The Chairman, Senate Committee on Industries, Senator Adetokunbo Abiru, yesterday organised a capacity development training for 1,000 Micro, Medium and Small Enterprises (MSMEs) in Lagos East Senatorial District.
Abiru, an accomplished banker, said the training was to enhance the capacity of micro, medium and small business owners in the district to scale their businesses, adding that lack of capacity had been identified as one of the major reasons MSMEs failed
The one-day MSME clinic/workshop, organised in conjunction with the Fate Foundation, was attended by major figures in the MSMEs ecosystem like the Managing Director, Bank of Industry, Mr. Olukayode Pitan, officials of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Standard Organisation of Nigeria (SON) and renowned business consultants.
Highlighting the critical roles MSMEs play in the nation’s economic development, the senator said: “MSMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90 per cent of businesses and more than 70 per cent of employment worldwide.”
He added: “Formal SMEs contribute up to 40 per cent of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. The latest SMEDAN/NBS MSME Survey indicates Nigeria’s SMEs contribute nearly 50 per cent of the country’s GDP and account for over 80 per cent of employment in the country.
“It has been projected by the World Bank that about 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. In emerging markets, most formal jobs are generated by SMEs, which create seven out of 10 jobs.”
Abiru said it was therefore instructive to assist the struggling businesses, who were mostly impacted by the devastating COVID-19 pandemic with workable business solutions in the new normal world.
He said that the knowledge pack, a combination of seven books written by foremost experts, which participants got for free, are reference materials for now and in future, adding that their contents are the secret of success of most major businesses.
A one-time Commissioner for Finance and Governance Advisory Council (GAC) member, Olawale Edun, hailed Abiru’s gesture, describing the business aid as a great initiative.
Also, a former Minister of Works, Senator Adeseye Ogunlewe, urged other elected public office holders to learn from the giant strides of Abiru.
The ex-minister, who accompanied Senator Abiru on touring business clinic consulting desks, advised participants to place a premium on the knowledge they had acquired in the course of the workshop and business clinic.
“These materials are authored by the following foremost hands on world acclaimed professional firms with deep insights on the Nigerian business environment.”
To the admiration of participants and dignitaries that graced the occasion, the senator announced the launching of N100,000,000(One hundred million Naira) soft business loan support trained MSMEs with working capital, as well as asset finance for equipment acquisition at a highly subsidised interest rate.
The N100 Million constituency intervention revolving facility, which be executed in partnership with Small and Medium Enterprises Development Agency, SMEDAN, has minimum limit of N100,000 (One hundred Thousand Naira) and maximum of N1,000,000 (One million naira) with as low as 6 per cent interest rate with flexible repayment plan from one to 12 months starting from Q1, 2022. The senator mulled plans to increase the revolving facility in the same sum on a yearly basis.
The Bank of Industry (BOI) also agreed to commit an additional 100,000,000(One Hundred Million Naira) to the scheme.
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