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Tag: GDP

  • Financially excluded a minus to our GDP, says SEC

    Securities and Exchange Commission (SEC) has lamented the non-participation of the grassroots in the financial sector, saying this has affected the Gross Domestic Product (GDP) of the country.

    SEC’s Acting Director-General, Ms. Mary Uduk, stated this during its financial inclusion sensitisation programme in Gwagwalada Area Council, Abuja, yesterday.

    Ms. Uduk, who was represented by Head of Investor Education, SEC, Francis Okafor, said the sensitisation programme hopes to enlighten those at the grassroots, and educate them on how to invest in the Capital Market and the financial industry.

    She said the target of the Commission is to ensure that by the end of this year, every area council in Abuja hss been reached.

    “The last sensitisation programme for this year will be held in Abaji Area Council. We want to ensure that by the end of this year, every area council in Abuja is reached.

    “If you buy shares, you are sure to get it back (dividends). Pension is not only for civil servants, but also for business people through the Micro Pension Scheme; that is why we have partnered PenCom.

    “In Kano we talked about commodity ecosystem and non-interest finance. It was quite successful in Kano.

    “Commodity Ecosystem is all about commodities – agricultural products. In the hay days of this country, we had things like the groundnut pyramids etc., today, those thing have died down. Beyond oil, Agriculture is a sector that can bring this country into limelight.

    “We hope to establish and increase commodity exchange that will compete, if not better than what we have today in the stock exchange.

    “A committee has submitted a report on the Commodity Ecosystem; we are currently at the implementation stage.

    “We have partners and collaborators under financial inclusion. We have the Nigeria Deposit Insurance Commission (NDIC), National Pension Commission (PenCom), National Insurance Commission (NAICOM) etc.”

    The apex regulator of the capital market encouraged participants to embrace collective investment schemes like the Esusu and others that are regulated by SEC. Explaining that the Sukuk which is a non-interest finance scheme, is not a purely religious arrangement that excludes everyone else, urging participants to engage it.

    Head of Awareness Unit of Micro Pensions Department of PenCom, Mr. Emeka Onuora, said: “Micro pension is part of the Contributory Pension Scheme (CPS). It is a coverage extension of the CPS.

     

    “We have always placed emphasis on those that are working in government offices under the CPS; this time around, we want to include individuals working on their own. We want to educate them on the need to make provisions for their retirement regardless of whether they are working on their own.

     

    “For the Micro Pension Scheme (MPS), you have to be registered to get started just like you get registered under the CPS with Pension Fund Administrator (PFA).

     

    “When it comes to making payments (contributions), you can use your phones, ATM cards, USSD, banks, etc.

     

    “For the Micro Pension Scheme, you are not compelled on the amount you have to pay or the frequency of payment. You can pay in daily, weekly or monthly.

     

    “The MPS has incentives such that you have access to a certain percentage of your contributions for everyday expenses; this amounts to 40%. The other 60% is kept for your pension and is being invested by the Pension Fund Administrator so that when you retire, you are guaranteed your pension.”

  • PenCom eyes 10% pension assets’ contribution to GDP

    The National Pension Commission (PenCom) yesterday said it is putting in place measures that would raise the contribution of pension funds to the country’s Gross Domestic Product (GDP) from five per cent presently, to about 10 per cent by next year.

    The Acting Director-General of the Commission, Mrs. Aisha Dahiru-Umar, who stated this in a chat with  journalists yesterday in Abuja, said the cut of over N3 billion from the amount budgeted to offset the backlog of pension benefits to retirees by the National Assembly, is affecting the payment of accrued benefits to retirees from Ministries, Departments and Agencies (MDAs).

    The said the payment was meant for accrued benefits of the retirees in the MDAs, adding that the accrued rights were part of the pension benefits due to employees prior to the introduction of the Contributory Pension Scheme (CPS). Sais the CPS has facilitated a pool of pension funds that stands at N8.3 trillion as at June 2018.

    “As you have rightly noted, there are enormous potential for growth of Nigerian pension funds to account for a significant proportion of the GDP.

    “Indeed, the commission’s ongoing strategy implementation, aims at attaining an increase in the ratio of pension funds to GDP to at least 10 per cent by 2019,” Dahiru-Umar said.

    She said some of the measures being put in place to achieve the target, include firstly, the expansion of coverage of the CPS to the underserved economic sectors through micro pension and renewed enforcement of compliance.

    Mrs. Dahiru-Umar said: “Our objective in this direction is to attain at least 20 million contributors by the year 2019. Secondly, we seek to grow the assets through more investments in variable income instruments that generate higher returns.

    “In order to achieve this, we have commenced implementation of the multi-fund structure in July 2018, which segregates the funds based on the risk profile of contributors and gives them an opportunity to choose, subject to age parameters.

    “Furthermore, the increase in contribution rates in the Pension Reform Act 2014, from a total of 15 per cent, to 18 per cent, comprising 10 per cent by employer and eight per cent by the employee, would also increase the size of pension funds when fully implemented for treasury funded federal government’s MDAs.”

    In addition, she said the commission has also intensified efforts at ensuring the payment of all outstanding pension liabilities, including accrued pension rights, and pension increases that were yet to be implemented.

    “The industry is already leveraging information technology (IT) to deliver better services to the contributors and retirees. The Pension Fund Administrators have been expanding their branch networks in order to ease customer interface, while the Commission has been operating its zonal offices in each of the six geo-political zones of the country.

    “We are also intensifying efforts at ensuring the adoption and implementation of the CPS by all the states in the federation. Other measures include a wider public enlightenment and education of the CPS in order to attract a wider participation,” he said.

     

    Meanwhile, Dahiru-Umar stressed that the cut of over N3 billion that was in the 2018 Appropriation Bill prior to its assent by the president would affect the payment of retirees’ benefits.

    She explained, “As at today, there are outstanding arrears for retirees from May, 2017. The commission would continue to engage all the relevant stakeholders such as the National Assembly, the Presidency, Budget Office as well as the Federal Ministry of Finance to ensure that all the Accrued Rights and other pension liabilities are paid.

    “We are also aware that efforts are being made to accommodate the outstanding liability in the supplementary budget so as to bring succour to teeming Federal Government’s retirees who are currently waiting for the payment of their retirement benefits.”

    She said the outstanding amount for Federal Government employees had been communicated to the government and in previous times, what was appropriated; it was short of the amount advised.

  • Ambode calls for private sector participation to boost water transportation, GDP

    Lagos State Governor, Mr Akinwunmi Ambode has expressed his administration’s commitment to provide critical infrastructure and enabling environment for investors and the private sector to participate in the ongoing efforts to boost water transportation in the state.

    Ambode made the promise at a Roundtable on Water Transportation organised by the State Government under the auspices of the Ministry of Transportation which held at Eko Hotels and Suites, Victoria Island.

    The governor said he wants the private sector to own the state economy because that is the only way to grow the Gross Domestic Product, GDP of the state.

    Critical stakeholders/strategic partners who were part of the Roundtable include: United Passengers Waterways Association; University of Lagos; The Good Beverage Recycling Alliance; United States Mission in Nigeria, Trade and Investment Department of British High Commission, South Africa government, Paramount Maritime Holdings of South Africa etc.

    Ambode said though the water transportation sector had been left unattended to over the years it, however, remains critical to solving the traffic congestion problem affecting the State.

    According to him, “The question to ask is what has brought us to this despicable situation so to speak where the only mode of transportation for over 22million people is road and the road itself is chaotic. In the last three years, we have been fighting traffic and unfortunately in the last two weeks, we have seen what has happened in Apapa and what we have been trying to do. Just about three weeks ago, we saw what happened with regards to the Otedola Bridge disaster and then the carnage, as well as the inability of government to provide for the needs of the people.

    “So, among the over 22 million people, almost 8 million are walking on the streets every second and at the same time, 86 people enter into Lagos every one hour according to United Nations statistics for 2016 which is the largest in the world. So, if other states are failing, more people are going to be coming to Lagos and that means maybe right now, there are 120 people entering Lagos not wanting to go back and the only mode of transportation we have for them is just the road and that is why we are coming up with other modes”, said Governor Ambode.

    While reeling the benefits of water transportation especially to traffic management, the Governor said it was instructive to note that being surrounded by water, many parts of the State could be connected within few minutes.

    Earlier, Commissioner for Transportation, Mr Ladi Lawanson said the essence of the roundtable was to evolve effective framework in partnership with the private sector and relevant stakeholders to play up water transportation in Lagos with the view to diverting a lot of pressure currently on the roads to water.

     

  • Kenya’s fiscal deficit to drop to 5.7 % of GDP

    Kenya’s budget deficit is expected to drop to 5.7 per cent of GDP in its 2018/19 (July-June) fiscal year from 7.2 per cent this fiscal year, budget estimates sent to parliament by the Treasury, showed on Monday.

    Read Also: Kenya opposition figure Miguna deported again

    The East African nation has been under pressure from bodies such as the International Monetary Fund to cut its gaping budget deficit.

    The deficit peaked at 9.1 per cent of economic output in the 2016/17 fiscal year.

    NAN

     

  • SGF commends motor dealers N400bn to nation’s GDP

    The Secretary to the Government of the Federation (SGF), Mr Boss Mustapha, has commended motor dealers in the country, for contributing N400 billion to her Gross Domestic Product (GDP).

    Boss gave the commendation on Friday in Abuja in a statement by Mr Lawrence Ojabo, Director of Press, Office of the Secretary to the Government of the Federation.

    The SGF spoke when he received a delegation of the Association of Motor Dealers’ of Nigeria (AMDON), led by the National President, Mr Ajibola Adedoyin, in his office.

    He thanked the association for also reducing the rate of unemployment and encouraging economic diversification.

    “Your annual turnover of N400 billion is a welcome development in this administration’s drive for economic diversification away from oil.

    “I commend you for the many multiplier effects of your business, which provided the citizens with access to the needed vehicles,” the SGF said.

    The national president of the association solicited for waiver on customs duties on imported vehicles by the members.

    Adedoyin said that the association would reorganise its structure and business outlets as well as review its membership, to help reduce crimes and contribute to economic development.

    NAN

     

     

     

  • Recycling to contribute $400b to global GDP

    The President of Bureau of International Recycling (BIR), Ranjit Baxi, has said the benefits of recycling are immense.

    Baxi, who spoke last Sunday, in London, the United Kingdom, during the first-ever “Global Recycling Day”, noted that the recycling industry provides two million jobs; saves 70 million tons of carbon emissions annually; reduces waste; promotes health and hygiene, and is projected to add $400 billion to the global gross domestic product by 2025.

    According to the BIR President, because recycling plays such a crucial role in the preservation of the planet, this necessitated the coming together of stakeholders on Global Recycling Day to showcase the work already being done and to discuss what else can be done.

    The aim of the Global Recycling Day, which coincides with the BIR’s 70th anniversary, is to unite people across the world, highlight the need to conserve the six primary resources (water, air, coal, oil, natural gas and minerals) and celebrate what is described as “the Seventh Resource” – the materials man recycle every day.

    “The goal for Global Recycling Day is to show the world that there is a  Seventh Resource, as economically viable as, and more sustainable than, the six key primary resources: air, water, oil, natural gas, minerals and coal. Recycling is a global issue, the environment is a global issue and this day celebrates that and pushes us all – wherever we live – to do more. March 18, 2018, marks the 70th anniversary of BIR, making 2018 a landmark year to create a day that recognises the vital role recycling and the industry plays in protecting the planet,” Baxi said.

    In addition to being a day for encouraging and promoting recycling, Global Recycling Day also serves as a day of action, according to the BIR. On March 18, world leaders, international businesses, communities and individuals made clear commitments in their approach to recycling, and consumers asked to answer key questions about recycling, allowing them to think of recycling in a new way.

    “We want Global Recycling Day itself to be a day of celebration, championship and change – a celebration of the food and materials around us, a championship of the good recycling can do and a change in our attitudes and practices toward our own waste and recycling habits,” states Baxi.

    In Nigeria, the day was celebrated by the Chanja Datti Recycling Company, which held a 7:00 a.m. walk at the Eagle Square in Abuja, to push advocacy for recycling. Chanja Datti is also running an upcycling contest, where people can create an artistic people or artwork from only recyclable materials and post it on social media using the hashtag #GRDupcyclingCompetition.

    Visionscape Sanitation Solutions Limited, operators of the Cleaner Lagos Initiative, ran a number of awareness raising messages via its Twitter account. Why some highlighted the benefits of recycling and the seven main categories of materials that can be recycled, others announced the occasion.

    In a Twitter message, the United Nations Industrial Development Organisation (UNIDO), says: “Recycling plays a key role in achieving a more sustainable production and consumption model. It’s about action and taking better stewardship of the goods created, used and disposed off everyday.”

  • Mining: FG engages revenue consultants to boost earnings – Fayemi

    Mining: FG engages revenue consultants to boost earnings – Fayemi

    …We intend to surpass projected annual growth rate of 8.54 per cent, says Fayemi

    The Federal Government has engaged the services of about 100 revenue consultants to work on areas of leakages in the revenue accrued from the mining sector, with a view to shoring up earnings from the sector.

    The consultants, who would be deployed to the six geo-political zones of the country in the coming week are to examine financial and production records of companies involved in mining activities in the last six years, to determine whether appropriate royalties were remitted to government.

    The Minister of Mines and Steel Development, Dr Kayode Fayemi, who disclosed the new step being taken by government during the opening of the three-day induction and training for the Revenue Consultants in Abuja on Monday, said the main target of the ministry is to ensure that the Federation Account gets its fair due in royalties and taxes.

    According to Dr Fayemi, the project, tagged “Revenue Optimization and Verification Project”. Would assist in blocking leakages  in the mining sector, thereby positioning the sector to achieve its set agenda of contributing significantly to the GDP.

    “Our expectation of this project is that the Ministry would emerge as a lead revenue agency for the Federal Government of Nigeria, in line with the growth projections of the Economic Recovery and Growth Plan ( ERGP ), which recognizes the mining sector as one of Nigeria’s most promising growth sectors, and acknowledges that its contribution to GDP doubled from N52 billion in 2010 to N103 billion in 2015. The ERGP further projects that revenue from the mining sector would grow from N103 billion (2015) to N141 billion (2020) at an average annual growth rate of 8.54 per cent (2017-2020)”

    Dr Fayemi said he is optimistic that the ministry would surpass these targets, as all stakeholders work collaboratively to ensure the success of the R.O.V. Project, resulting in improved levels of voluntary compliance of operators.

    The Minister admitted that leakages in government revenue was a big challenge in the mining sector, a development, which he said the ministry was determined to redress with the ROV Project, following its approval by the National Economic Council (NEC).

    He said: The R.O.V Project is an initiative of our ministry, pursuant of one of our core mandates, which is to significantly increase the contribution of the Mining Sector to our sovereign revenue.

     “Indeed, leakages in government revenue remains a big challenge in the sector, which we are working collaboratively with other government entities and sector stakeholders to fix. We have given considerable thought to this challenge and come up with a number of strategies to tackle it, one of which we are witnessing its launch today.

    “I am therefore pleased to announce that following the approval of the National Economic Council (NEC), we are today inaugurating a new model of revenue generation and collection in the mining sector. This entails the engagement of Professional Revenue Consultants who would work with our ministry’s mining officers to identify revenue leakages in the system.

     “The Revenue Optimization and Verification Project essentially seeks to confirm the adequacy of royalties’ remittances made by the various operators in the mining industry. They are mandated to collect and analyse data from 2012 – 2017 in the course of their work, thus giving us the opportunity to demand and receive accruals due to government from the referenced period. It would also ensure compliance of all operators to paying the correct amount in royalties to the government coffers going forward.

    The Minister said the  exercise will be carried out in line with the provisions of Section 17 of the Nigeria Mineral and Mining Act of 2007 which empowers the Mining Inspectorate Division of the Ministry to supervise and enforce compliance of laws and also section 43 of the Nigeria Mineral and Mining Act of 2007 which mandates mining operators to keep and supply records upon request by the ministry.

    Speaking further, the Minister who was represented by the Permanent Secretary of the Ministry, Dr Muazu Abdullahi, said the project was not designed to witch hunt anybody, even as he warned the consultants to avoid any shady deals.

    “This is not a witch hunting initiative, but the exercise of the statutory responsibility of the Ministry to determine the adequacy of remittances made by the various operators in the mining industry.

    Dr Fayemi added: “The image and reputation of the Ministry of Mines and Steel Development, and indeed the entire Federal Government of Nigeria is key during this Revenue Optimization and Verification Project; therefore, we charge all consultants to stand for what this government stands for by avoiding any form of compromise, illegality and unprofessional conduct.

    The Project Coordinator, Mr Makinde Araoye, said the projects is at no cost to the Ministry as the National Economic Council approval stated that consultants and the ministry take a certain percentage of whatever is recovered.

    “NEC approved 15 per cent as cost of collection, out of the 15 per cent. The consultant will be paid a certain percentage of what they recover, the lead consultant will be paid a certain percentage of what they recover and the Ministry will also retain certain percentage as cost of collection”, he added.

    The consultants which have already been grouped into all the 36 states in the six geopolitical zones of the country are to commence work after the training programme.

  • Buhari has done well, can seek second term- Momoh

    Buhari has done well, can seek second term- Momoh

    A chieftain of the All Progressives Congress ( APC ), Prince Tony Momoh on Wednesday said President Muhammadu Buhari has done well in the delivery of his electoral promises.

    Momoh, a former Minister of Information, gave the assessment in a telephone interview on Wednesday.

    He said though there were still some challenges in the country, Buhari had acquitted himself remarkably well as president of the country.

    Momoh pointed out those who said Buhari had not done well were either playing politics or refused to check the facts.

    He said the president had achieved a lot in the areas on which he anchored his campaign promises despite the herculean problems he met on ground.

    “President Buhari has done well based on the facts available and not sentiments. He has done well in the delivery of his campaign promises despite the big problems he met on ground.

    Read also: What is President Buhari up to?

    “For example, let us look at the area of security, before Buhari came in, the Boko Haram insurgents was operating almost uninhibited, to the extent of seizing territories.

    “But for Buhari’s intervention, Only God knows what would have happened to the country because of Boko Haram.

    “Also, while some other countries are still wriggling under recession caused by crash in commodity prices, the country is out and is even doing well in the area of diversification.

    “Even the World Bank has just predicted that the country’s GDP will further grow in 2018, there are also monumental gains in the fight against corruption.

    “I reviewed a book recently on the scorecard of the president and I was pleasantly surprised by some of the revelations about Buhari’s performance.

    “Those who do not know, should go and check the facts, Buhari has done well as president,” he said.

    He said the opposition was behind the cacophony of voices asking Buhari not to seek re-election based on the way they rated him.

    Momoh said they were only seeing Buhari’s performance based on their perspectives which did not reflect the facts.

    He said Buhari had the moral and legal right to seek re-election so long he made the decision and the party endorses him.

    “The opposition cannot stop Buhari from contesting if he decides to do so and the party endorses him. The facts are different from the prism through which they are looking at his performance,’’ he said.

    Momoh called for caution in treating the killings in parts of the country as being caused by Fulani herdsmen.

    He said criminal, including Boko Haram, might be hiding under Fulani herdsmen to unleash terror in some communities in the country.

    “We should be careful in the way we see the killings in some parts of the country, so that we can have a better understanding of dealing with the problem.

    “Some criminals, such as cattle rustlers and even Boko Haram insurgents can also hide as Fulani herdsmen to unleash terror on Nigerians.

    “The herdsmen we used to know were not carrying AK47, how we have come to this problem of killings calls for proper understanding.

    “It is not a political matter but a matter that needs understanding and attention because it involves lives,’’ he said.

    NAN

  • Nigeria’s GDP up 1.4 per cent

    Nigeria’s GDP up 1.4 per cent

    The Presidency yesterday described as a welcome development the latest Gross Domestic Product (GDP) figures released by the National Bureau of Statistics, with oil, agriculture and industrial sectors leading the growth.

    The Senior Special Assistant to the President on Media and Publicity (Office of the Vice-President), Laolu Akande, who stated this in a relase yesterday, said the new figures are clear indications of the ongoing progress  recorded by the Nigerian economy.

    Akande said the Buhari administration welcomes the new growth figures, and will continue to work diligently on a daily basis to ensure inclusive growth, to which we have always been committed through the active pursuit of a raft of policy initiatives, past and present, adding that such initiatives, include but not limited to the Social Investment Programmes, Anchor Borrowers Scheme, longstanding Budget Support Facilities to the States, plus other bailout packages, ensuring the comprehensive payment of workers’ salary & pension backlogs among others,’’ he added.

    He said  the Federal Government would be ramping up the implementation pace of the Economic Recovery and Growth Plan.

    Also commenting, the Special Adviser to the President on Economic Matters, Dr Adeyemi Dipeolu, said this development reinforced the exit of the nation’s economy from recession.

    “The latest NBS GDP figures show that the Nigerian economy grew by 1.4 per cent year-on-year in real terms in the third quarter of 2017 (Q3 2017).

    “This is a steady continuation of the positive growth of 0.55 per cent (now revised to 0.72 per cent) experienced in Q2 2017 and reinforces the exit from the 2016 recession.

    According to him, the positive growth in the third quarters is consistent with the improvements in other indicators.

    He noted that the foreign exchange reserves had risen to nearly 34 billion dollars while stock market and purchasing managers’ indices had also been positive.

    He said: “The naira exchange rate has stabilised while inflation has declined to 15.91 per cent from 18.7 in January 2017.

    “While inflation is not declining as fast as desirable, it is approaching the estimated target of 15.74 per cent for the year in the Economic Recovery and Growth Plan.

    “Agricultural growth was 3.06 per cent in the third quarter of 2017, maintaining the positive growth of the sector even when there was a slow-down in the rest of the economy.

    “The industrial sector grew at 8.83 per cent mostly due to mining and quarrying. The oil sector grew very strongly as forecast in the ERGP and partly as a result of the policy actions in the plan to restore growth in the sector.

    “The service sector is yet to recover but should soon begin to be positively affected by the improvements in the real economy and the effects of the dedicated and focused capital spending of over N1.2 trillion on infrastructure by the Federal Government.’’

    Dipeolu expressed the hope that the economy would continue to grow given these developments and the reform, and improvements in the business environment shown by the upward movement of 24 places in the recently released World Bank’s Ease of Doing Business Rankings.

    According to the presidential aide, the overall picture that emerges is that the economy is on the path of recovery.

    “As inflation trends downwards, and with steady implementation of the ERGP, real growth should soon be realised across all sectors in a mutually reinforcing manner,’’ he said

    Nigeria’s economy has improved further with a 1.40 per cent growth in the third quarter of 2017, the National Bureau of Statistics (NBS) said in a report released yesterday.

     

    In the 89-page report titled “Nigerian Gross Domestic Product Report (Q3 2017)”, the NBS notes that “this is the second time of such positive development since Nigeria exited recession in the second quarter.”

    According to the NBS, the growth is 3.74 per cent points higher than the 2.34 per cent rate recorded in the corresponding quarter of 2016 and 0.68 per cent higher from the 0.72 per cent rate recorded in the second quarter of the same year.

    The figures are based on revised data for crude oil production for the second quarter of 2017.

    “In the period under review, oil production is estimated to have averaged 2.03million barrels per day (mbpd), 0.15million barrels higher than the revised daily average production recorded in the second quarter of 2017 (revised from 1.84mbpd to 1.87mbpd).

    “Oil production during the quarter was higher by 0.42million barrels per day relative to the corresponding quarter in 2016, which recorded an output of 1.61mbpd.

     

    “Real growth of the oil sector was 25.89% (year-on-year) in Q3 2017; this represents an increase of 48.92% relative to rate recorded in the corresponding quarter of 2016. Growth also increased by 22.36% when compared to Q2 2017 which was revised from 1.64% to 3.53%.

     

    “Quarter-on-Quarter, the oil sector grew by 21.10% in Q3 2017.

     

    “As a share of the economy, the oil sector contributed 10.04% of total real GDP in Q3 2017, up from figures recorded in the corresponding period of 2016 and up from the preceding quarter, where it contributed 8.09% and 9.04% to GDP respectively,” NBS stated.

     

    Sectors that led growth in the non-oil sector which grew by 0.3 percent to stand at – 0.76 percent from its previous 0.79 percent are agriculture, other services and electricity, gas, steam and air-conditioning supply.

     

    “In real terms, the non-oil sector contributed 89.96 % to the nation’s GDP, lower than the share recorded in the third quarter of 2016 (91.91 %) and in the second quarter of 2017 ( 90.96 %).

     

    “Telecommunications & information services under information and communication• sector contracted by – 5.68 % in Q 3 2017 from – 1.92 % in Q 2 2017 and 0.95 % in Q 3 2016, ” the report stated.

     

  • ‘SMEs contribute about 48% to GDP’

    ‘SMEs contribute about 48% to GDP’

    Dr Femi Egbesola, National President, Association of Small Business Owners of Nigeria (ASBON), in this interview with Bukola Aroloye, speaks on challenges of small and medium scale enterprises. Excerpts:

    What has been the contribution of SMEs to the economy in the last five years?

    According to the Nigeria Bureau of Statistics, small and medium scale enterprises (SMEs) in Nigeria have contributed about 48% of the national GDP in the last five years.

    What is government investment to SMEs in terms of grant?

    Well, while the President Goodluck Jonathan launched the YouWin programme to provide grant to SMEs, we are yet to see any major grant programme under this present administration. However, there has been quite a number of intervention funds made available to SMEs.

    The intervention funds provided by this present administration has not been able to achieve much positive result largely because of the harsh economic condition of the country at the moment due to economic recession and also because of the difficulty of accessing most of this fund by an average SME. However, give or take, at least some has benefited from it, though the percentage of beneficiaries is really nothing to write home about compared with the teeming number of SMEs that actually need this funds.

    Many do survive by coming to terms with the reality that you just give it all it takes. This in a way has brought out a lot of ingenuity in business owners. While some saw need to cut down on their running expenses and staffing, others increase their access to market by fully exploring the use of various social platforms to market their products or services. Quite a number also sought out other cheaper loans rather than approach the commercial banks. A case of reference is the LSETF loan provided by the Lagos State government at 5% interest rate.

    Wastefulness was cut down to its minimum and many diversified to other fast selling and easily affordable products and services. Unfortunately, a lot who can’t face the storm closed shop