unesco

MSMEs Contribute Over 50% Of Nigeria’s GDP, 80% Employment ― FG

by with No Comment Businessfinance

The Federal Government (FG) has reaffirmed that Micro, Small and Medium Enterprises (MSMEs) contributes nearly 50 per cent of Nigeria Gross Domestic Product (GDP) and 80 per cent of the country’s total employment.

READ ALSO: FG Urges Women Entrepreneurs To Apply For MSMEs Survival Fund Scheme

Speaking virtually at the 7th EMPRETEC Global Summit with the theme “The Role of Entrepreneurship, MSME and EMPRETEC in post-COVID-19 Resurgence, the Federal Minister of State for Industry, Trade and Investment of Nigeria, Amb Mariam Katagum said the government had rolled out various interventions to reposition MSMEs for increased and sustained contribution to the national economy.

“As we are all aware, the MSME sector is the engine of growth of any economy, contributing to its development, job creation and export, amongst others.

“An MSMEs survey indicates that Nigeria’s SMEs contribute nearly 50 per cent of the country’s GDP and account for over 80 per cent of employment. No doubt, the sector is pivotal to Nigeria’s growth, including reducing poverty and unemployment levels.

“It has, therefore, become more apparent that supporting entrepreneurs and small businesses by creating opportunities for MSMEs to thrive is essential for increasing productivity, creating jobs, and boosting our economy.

“This is why Government is working with stakeholders across all sectors, to create the enabling environment for entrepreneurs and MSMEs to ensure that they grow now and into the future,” the Minister stated.

According to a statement by Oluwakemi Ogunmakinwa, Katagum said “the Government of Nigeria had, prior to the outbreak of COVID-19, initiated the MSMEs Clinics’ scheme as a strategy, aimed at providing support for the MSMEs in the country.

“At the clinics, which is organised in various states of the country, operators in the MSMEs space are engaged by regulators and business advisory experts, on issues ranging from entrepreneurship, skill development, finance, quality & standards, and on how to facilitate and grow their businesses and enterprises.”

The Minister further stressed that in order to achieve sustainable growth and development of MSMEs, the Federal Government had recently approved the revised National Policy on Micro, Small and Medium Enterprises (MSMEs) which would provide the framework to resolve the challenges faced by the sector.

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SMEDAN MSMES

SMEDAN To Protect Intellectual Property For MSMEs

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The Director General/ Chief Executive Officer of Small and Medium Enterprises Development Agency Nigeria SMEDAN, Dr Dikko Radda has said that the agency would protect intellectual property for the Micro, Small and Medium Enterprises sector of the economy.

READ ALSO: Access Bank Acquires 78.15% Stake In Atlas Mara Subsidiary

He stressed on the need for SMEs to be sensitised on the importance of Intellectual Property to enhancing the value of their enterprises.

Radda, who made call during a world press conference to commemorate the 2021 World Intellectual Property Day , a brainchild of the World Intellectual Property Organisation in Abuja, lamented that most Small and Medium Enterprises, across the country are not aware of the importance in enhancing the value of their products, services and processes.

He also urged relevant agency with the statutory function in the administration of IP to be easily accessible by moving closer to the SMEs.

He gave examples of intellectual property that would be protected to include music, literature, and other artistic works; discoveries and inventions; and words, phrases, symbols, and designs among others.

He further explained that under the intellectual property laws, owners of intellectual property are granted certain exclusive rights.

He described intellectual property as a key consideration in day to day business decisions as new products, brands, creative designs appear almost daily on the market and are result of continuous human innovation and creativity.

Radda said, “SMEs are often the driving force behind innovations. However, their innovation and creative capacity is not fully exploited as many SMEs are not fully aware of the intellectual property system.”

He identified one of the challenges facing MSMEs to include lack of awareness as most of them ar not aware of the importance of intellectual property in enhancing th value of their products, services and processes.

The SMEDAN Boss also said costs associated with IP protection may deter SMEs in taking the initiative protecting their intellectual property

In his remarks, the Ag. Head, World Intellectual Property Organisation Nigeria office , Mr Oluwatobiloba Moody said at a time when the imperative of economic recovery in Nigeria is high, particularly in the light of global pandemic, the WIPD 2021 provides an important moment to shine a light on the critical role of SMEs in Nigeria.

Moody said SMEs are the backbone of Nigeria’s economy, adding that they deliver the goods and services Nigerians need everyday.

DG SMEDAN also said MSME hatch breakthrough innovations and inspiring creations that have job creation potentials.

He said globally, SMEs make up about 90 per cent of the world’s businesses, employ around 50 percent of the global workforce and generate up to 40 percent of national income in many emerging economies.

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UBA

UBA Organises Capacity Building Forum

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As part of its commitment to support the growth and sustainability of micro, small and medium-scale enterprises (MSME) in the continent, the United Bank for Africa (UBA) Plc, is set to organise the next edition of its UBA Business Series.

READ ALSO: Senate Summons NICON, AIICO, Others

The UBA Business Series which is a monthly event, is an MSME Workshop as well as a capacity building initiative of the bank where business leaders and professionals share well-researched insights on best practices for running successful businesses, especially in the face of the difficult operating environment that dominates the African business landscape.

Through this initiative, UBA has been assisting with essential tips to help businesses re-examine their models and strategies and ensure that they stay afloat and remain thriving, a statement from the bank explained.

The topic for the next edition of the series is, “Managing Performance for Business Growth,” and it will be held today, via Microsoft Teams.

At this session, the Managing Director, Secure ID Limited, Mrs Kofo Akinkugbe, will be sharing useful tips and insights on the key strategies of performance management to boost business growth.

Akinkugbe is the founder of SecureID Nigeria, a MasterCard, VISA and Verve certified Smartcard Personalization Bureau and Digital Technology company. She currently serves as the Managing Director/CEO, Secure Card Manufacturing, – a Smartcard manufacturing plant producing high security identity cards and documents for the Banking, Telecoms and Public sectors across Africa and beyond.

UBA’s Head, SME Banking, Sampson Aneke said of Akinkugbe, “with her vast experience garnered over the years from various sectors, she will help business owners understand how performance management strategies can be effectively implemented to ensure business growth.”

He emphasised UBA’s commitment and deep passion for small businesses, which according to him, remains the engine of any developing economy adding, “We know small businesses are the backbone of the economy in every country. In many climes, businesses with fewer than 100 employees account for 98.2 per cent of all businesses. This no doubt captures the importance of SMEs to a thriving economy which is why UBA is committed to seeing them flourish.”

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Ogun

Ogun to launch MSMEs development fund

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Ogun State Governor, Prince Dapo Abiodun, on Tuesday declared that the Micro, Small and Medium Enterprises (MSMEs) Development Fund to provide easy credit facilities, will soon be launched in the state.

READ ALSO: Inflation: T-bills 8% return fails to shield investors

The governor equally disclosed that innovation fund for tech-based MSMEs in the state will be launched with the view to encouraging and promoting the digital economy.

Abiodun, who said these while declaring open the 10th Gateway International Trade Fair, noted that the trade fair has grown beyond just a meeting point for business communities, but a veritable platform that affords operators of MSMEs, manufacturers, businessmen and women, managers of corporate organizations and the government.

He added that it was also an opportunity to come together and showcase locally-made products and services, saying the avenue provides a unique opportunity to cross-fertilize ideas; explore new business innovations and make credible business contacts.

Abiodun, however, said that the state has started developing MSMEs clusters across the state that will be provided with full infrastructure of roads, drainage, power, fibre optics, which will be offered at attractive pricing and flexible payment terms to further encourage to and provide incentives for business operators.

The governor further reiterated his administration’s commitment towards the promotion of a private sector-driven economy, industrial development, investment-friendly environment, commercial activities and empowerment and promotion of MSMEs in the State.

“We will soon be launching the Ogun MSMEs Development Fund geared towards providing easier credit facilities. We will also be launching an innovation fund for Tech-based MSMEs. We will continue to be deliberate and methodical in our approach to support our resource-based industrialization of Ogun State.

“Ogun State is the largest industrial hub in Nigeria, we are determined to uphold this position.

No doubt, the theme for this year’s Fair: ‘Transforming Agriculture and Commerce in a Highly Competitive Global Market’ at this trying period could not have been more appropriate.

It is coming at a time when we are all working hard towards diversifying Nigeria’s economy from our over-reliance on the oil sector by developing other sectors such as agriculture, trade and manufacturing.

“The hosting of this Trade Fair is one of our many initiatives toward improving the Ease of Doing Business and in turn promote investment in our state.

Our administration is irrevocably committed to the industrialization of Ogun State and making the State a truly investors’ first-choice destination, not only in Nigeria but in Africa”. The governor stated.

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MSMES

CBN advances loans to MSME at single digit

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The Central Bank of Nigeria (CBN) says it will continue to provide opportunities for Micro, Small and Medium Enterprises (MSMEs) to access loans without difficulty at single-digit rate as part of efforts to entrench a vibrant economy.

READ ALSO: NNPC Signs $1.5bn PH Refinery Rehab.

Samson Isuwa, the Nasarawa State controller of the apex bank, stated this at the opening of a three-day Nasarawa Entrepreneur Boot-camp in Lafia, the state capital.

According to Samson, CBN has remained consistent in initiating loan schemes covering agriculture, the entertainment industry, small scale business owners, among others at a single-digit interest rate to achieve Federal Government’s drive to economic prosperity.

He said interest rate for small scale businesses was at the moment 7 percent, adding, however, that this would soon rise to 9 percent to address the prevailing economic challenges.

He maintained that, henceforth, CBN would insist on only genuine business owners benefitting from such loans.

He said those collecting loan without utilising for the purpose it was meant would be denied the opportunity. He described the workshop for entrepreneurs as apt and advised participants to seize the opportunity to develop business strategies that would add value to their economic status.

Nasarawa commissioner for commerce, trade and investment, Obadiah Boyi said the loan would complement the effort of the Nasarawa entrepreneurs by encouraging them with all the necessary support required for SMEs to succeed in the state.

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MSME

45% of N75bn MSMEs survival fund provided for women owned businesses

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About 45 %2 of the N75bn MSMEs survival fund has been made available for women owned businesses.

READ ALSO: FG disburses MSME Survival Fund to tailors

This was disclosed by the Minister of State for Industry, Trade and Investment, Amb. Mariam Katagum, in Abuja.

Katagum disclosed that over 45 percent provision have been made for women owned businesses in the N75 billion Micro, Small and Medium (MSMEs) survival fund made available for businesses in Nigeria by the Federal government to cushion the impact of COVID-19 in the country.

Speaking at the signing of the Memorandum of Understanding (MoU) between Organization of Women in International Trade (OWIT) and the Nigeria Entrepreneurs Forum (NEF), Amb. Katagum said the intervention fund was targeted at giving support to businesses that have suffered due to the pandemic.

“The N75 billion MSME Survival Fund and Guaranteed Off take Scheme are part of Economic Sustainability Plan (ESP) designed and developed by the Federal Government to cushion the impact of the COVID-19 Pandemic on the economy, specifically targeted at providing succour to the MSMEs sector which has experienced the most adverse effect of economic disruptions caused by the Pandemic.

“The implementation of the scheme which has received commendation by stakeholders across the country has provision for 45 per cent female-owned businesses,” she stated.

The Minister Applauded the organizers for the “efforts towards actualizing this event which provides an avenue for the development of MSMEs especially among women.

“The critical role MSMEs play in the development of the national and global economy in terms of employment generation and contribution to Gross Domestic Product (GDP) cannot be overemphasized.

“It is in recognition of this that the Federal Government of Nigeria gives special attention to the growth and development of the MSME sector, with special emphasis on women-owned enterprises.

Represented by the Deputy Director in the department of Industrial Development, Mr John Opaluwa, the Minister stated that “the Federal Executive Council (FEC) has recently approved the revised National Policy on Micro, Small and Medium Enterprises (MSMEs) which provides the framework to resolve the challenges faced by the sub-sector.”

While delivering her welcome address, the President of OWIT, Blessing Irabor, said “OWIT Nigeria is driven by the believe that trade and investment can help Nigeria develop sustainably and inclusively.

“We also know that women and girls have less opportunity, less access to leadership positions, finance, education, information etc.

“However, in the Nigerian world of trade and business, where the gender blind deliverables in trade has strongly contributed to widening the gap of inequalities between men and women at all levels of economic empowerment”, noting that “strengthening coordination on women participation in trade and investment is now Paramount.”

In his remarks, the President of NEF, Sidney Inegbedion, said NEF “is a private sector driven organization whose services have focused on stimulating economic pdevelopment in Nigeria.

“This is why Nigeria Entrepreneurs Forum is partnering with the Organization of Women in International Trade (OWIT). OWIT Nigeria is an active women organization that focuses on trade and business at the local and international levels as a strategy for women empowerment and social recognition,” he stated.

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MSME Tailors

FG disburses MSME Survival Fund to tailors

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The Federal Government has commenced the disbursement of its Micro, Small, and Medium Enterprises, MSME, Survival Fund to tailors, artisans in Lagos State.

The Special Assistant to the President on MSMEs/DFIs, Tola Johnson, said so far in the Bariga cluster alone, over 400 people had benefitted from the scheme, with11other clusters approved last week.

READ ALSO: MSME Clinic To be Flagged Off by VP Osinbajo And Pantami

Johnson stated this at the activation of the Artisan Scheme of the MSME Survival Fund by the Bank of Industry in Bariga area of Lagos on Thursday.

He explained that the fund was created to cushion the effect of the COVID-19 pandemic on small businesses in the country, reaffirming the Federal Government’s commitment to supporting MSMEs.

He said, “It is no news that the pandemic affected many businesses and the government in its wisdom thought about how it could support different clusters of people. We have people for the payroll support, the artisan and the transport sectors.

“We also have people that we give money to cushion the effect of the pandemic on their businesses. The Federal Government resolved to support 500,000 people every month for three months, while also supporting 303,000 artisans with N30,000 one-off grant and N50,000 to about 100,000 businesses that have been affected by the pandemic.”

According to him, the government will carry out monitoring and evaluation of the fund to ensure that it is disbursed judiciously.

Johnson added, “We are carrying out this programme in phases so that we can learn from the mistakes of the first and correct in the second stream. We are actually trying to monitor to a large extent to ensure that what was approved is what is being done.”

He said a second stream of states was waiting for approval for disbursement.

“For the payroll segment, we will let the public know when we want to commence disbursement. Every state has about 6,600 new business names to be registered for free, but the Federal Government is paying N6, 000 per business to the Corporate Affairs Commission.

The Chairman, National Union of Tailors, Bariga Chapter, Balogun Olatunde, commended the government for supporting small businesses and urged the government to do more.

He said most of the tailors under his jurisdiction were looking for loans to expand their businesses.

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now now

Registration for FG’s MSME survival fund to open Monday

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The federal government has announced that registration for the N75 billion survival fund for micro, small and medium enterprises (MSMEs) will begin on Monday, September 21.

READ ALSO: CardinalStone’s West Africa SME Fund Closes at $64M

Mariam Katagum, minister of state for industry, trade and investment, said the programme is aimed at tackling the economic challenges faced by small businesses as a result of the coronavirus outbreak.

Katagum was speaking at the virtual commissioning of the fashion cluster shared facility for MSMEs tagged ‘Eko Fashion Hub’ in Lagos on Friday.

Katagum explained that the programme, which would run for an initial duration of three months, would be opened for 1 .7 million entities and individuals across the country.

“The federal government is fully committed to empowering Nigerians; more so in the face of the COVID-19 pandemic,” she said.

“In this regard, the government, through the economic sustainability committee had announced specific programmes aimed at cushioning the impact of COVID-19 on MSME businesses.

“These programmes include among others, the N75 billion MSME survival fund and Guaranteed Off-take schemes of which I have the honour to chair the steering committee for the effective implementation of the projects.

“The project, which will run for an initial period of three months, is targeting 1.7 million entities and individuals and has provisions for 45 percent female-owned businesses and five per cent for those with special needs.”

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FG SMEs

FG to support MSMEs with $1bn syndicated loan

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As part of efforts to boost Nigeria’s economic recovery and sustainable growth, the Bank of Industry (BoI) under the supervision of the Federal Ministry of Industry, Trade and Investment has concluded a $1billion syndicated term loan in conjunction with international partners to further support Small and Medium Scale Enterprises (MSME) in the country.

READ ALSO: BusinessDay with NetPlusDotCom Set to Host March Edition of Monthly Digital Webinar Series for SMEs

Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, said the loan is aimed at “further improving the capacity of the bank to effectively support Micro, Small and Medium Scale Enterprises (MSME) – across key sectors of the Nigerian economy – with affordable loans of medium to long-term tenor, alongside moratorium benefits.”

Adebayo who disclosed this on Monday at the Quantum Mechanics Limited MSME Survival Fund capacity building programme in Abuja, also said discussion were ongoing with Dunn & Bradstreet to establish an SME risk rating agency – the SME Rating Agency of Nigeria (SMERAN), to provide empirical basis  for analysing the eligibility of SMEs to access credit.

The Minister who spoke on efforts of the Federal Government at supporting MSMEs in the country said, “I will like to reiterate that our Ministry fully supports MSMEs, as demonstrated by our MSME Survival Fund Initiative launched in the wake of the COVID-19 pandemic by the Federal Government as part of the Nigerian Economic Sustainability Plan (NESP); aimed at protecting MSME businesses from shocks the pandemic. The Fund comprises the Payroll Support Scheme which aims to support MSMEs in meeting their payroll obligations and safeguard jobs by paying up to N50,000 to a maximum of 10 employees in each MSME for three months; the Artisan and Transport Grant which supports self-employed artisans with a one-off payment of N30,000 targeting 333,000 individuals; the General MSME Grant which will provide 100,000 MSMEs with one-off grants of N50,000 each; and the Guaranteed Offtake Scheme which will engage approximately 100,000 businesses across the country to produce items typically manufactured in their locality, targeting 300,000 beneficiaries, including free registration of companies for 250,000 beneficiaries.”

He explained that the survival fund was estimated to save at least 1.3 million jobs across the country…

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Artisans

FG Set To Give N30,000 Loan To 330,000 Artisans

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FG Set To Give N30,000 Loan To 330,000 Self employed Artisans

Minister of Industry, Trade and Investment, Adeniyi Adebayo disclosed on Monday at the Quantum Mechanics Limited MSMEs Survival Fund capacity building programme in Abuja that the Bank of Industry has secured a $1 billion syndicated loan to support Micro, Small and Medium Enterprises (MSMEs), self employed artisans.

READ ALSO: BOI $1bn loan will improve capacity of MSMEs

Mr. Adebayo, in a statement by his media aide, Ifedayo Sayo, said the loan would improve the bank’s capacity to support MSMEs across key sectors of the Nigerian economy.

“There is an ongoing discussion with Dunn and Bradstreet to establish an SMEs Ratings Agency of Nigeria (SMERAN) to provide an empirical basis toward analyzing the eligibility of SMEs to access credit.

The minister, who spoke on efforts of the federal government to support MSMEs in the country, also reiterated the ministry’s support to MSMEs development as demonstrated by the MSMEs Survival Fund Initiative, launched in the wake of the COVID-19 pandemic by the government as part of its Nigerian Economic Sustainability Plan.

“The fund comprises the Payroll Support Scheme, which aims at supporting MSMEs in meeting their payroll obligations and safeguard jobs by paying up to N50,000 to a maximum of 10 employees for three months.

“The Artisan and Transport Grant supports self-employed artisans with a one-off payment of N30,000 targeting 333,000 individuals,” Mr. Adebayo explained.

He stated further, “The General MSMEs Grant will provide 100,000 MSMEs with one-off grants of N50, 000 each, and the Guaranteed Off take Scheme aims at engaging approximately 100,000 businesses nationwide to produce items typically manufactured in their locality, targeting 300,000 beneficiaries.

“The scheme supports free registration of companies for 250,000 beneficiaries.”

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