bulk purchase of products from MSMEs to protect jobs and livelihood.
• General Grant: Support the survival of 100,000 MSMEs most affected by the COVID-19 pandemic.
• Formalization Support: Provide free CAC Business Name registration for 250,000 new businesses.

The program actively promotes gender inclusion – with 45% of the fund going to women-owned businesses.
Since the start of the program till date, the MSME Survival Fund has achieved the following results:
• Provided Payroll Support of between ₦30,000 – ₦50,000 for 3 months to 320,678 employees from 64,395 companies across 36 states and the FCT.
• Given one-time grant of ₦30,000 to 96,157 artisans and transport workers in 36 states and the FCT.
• Provided free business registration with CAC for 140,531 bMSMEs across the country.
Several beneficiaries across the country are thankful to the government for providing this timely intervention.

Mrs Nwodo Uche, the CEO of Andertek Global Roofing Ventures in Lagos State had this to say: “When one of our staff received her first payment from the Payroll Support, she was so elated because we had not been able to pay salaries for some months. It was really a welcome relief for us as a business and for our employees. The payments our staff received for three months seriously helped to cushion the effects of the pandemic. Our gratitude goes to the Federal Government for remembering small businesses in these trying times.”

Mallam Usman Ibrahim who is into fruit production in Kano State shared his experience: “I heard about the Survival Fund from one of my friends. I had to ask one of my staff to help us apply online and upload all our documents. I had ten employees before but I had to downsize to five, due to the effects of COVID-19. When we received our first payment in November, all my staff were so happy. We continued to receive the payments in December and January. It has helped us so much. Sales has now picked up this year and we can now afford to pay our staff again. I am grateful to the government for helping us, just at the time we needed it.”

Mrs Victoria Jashi, the head of Goodnews School in Gombe State was effusive in her praise for the government’s timely intervention: “We really thank the Federal Government for their help. Schools were not open for a long time and it affected our ability to pay salaries. The Payroll Support allowed us to register 10 employees which is the maximum per organization, although we had a staff strength of 52 employees. Every month that we received the payroll support, we brought all the funds together and shared it among all the staff. We just wanted everyone to partake of the benefits.”

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Small businesses

Small businesses get N53b to create 1 million jobs

by with No Comment Businessfinance

The Bank of Industry yesterday disclosed that it had  disbursed N53 billion to Micro, Small and Medium Enterprises (MSME), thereby creating jobs for about one million Nigerians.

READ ALSO: Price of petrol could rise as uncertainty looms in the global market

BOI’s Executive Director, Micro-Enterprise Directorate, Mrs. Toyin Adeniji, made this known during the graduation of the first batch of the participants of the Post-COVID-19 Economic Strategy Pilot Training Programme at the   Local Government Service Commission office, in Abere, Osogbo.

Adeniji said: “We have disbursed over N53 Billion to MSMEs in different sectors, thereby facilitating the creation of an estimated one million direct and indirect jobs.

“BOI provides subsidised loans to MSMEs at a single digit all-inclusive interest rate, which has helped to stimulate economic activities in the MSME sector.

Osun State Governor Adegboyega Oyetola said his administration had adopted a proactive strategy to stimulate the economy of the state which hitherto was adversely affected by COVID-19.

He also presented cash seed loans to 2,000 successful trainees of the Skills Upgrade and Entrepreneurship Training Programme.

Oyetola added that his administration had put in place, a workable strategy and   measures by making skill upgrade training, a priority in its 2020 budget as part of efforts to cushion the effects of the  global economic downturn and prepare for the worst circumstances that might arise.

The governor noted that the programme was designed to generate 15,000 direct and indirect sustainable job opportunities for the people annually.

He said his  administration had set aside ¦ 100 million for disbursement to beneficiaries of the scheme as seed loans of ¦ 100,000 only to each participant.

His words: “As an institution charged with providing security and welfare for citizens, our government, on coming to office two years ago during the world economic downturn adopted a proactive strategy to prepare for the situation and the worst circumstances that might arise.

“Under the Skills Upgrade training programme, we were able to re-focus, re-engineer and expand the scope, knowledge and relevance of artisans and people who lost their jobs to make them relevant under the new normal orchestrated by Covid-19.”

The Commissioner for Commerce, Industries, Cooperatives and Empowerment, Bode Olaonipekun, said the programme was put together by the government as part of efforts to address the adverse effects of the COVID-19 pandemic and ameliorate the disruptions to the livelihood of citizens.

He said 2, 000 participants were all trained in 15 different types of skills and empowered with startup loans to support their businesses.

SOURCE LINK

MSMEs

NBS, SMEDAN, to Confirm Number of MSMEs in Nigeria

by with No Comment BusinessNews

The process of authenticating claims by the Small and Medium Enterprises Development Agency (SMEDAN) that Nigeria has 37 million Micro, Small and Medium Enterprises (MSMEs) has commenced.

The nation’s stats office, National Bureau of Statistics (NBS), is assisting in confirming this figure.

READ ALSO: $1.4bn deal, sealed to produce ammonia

Last month, Director-General of SMEDAN, Mr Dikko Radda, disclosed at a conference in Abuja that there were about 37.1 million MSMEs operating in the country.

Mr Radda made this disclosure at the India-Nigeria Cultural Conference organised by the All India Universities Alumni Association, Abuja Chapter, themed ‘Micro, Small and Medium Enterprises in combating unemployment in Nigeria: India experience.’

“There are presently about 37.1 million MSMEs in Nigeria. That is huge.

“Their contribution to the Gross Domestic Product is about 48.7 percent, while their contribution to export is about 7.2 percent.

“That is to tell you how significant they are to our economy,” Mr Radda had stated at the conference.

He based his figure on the last national survey conducted in January 2014, where it was revealed that 37.1 million enterprises operating in the economy were employing 59.7 million persons.

Speaking at a one-day workshop on MSMEs Survey yesterday, Mr Radda said in the survey that will commence nationwide soon, two micro enterprises sub-class would be categorized instead of the former undifferentiated micro-enterprises class.

According to the SMEDAN chief, who was represented at the event by Mr Wale Fasanya, a senior employee of the agency, “This will help distinguish an establishment-leaning microenterprise sub-class (or salaried paid employment) from the other microenterprise sub-class of unpaid or part-time household members.”

SOURCE

SMEDAN MSMES

SMEDAN unveils Initiative To Boost MSMEs Access To Global Market

by with No Comment BusinessNews

The Federal Government has launched the ‘SMEDAN SELECT’ initiative to strenghten market expansion for Micro, Small and Medium Enterprises as well as support the creation of brand names for Made-in-Nigeria products.

READ ALSO: Nigeria’s SMEs Get FSD Africa Lifeline For Financial Inclusion

The Director-General of the Small and Medium Enterprises Development Agency of Nigeria, Dikko Umaru Radda said that the initiative which was designed to create brands from standard Made-in-Nigeria products in the food, fashion, beauty and goods sectors, would increase access to local, regional and global markets.

According to the DG, promoting the activities of the MSMEs is critical to the growth of the Nigeria economy as they collectively account for a majority of the enterprises in Nigeria and also account for the highest number of jobs created in the economy.

According to the National MSMEs Survey of 2017 conducted by the Agency in collaboration with the National Bureau of Statistics, Nigeria has a total of 41,543,028 MSMEs, employing 59,647,954 people and contributing 49.7 percent and 7.64 percent to nominal GDP and exports respectively.

He said, “Objectives of implementing SMEDAN SELECT are to increase access to local, regional and global markets for MSMEs; to support market expansion for MSMEs to support the creation of brand names for Made-in-Nigeria products as well as to increase awareness creation on standard Made-in-Nigeria products.”

Speaking at the launch of the SMEDAN SELECT Document,Wale Fasanya, Director, Planning, Research, Monitoring and Evaluation of the Agency, who represented the DG said the products, numbering about 150, have been specially selected across Nigeria.

He said these products would be displayed and marketed on the SMEDAN Website and other social media handles.

Radda noted that MSMEs, if properly harnessed, could trigger an entrepreneurial revolution in industrialization, agriculture and commerce in Nigeria towards creating the platform for job creation, wealth creation, poverty alleviation and food security.

He said, “Globalisation process for MSMEs can be realized through any of a range of cross border activities, including trade, international investment, and participation in strategic alliances, partnerships and networking arrangements.”

Despite the success of MSME strategies in a few countries, he said majority of developing countries have found that the impact of their SME development programs on enterprise performance has been less than satisfactory.

He, however, encouraged Nigerians to patronize all the products profiled as a way of supporting the MSMEs to achieve their collective goal.

SOURCE: THE WHISTLER

Enugu SME Experts

Enugu SME Center in Partnership with iCreate Africa need ‘Experts’

by with No Comment Enugu SME News

Dear #ESMEcommunity,

The Enugu SME Center in Partnership with iCreate Africa need ‘Experts’ in the fields listed below to train apprentices and get paid!!!

If you are a MasterCraft Person in these fields:
Tiling,
Carpentry,
Welding,
Plumbing,
Electrical Installation,
Drywall and Painting,
Solar –Inverter Installation & Maintenance,
Wallpaper Installation,
POP Installation and Wall Screeding
Concrete Construction Work, etc.

Register here:
To join the ENUGU SKILLERS ASSOCIATES (ESA) to be part of the Enugu Skillers Project under the ZERO interest Human Development Loans (HCDL)

Or visit ENUGU SME CENTER at No. 2 Market Garden Avenue by Ebeano Tunnel Round-about, GRA, Enugu.

SEE ALSO: Enugu govt. launches loan scheme for entrepreneurs

Fidelity MSMEs

Fidelity’s commitment to drive MSMEs through capacity building.

by with No Comment News

Fidelity Bank Plc, has reaffirmed its commitment to enhancing the productivity and prosperity of Micro Small and Medium Enterprises (MSMEs) in the country by providing capacity building and advisory services, innovative funding options and other forms of relevant support that would significantly improve their overall contributions to national development.

READ ALSO: Enugu govt. launches loan scheme for entrepreneurs

Fidelity CEO, Mrs. Nneka Onyeali-Ikpe gave the assurance at the Fidelity SME National Capacity Building Webinar organized by the bank for entrepreneurs in Enugu State, in collaboration with the Enugu State Ministry of Trade and Commerce and the Enugu SME Centre; Small and Medium Enterprises Development Agency of Nigeria (SMEDAN); Nigeria Association of Small & Medium Enterprises (NASME) and Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA).

The webinar which will take place across the country on a state-by-state basis, is part of concerted efforts to assist entrepreneurs across all sectors of the Nigerian economy develop requisite capacity to unlock their full potentials and take their businesses to the next level of growth.

Mrs. Onyeali-Ikpe who during her remarks on Wednesday provided insights into the bank’s unique approach to managing MSMEs, pointed out that SMEs which are businesses with less than N100m annual turnover contribute about 48 percent of national GDP, account for 96 percent of businesses and 84 percent of employment in Nigeria.

She noted that despite the significant contribution of SMEs to the Nigerian economy, challenges still persist that hinder the growth and development of the sector. Chief among these are funding, lack of infrastructure, poor management, low entrepreneurial skills, improper planning, poor digital skills, etc. The Fidelity CEO however noted that the webinar seeks to proffer appropriate solutions to these challenges in a very practicable manner.

“We have a dedicated SME Desk with innovative products and services to assist your business. Fidelity Bank, in partnership with various private and public institutions provides funding, business advisory services for all our customers. This webinar is an excellent opportunity to network, share information and deepen the SME sector in Enugu State,” she explained.

Themed “Funding and Financial Management,” the Enugu Edition had in attendance special guests including Mrs. Monica Ugwuanyi, First Lady, Enugu State, Sir Robert O. Anwatu, Managing Director/Chief Executive Officer, Roban Stores, and Mr. Chiedozie Atuegwu, Director, Michelle Laboratories Limited, amongst others.

In her remarks, Mrs. Ugwuanyi applauded the bank for its unrelenting support for MSMEs in Enugu State, stating that the Ifeanyi Ugwuanyi-led administration remained at the forefront of SME development in Nigeria as exemplified by its continuous investments in infrastructure deployment and provision of labor policy frameworks to further encourage investments.

Speaking in the same vein, President, Association of Bureau De Change Operators of Nigeria (ABCON) (ABCON) Dr. Aminu Gwadabe commended the bank for its sustained efforts at promoting MSMEs nationwide. Gwadabe noted that the bank had been very supportive to its 5,000 licensed members nationwide.

“The Bureau De Change (BDC) does about N1.4trillion per annum. Fidelity Bank controls 60 percent of these transactions in the country,” he explained.

Whilst shedding light on the dynamics of the Bureau De Change sector, Dr, Gwadabe revealed that exchange rate stability was determined by the country’s SME structure. Given the immense potentials inherent in the nation’s MSME space, he said that the fledgling sector, if properly positioned, could assist the Central Bank of Nigeria (CBN) achieve its mandate on exchange rate stability.

SOURCE: Nigerian News Direct

SMEDAN INITIATIVE

MSMEs To Receive Support Through SMEDAN

by with No Comment BusinessNews

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) says it will support Nigeria Micro Small and Medium Enterprises, MSMEs in a practical way through its SMEDAN SELECT initiative.

The Director-General of the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, Dr Dikko Umaru Radda said this at the launch of the SMEDAN SELECT Document in Enugu State, Southeast Nigeria

READ ALSO: Fegho Umunubo, Arinze Chilo-Offiah, Dolapo Adejuyigbe To Speak at BusinessDay, NetPlusDotCom Webinar

The DG who was represented by Director, Planning, Research, Monitoring and Evaluation Mr Wale Fasanya, said the SMEDAN SELECT is designed towards creating brands from standard products amongst the best of Made in Nigeria products in the food, fashion, beauty and goods sectors.

Radda said, “these products, numbering about 150, have been specially sought and selected across Nigeria and the products would be displayed and marketed on the SMEDAN Website and other social media handles.”

“The hardcopy catalogues would also be distributed to Embassies, MDAs and in departmental stores across major cities in Nigeria to improve the patronage of these products.”

He noted that the MSMEs sub-sector is a very important sub-sector in the Nigerian economy.

“They collectively account for a majority of the enterprises in Nigeria and also account for the highest number of jobs created in the economy,”  Radda stated.

He said the recent National MSMEs Survey of 2017 conducted by the Agency in collaboration with the National Bureau of Statistics (NBS) revealed that there are 41,543,028 MSMEs, employing 59,647,954 (76.5% of the labour force) and contributing 49.78% and 7.64% to nominal GDP and exports respectively.

The SMEDAN boss said this staggering statistics cannot be ignored in any serious economy, adding properly harnessed, MSMEs can trigger an entrepreneurial revolution in Industrialization, Agriculture and Commerce in Nigeria towards creating the platform for job creation, wealth creation, poverty alleviation and food security.

Dr Radda also said the globalisation process for MSMEs can be realized through any of a range of cross border activities, including trade, international investment, and participation in strategic alliances, partnerships and networking arrangements.

According to him, “governments in both industrialized and developing countries provide a wide variety of programmes to assist micro, Small and Medium Enterprises.”

“Despite the success of MSME strategies in a few countries, majority of developing countries have found that the impact of their SME development programs on enterprise performance has been less than satisfactory, as such there is the need to develop and deploy more specific approaches, hence the SMEDAN SELECT initiative.” 

Dr Radda stated that the objectives of implementing SMEDAN SELECT are to increase access to local, regional and global markets for MSMEs; to support market expansion for MSMEs. to support the creation of brand names for Made-in-Nigeria products as well as to Increase awareness creation on standard Made in Nigeria products.

He however encouraged Nigerians to patronize all the products profiled as a way of supporting the MSMEs to achieve their collective goal of instituting the MSMEs sub-sector of our dream that would contribute significantly to job creation, wealth creation and poverty alleviation.

SOURCE: VON