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

by with No Comment Business

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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FBN QUEST

FBNQuest Recommends Commercial Papers and Bonds as Stable Funding Sources for SMEs and Corporates

by with No Comment Businessfinance

FBNQuest Merchant Bank, the investment banking and asset management group of FBN Holdings Plc, is recommending commercial papers and bonds to corporate issuers seeking to raise working capital, expansion capital, refinance expensive debt and better match their cash obligations with revenues.

READ ALSO: Mastercard To Buy Digital ID Firm Ekata For $850m

Speaking at the latest edition of the”Leading Conversations with FBNQuest” webinar series, Oluseun Olatidoye, Head Capital Markets, FBNQuest, noted that many companies do not take advantage of Nigeria’s growing commercial paper and bond market to access stable funds that match their capital needs.

“Even though interest rates have trended higher in the first quarter of this year, there is still significant scope for many companies to access cheaper and more stable funding from investors who are seeking well-run businesses with predictable cashflows to invest in” said Olatidoye.

The webinar with the theme ‘Funding through Commercial Papers and Bonds’ was hosted to engage corporates and investors on the opportunities within issuing and investing in commercial papers and bonds.

Other speakers included Sumit Jain, Senior Executive Director at Valency International, a leading food ingredient supply chain company. He echoed the sentiment about the benefits of issuing commercial papers.

“We believe that corporates can lower the interest paid on bank debts by up to 4 percentage points by issuing commercial papers. Loans also offer other tremendous benefits in the current macroeconomic environment” said Sumit Jain.

Nigeria’s capital market has recorded a flurry of corporate commercial papers and bond issues since a sharp decline in interest rates in the third quarter of 2020. “We think the market conditions have just cast the spotlight on a financing option that discerning companies should consider.

We look forward to working with our clients to navigate the process to issuing CPs and bonds and therefore unlocking the efficiency and convenience that these instruments offer” stated Olatidoye. 

As a leading investment banking institution, FBNQuest has advised on the issuance of several commercial papers transactions for organisations such as Valency Agro Nigeria Limited, Mixta Real Estate plc, Dangote Cement plc, Nigerian Breweries plc (NB), Lafarge Africa plc, Flour Mills of Nigeria plc (FMN), Wema Bank plc, and UACN Property Development Company plc (UPDC) to mention a few. 

These transactions add to the organisations impressive portfolio of organisations it has supported, and once again highlights its capabilities in the successful execution of sizeable capital market and commercial debt transactions.

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SON

SON Plans Pact To Train SME’s On Standard Products

by with No Comment Business

SON Plans Pact With Kwara Govt, To Train SME’s On Standard Products

In a quest to promote Small Scale Industries and businesses, the Standard Organization of Nigeria, SON, is set to sign a memorandum of understanding with the Kwara State government to educate small scale industries on standard products.

READ ALSO: FIRS: States Mull Digital Tax Technology As Revenue Shortfalls Hit 40%

The Governor of Kwara State Governor, Mallam Abdulrahman Abdulrazaq said manufacturing is an important means of reducing unemployment in Nigeria, and his State is set to partner SON in this regard.

Receiving the Director-General of Standard Organization of Nigeria, Farouk Salim, the Governor said manufacturers should receive more support to make international standard products, thereby boosting exports and creating jobs.

Stressing further, the governor said the present administration would encourage small and medium scale businesses in the state and partner SON to uphold standards.

DG, SON, Salim, said he was in the state to launch the organisation’s new multi-million naira office complex and inspect some manufacturing companies in the state.

The DG however appealed to the state government to provide supportive infrastructure manufacturers and other businesses in the state.

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Business recovery

Business recovery interventions SMEs should explore

by with No Comment Business

POST-COVID business recovery interventions SMEs should explore in 2021

There is no gainsaying what the coronavirus pandemic did in global socio-economic realities. What is also irrefutable is that small business have been the worse hit amongst the victims’ rollcalls.

READ ALSO: The great Crypto sell-off, external reserves continue upward trend

Beyond the economic uncertainty challenging a sustainable business environment, there was also the ravaging impact of the pandemic on healthcare that slowed productivity, hampered manpower and piled pressure on the unemployment scourge.

A steadily rising inflation now peaked at over 18% in April 2021, coupled with an economy that dipped into recession and back, acerbated by violent civil unrest and insecurities that slowed pan-Nigerian logistics, the Nigerian small business proponents have experienced a perfect storm.

According to the Nigeria Bureau of Statistics (NBS), Small and Medium Scale Enterprises (SMEs) remain critical to the country’s economy, contributing about 48% of the national GDP in the last five years and accounted for 84% of the national workforce.

Despite these contributions to the Nigerian economy, SMEs continue to face growth-hampering challenges such as lack of access to funding, skilled human resources, high cost of doing business, among others. These existing conditions already posit a challenging environment for SMEs to thrive; the pandemic’s entry into the equation will surely heighten their difficulties and slow their capacity to bounce back from this economic pandemic.

According to a survey by FATE Foundation and Budgit on the impact of COVID-19 on Nigerian on small businesses, 94.3% said the pandemic adversely disrupted their operations. 72.2% said the pandemic impacted their cash-flow; 67.8% said their sales went south, and 59.2% said their revenue took a hit.

In tackling what may be the most challenging global health and economic crises of our time, the instinctive response would expectedly tilt towards immediate needs such as health, food, security, and jobs. However, there is an urgent need to prioritise interventions for the SME sector – the backbone of major developing economies.

We have identified three existing business interventions that SMEs in Nigeria should leverage to recover from the pandemic’s overwhelming effect. These interventions and programmes include:

  • The Federal Government MSME Survival Fund: A couple of months ago, the FG launched the Survival Fund Programme targeted at individual artisans and small businesses. The Survival Fund Programme (www.survivalfund.gov.ng) is part of the Economic Sustainability Plan, which aims to support and protect businesses from the potential vulnerabilities brought by the COVID 19 pandemic.The programme categorised into Payroll Support, Guaranteed Offtake, and MSME grant, is designed to provide a cushioning effect to business owners’ pain points. With the Payroll Support, business owners are assisted in paying employees; the Guaranteed Offtake helps businesses kickstart or rebuild, while the MSME Grant provided free funding for badly hit MSMEs. The programme is opened to any Nigerian with a running business (either registered or not registered).
  • LSETF MSME Loan Programmes: The Lagos State Employment Trust Fund (LSETF) was established with a core mandate to tackle unemployment, promote job creation, entrepreneurship, and skills development in the state. The Loan Programme, one of its intervention vehicles, provides access to affordable funding for small business entrepreneurs. 

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Akinkugbe_Business-Series

UBA BUSINESS SERIES TO EQUIP SMES WITH PERFORMANCE MANAGEMENT STRATEGIES

by with No Comment BusinessFeatured

UBA BUSINESS SERIES TO EQUIP SMES WITH PERFORMANCE MANAGEMENT STRATEGIES FOR ORGANISATIONAL GROWTH

READ ALSO: Federal Government Denies Printing N60bn To Share In March

As part of its commitment to support the growth and sustainability of Micro, Small and Medium-scale Enterprises (MSME) in the continent, Pan African financial Institution, United Bank for Africa (UBA) Plc, is set to organise the next edition of its UBA Business Series.

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.

The topic for the next edition of the series  is ‘ Managing Performance for Business Growth,’  and it will be held on Wednesday, April 14, 2021 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.

The capacity building event is a virtual session which is open to all – including business owners and leaders – and will be held on Wednesday, April 14 th, 2021, at 2pm WAT. Interested participants can register via  http://bit.ly/UBASMEWorkshopMarch2021

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’.

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MSME

Regulate SMEs with human face, CEO urges govt

by with No Comment Business

Chief Executive Officer, CEO of a leading multipurpose investment organisation, Blue Diamonds, Mr. Raphael Chukwujekwu, has stated that only regulation with a human face can create an enabling environment for small and medium businesses SMEs to thrive in the country.

READ ALSO: Nigerian economy: We are in huge financial trouble – Obaseki

Mr. Chukwujekwu who made this remark at the in Abuja at the unveiling of a new product, Smart Blue Money Mobile App, advised government at all levels not to introduce counter-productive regulations capable of stifling small businesses and killing young people’s initiatives.

According to Chukwujekwu, government can make the environment business-friendly such that small businesses would be able to grow, adding that part of the activities of Blue Diamonds is to provide project financing to young people with viable SMEs plans.

He said the Smart Blue Money Mobile App helps people to save, invest, manage and grow their income with a view to securing their future.

On other benefits of the new product, he said, “In saving money, it creates a certain level of employment opportunities, because there is provision for agency in the app. Through it, people can be gainfully employed by downloading the app and helping people to transfer money, helping people to buy data, buy recharge cards or airtime, pay for cable subscriptions and electricity bills. By so doing, it reduces unemployment and it adds to the nations GDP. ”

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GDP

SMEs better Nigeria’s GDP by 50%, create 80% jobs

by with No Comment Business

The Minister of State for Industry, Trade and Investment, Ambassador Mariam Katagum has said small and medium enterprises (SMEs) contributed over 50 per cent to Nigeria’s Gross Domestic Product (GDP) and accounted for 80 per cent of employment in recent years.

READ ALSO: CBN advances loans to MSME at single digit

She stressed that the sector had become engine of economic growth and development, job creation and exports besides aiding poverty and unemployment reduction across the federation. She spoke at the 27th National Micro, Small and Medium Enterprises Clinic in Gombe State.

In a statement signed by the ministry’s Assistant Director, Information, Oluwakemi Ogunmakinwa, the minister added: “With the above figures in mind, it is, therefore, very clear that supporting small businesses by creating opportunities for SMEs to thrive is essential for increasing productivity, creating jobs and boosting our economy. That means making every effort to supporting them so that they can grow. This is why government is working with stakeholders across sectors to ensure that SMEs have the support they need to grow now and in the future.”

She stressed that the sector had become engine of economic growth and development, job creation and exports besides aiding poverty and unemployment reduction across the federation. She spoke at the 27th National Micro, Small and Medium Enterprises Clinic in Gombe State.

In a statement signed by the ministry’s Assistant Director, Information, Oluwakemi Ogunmakinwa, the minister added: “With the above figures in mind, it is, therefore, very clear that supporting small businesses by creating opportunities for SMEs to thrive is essential for increasing productivity, creating jobs and boosting our economy. That means making every effort to supporting them so that they can grow. This is why government is working with stakeholders across sectors to ensure that SMEs have the support they need to grow now and in the future.”

She explained that government’s efforts were also geared at enhancing the competitiveness and quality of services rendered by SMEs aside positioning them to compete favourably with their counterparts globally.

Katagum pointed out that there is a compelling need for every state and council to identify areas of comparative advantage, particularly in agriculture and other resource endowments, and build competencies for food sufficiency and export, adding that “it is particularly more pressing, considering that trading under the African Continental Free Trade Area (AfCFTA) commenced on January 1, 2021.”

The minister reiterated the commitment of the Federal Government to the empowerment of Nigerians, especially in the era of the COVID-19 pandemic.

To show seriousness, she said the Economic Sustainability Committee had announced specific programmes to cushion the adverse impacts of the virus on businesses.

Katagum, who doubles as chairperson of the scheme, enumerated the initiatives to include survival fund and guaranteed off-take programmes managed by a steering committee in the ministry.

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AXA

AXA Mansard Promotes SMEs in Nigeria; launches Business Insurance Plan

by with No Comment Business

In line with company’s strategy of fostering the growth of Small and Medium Enterprises in the country, AXA Mansard Insurance PLC, a member of the AXA Group and global leader in insurance and asset management, wishes to announce the launch of its ‘Business Insurance Plan’.

READ ALSO: ITF to Train Seven Million on Agric, Construction, Others

The official launch of this product took place on the 25th of March 2021 at AXA Mansard’s office at Ozumba Mbadiwe Road, Victoria Island.

The Business Insurance Plan (BIP) is a one-stop insurance solution that addresses the business risk exposures of small and medium enterprises. It is a pot-pourri of highly beneficial insurance risks management solutions bundled together. These solutions include Business Content, Group Personal Accident, SME Life, Health Care, Public Liability, Optional Covers, Professional Indemnity, Comprehensive Motor, Stock and General Conditions.

Every business comes with a certain amount of risk. Although pitfalls and challenges cannot be avoided, but they can be mitigated with the proper precautions, planning, and Insurance coverage. These risks and pitfalls are what the Business Insurance Plan seeks to address.

The BIP is available for purchase seamlessly on the company’s transaction website. www.axamansard.com. Purchases can also be made through sales agents and at any of our offices nationwide.

Speaking at the event, the Chief Executive Officer of the company, Mr Kunle Ahmed stated, “Our aim is to deliver the appropriate solutions for small to medium enterprises at a competitive price. It is our expectation that this product will enable the SMEs hedge the risks they face and focus on strategizing and growing their businesses knowing that they are protected.”

With 17.4 million SMEs in Nigeria, the role they play in the growth & development cannot be overemphasized. They are a significant force in reducing unemployment and accelerating GDP growth. We are therefore very excited to be able to provide this innovative solution that ensures they continue to thrive.

The Chief Client Officer, Mrs Rashidat Adebisi stated that “the driving force behind the development of this product is AXA’s purpose which is to “Act for human progress by protecting what matters”. At AXA Mansard, we care about people and their businesses, therefore we constantly listen, think and innovate.”

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SMEDAN

SMEDAN opens N5m loan application portal for SMEs

by with One Comment Business

The Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, says it will open its portal Tuesday for receiving applications from small business owners for N1.2 million to N5million loans.

READ ALSO: MTN EnGauge Platform Unveils to Transform SME Business Transactions

The Director-General and Chief Executive Officer of SMEDAN, Dikko Radda, in a statement issued by the Corporate Affairs Unit of the Agency, said the loans would be funded from the SMEDAN-BOA Matching Fund Programme for small businesses.

Mr Radda said the opening of the programme portal would be a promotional intervention meant to deliver credit to the small businesses to enhance enterprise output, competitiveness and jobs creation.

He also stated that the disbursing entity, under the programme, shall be the Bank of Agriculture, BOA.

“Target beneficiaries for this programme shall be labour-intensive micro or small enterprises (MSEs), operating in the real sector.

These shall ideally be innovative value-added products that are establishing footprint in the Nigerian market, and require additional funds to increase output,” the Director General said.

He, therefore, called for applications from all suitably qualified micro, small enterprises located in the Federal Capital Territory, FCT, Kaduna and Oyo states to apply for the programme.

Mr Radda added that prospective beneficiaries, who must be registered with SMEDAN, would get the loans on business-friendly terms, including waiver of collaterals.

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