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  • Govt begins disbursement of N75b loans to MSMEs

    Govt begins disbursement of N75b loans to MSMEs

    The Federal Government has commenced the disbursement of N75 billion single digit loan to Micro, Small and Medium Enterprises (MSMEs) through the Bank of Industry (BoI).

    Senior Special Assistant to the President on Job Creation and MSMEs, Mr. Tola Adekunle-Johnson, broke the news in Abuja at a nationwide town hall meeting to sensitise MSMEs to the Presidential Grant and Loan Scheme.

    Adekunle-Johnson explained that the town hall meeting was going on simultaneously in Ogun, Bauchi, Enugu and Kaduna states with a view to educate MSMEs on the conditions for accessing the loan.

    He said: “We are live in Ogun, Bauchi, Enugu, Kaduna states simultaneously. In 2023 President Bola Tinubu approved some funds as palliative to cushion the effects of subsidy removal.

    “We are here today to sensitise MSMEs to the loan which is currently open all over the country.

    “MSMEs can work into any Bank of Industry from today and apply for this loan. It is a single digit loan, it is nine per cent, it is fixed, no hidden charges.

    “This is the one and only single digit loan you can get and you can get up to N1 million.

    “It is important for us to sensitise the people to this facility so that they don’t fall into the hands of people that will tell them to bring money before they can access it.”

    The presidential aide said that his office had been collaborating with BoI, which is an important implementing agency for the scheme.

    “If you need any information, if you are not sure of anything, go to the Bank of Industry.

    “Once you provide the requirements, very quickly, you will get yours, immediately,” Adekunle-Johnson said.

    The Managing Director of BoI, Dr. Olasupo Olusi, explained that the N200 billion Presidential Intervention Fund for MSMEs and Manufacturing Enterprises was established to support them towards driving economic growth and job creation.

    Olusi was represented by Mabel Ndagi, Executive Director, Public Sector and Interventions of BoI.

    He said that MSMEs are the driving force behind the nom-oil economy, contributing significantly to innovation, economic growth and job creation in the agriculture, manufacturing and services sectors.

    The director said: “Despite the immense contribution to economic growth, MSMEs struggle to access the necessary funding to reach their full potential.

    Read Also: Floods wreck havoc in Rivers communities 

    “In recognition of this, the Federal Government introduced the N200 billion intervention fund for MSMEs and Manufacturing Enterprises and appointed Bank of Industry as the executing agency to implement this initiative.”

    He reiterated that the bank remains committed to playing its part in promoting and supporting MSMEs growth across the country.

    Also, the Managing Director of Access Bank Plc, Mr Roosevelt Ogbonna, said the bank was committed to supporting MSMEs.

    Ogbonna said: “In 2008, we focused on MSMEs with particular attention on women and youths. Ninety-four per cent of all businesses are MSMEs; 66 per cent of that, are owned by women and youths.

    “That is the reason for our focus; we want to be known as Nigeria’s MSMEs bank.”

    In Ogun, Governor Dapo Abiodun urged MSMEs in the state to take advantage of the N200 billion Presidential Intervention Fund to boost their businesses.

    Industry, Trade and Investment commissioner Adebola Sofela gave the advice at a town hall and sensitisation programme for MSMEs and manufacturing enterprises on the fund in Abeokuta, the state capital.

    The fund comprises N50 billion Nano grant, N75 billion loan scheme for big businesses and N75 billion loan scheme for MSMEs.

    Sofela said the fund was designed to help enterprises to boost businesses and strengthen the operational capacity of entrepreneurs to contribute effectively to the local and national economic development.

    “Many entrepreneurs in the state have benefitted from the Nano grant and other loan schemes of the fund at favourable terms for businesses, which are yielding results.

    “The scheme is ongoing, and we are here today so that more entrepreneurs can be sensitised and their questions answered. We believe that more entrepreneurs will be able to benefit from this programme,” he said.

    The commissioner, who was represented by the Special Adviser to the Governor on Trade, Mrs. Oluyemisi Somorin-Dawodu, noted that the intervention aligned with the economic transformation of Governor Dapo Abiodun’s administration.

    He added that different programmes had been facilitated to engender business growth, skill development, access to finance, and many more, with provision of infrastructure and implementation of business-friendly policies.

    The State Manager of the Bank of Industry (BoI), Mr. Michael Agidani, announced that the N75 bilion loan scheme for MSMEs was available for existing small businesses and start-ups that had registered with the Corporate Affairs Commission (CAC).

    The banker explained that each business could borrow up to N1 million with nine per cent interest rate within fourth and sixth month, and repayable within three years, while enjoying a moratorium of three months.

    A laundry business owner, Mr. Daniel Olukoga, and a member of the Association of Skilled and Vocational Artisans of Nigeria (ASVAN), Mr. Roshid Sodamola, said the programme had proven to be beneficial to different entrepreneurs across the state.

    Also, the Federal Government has given conditions for prospective beneficiaries of the Presidential Grants and Loan Scheme for the Micro, Small and Medium Enterprises (MSMEs) to meet before they can access the loan.

    The Akwa Ibom State Manager of the Bank of Industry (BoI), Tolulope Toluwase, listed the requirements at the formal launch of the scheme in Uyo, the state capital.

    Toluwase said the project targeted 75,000 MSMEs, 75,000 direct jobs and 150,000 indirect jobs.

    The state manager explained that each applicant must present a guarantor not below Grade Level 10 at the Federal Government civil service, BVN/NIN, four passport photographs, a valid means of identification of the applicant and their guarantor.

    He added that any successful applicant who meets all the requirements would get N1 million loan to boast their business.

    Toluwase said the repayment plan would span three years and be made on a monthly basis with an interest rate of a single digit.

    He said: “We believe that N1 million per beneficiary when injected in a small and medium scale operation shall make a significant impact. Since it’s a loan, there must be some documentations. Anyone who wants to access must first of all be in business, must be a sole proprietorship and must be registered with Cooperate Affairs Commission (CAC). The interest rate is actually a single digit.”

  • The coming of micro pension plan

    True to the notification, on Thursday, March 28, President Muhammadu Buhari launched the micro pension plan (MPP) which automatically extends retirement benefits to millions of self-employed workers in the informal sector. As a contributor to the 15-year old Compulsory Pension Scheme (CPS), my interest in the developments in pension industry is one of total commitment. I also bear witness that the compulsory contributory pension scheme is working to the extent that I get regular alert from my Pension Fund Administrator (PFA) about the status of my RSA (Retirement Savings Account). The point cannot be overstated.

    Pension Reform Act was enacted on June 25, 2004. It came into effect on July 1, 2004 after extensive deliberations by all the stakeholders, notably organized labour and organized private sector employers. Pension Reform Act of 2004 was the most significant legislation of the second National Assembly. Before its coming, the old scheme had pension deficit of about N2.3 trillion in 2004. Pensioners were not being paid entitlements regularly. Pensioners died on verification queues while billions of pensions fund were looted.

    Among the Act’s laudable objectives include saving for old age, workers receiving their retirement benefits as and when due and halting the growth of outstanding pension liabilities.  The contributory scheme is fully funded with employers contributing 10 per cent and employees contributing eight per cent deducted directly from workers’ salaries and promptly transferred to workers’ retirement saving accounts. Today, pension assets have grown from N2.9 trillion in 2012 to over N6.5 trillion, thanks to the efforts of the successive leaderships of the National Pension Commission (PENCOM). The pension law was amended in 2014. Significantly, it was amended to widen the scope of coverage to include the informal sector, tighten sanction for non-compliance and review the rates of contribution among others. The rates were also made equitable with employers paying more than the workers. Employers contribute 10 per cent while workers contribute eight per cent making a total of 18 percent as against the inaugural 15 percent (7.5 percent each).

    With the amended PRA 2014, PenCom initiated the framework for the Micro Pension Scheme that targets the informal sector. The provision of the Pension Reform Act 2014 (PRA 2014) applies to all employees in the public service of the federation, Federal Capital Territory, states and local governments and the private sector organizations in which there are three or more employees. However, Section 2(3) of the Act provides that employees of organizations with less than three employees as well as self-employed persons shall be entitled to participate under the Contributory Pension Scheme in accordance with guidelines issued by the commission. The categories of persons referred to in Section 2(3) of the PRA 2014 constitute the vast majority of the working population. They are mostly the unemployed tailors, artisans, road transport workers among others. Every working woman and man needs social protection and some safety net after work, failing which work remains precarious. The challenge is how to work out a framework that would address the flexible and unstructured nature of informal work. It is commendable that the commission “considers it necessary to develop a framework for the implementation of the provisions of Section 2(3) through a “Micro Pension Plan”. Micro pension refers to an arrangement for the provision of pension to the self-employed and persons operating in the informal sector through the Contributory Pension Scheme. Beyond the presidential launch last Thursday, PenCom must utilize   various channels of communication in educating the public on micro pension plan. The most important and effective channels should be periodic town hall meetings with trade unions, trade associations and cooperatives to educate members, proffer clarifications and address concerns on the micro pension plan. Trainings must also be organized for leaders of unions, associations and cooperatives to be micro pension champions to coach and enlighten their members.

    All done, the nagging questions that haunt the formal sector pension coverage remain. Will micro pension contributors have access to a portion of their RSA balance?  Mrs Aisha Dani’s-Umar answered this question at the launch. According to her, every contribution shall be split into two: 40 per cent for contingent withdrawal and 60 per cent for retirement benefits.

    Will micro pension contributors also qualify for minimum pension guarantee provided they satisfy the requirement outlined in the guidelines on minimum pension guarantee? The income of most persons targeted for micro pension plan is usually irregular and inadequate. Will contributions be made flexible unlike in the formal sector where contributions are fixed?

    It is refreshing that PenCom agrees that the frequency of remittance of contributions “could be daily, weekly, monthly or as may be convenient to the micro pension contributor provided that contributions will be made in any given year”. Last Thursday’s launch was indeed better late than never. The president’s stamp would definitely legitimize the contributory pension scheme in both formal and informal sectors. If implemented, pension coverage would be more inclusive to cover millions of self-employed who for now are not assured of life after work.  Not only that, there would be sustainable investable funds for socio-economic development. So far with as many as 8.5 million formal sector workers covered, as much as N8.7 trillion pension assets have been accumulated. With potential 80 million workforce, the potential for accumulated workers’ capital is better imagined. Micro pension is certainly a sustainable measure against mass income poverty that has pushed workers in both formal and informal sectors into the abyss of poverty. With the micro pension launch and expected attendant increase in pension assets, there is no doubt that the nation is also assured of investable funds for poverty alleviation as well as wealth generation.

     

    • Aremu, mni is a labour activist.

  • MSMEs as panacea to youth unemployment: Delta’s example

    Over 400 youths participated in a Products Exhibition and Business Fair which held in Asaba, the Delta State capital, recently. The crowd of youthful exhibitors, beneficiaries of the Skills Training and Entrepreneurship Programme (STEP) and Youth Agricultural Entrepreneurs Programme (YAGEP) designed by the Okowa-led administration to help achieve its twin goals of tackling unemployment and nurturing Micro, Small and medium scale Enterprises (MSME’s), filled the cenotaph.

    A morning haze, which was tempered by a cool breeze, hung over the venue of the event.  Loud contemporary Nigerian music thrilled the audience -creating a carnival atmosphere .The mood was buoyant and the crowd expectant.

    Gaily dressed women, mostly PDP faithful, filled the terraces adding colour and drama to the event.

    Hundreds of excited youths, clad in sky-blue vests and base -ball caps, jeans trousers manned colourful booths- exhibiting their creative and productive potentials in a variety of goods and services. The exhibitors were some of the graduates of the Okowa administration’s Skills Training and Entrepreneurship Programme (STEP) and Youth Agricultural Entrepreneur Programme (YAGEP) schemes.

    Business was brisk at the fair. Rows of food vendors, mainly products of the scheme’s catering and confectionary programme, offered both Nigerian, Foreign and local delicacies to the teeming crowd. Sizzling hot barbecued catfish, roasted ham, bacon and chicken were on display on locally fabricated ovens –an inviting aroma hung over the grounds. Many seized the opportunity provided by the business fair to shop for the yuletide.

    The art of weaving of the local fabric (Akwa-Ocha) received a boost with the display of modern Akwa-Ocha machines, to improve productivity and reduce production times.

    Akwa-Ocha, a local fabric, literally means white cloth. It is a symbol of the cultural heritage of the Anioma people.

    The well-apportioned booths brimmed with a variety of goods and services including ICT, hair dressing and makeover, catering and confectionary, cosmetology, craft/home care products ,decoration and event management ,electrical installation and repairs ,fashion design and tailoring ,shoe-making upholstery ,welding and Fabrication and auto mechanic works.

    The agricultural enterprises covered aquaculture, crop production, agro-processing and piggery.

    Delta State Governor Ifeanyi Okowa, who declared the Product Exhibition and Business Fair open, was accompanied to the event by Ex-Governor James Ibori and Sokoto State Governor Aminu Tambuwal and several top functionaries.   Other include wife of the Governor of Delta State, Edith Okowa, Deputy Governor of Delta State, Kingsley Otuaro and his wife, Ebi.

    Okowa noted that his administration recognition that certain economic sectors and activities hold the highest potentials for job and wealth creation for the economy ,adding that this informed the need by his  government to spend more on these sectors knowing it is cost effective and go a long way to reduce youth unemployment and poverty

    His words, “Globally, it has been established that certain economic sectors and activities hold the highest potentials for job and wealth creation for the economy; these are agriculture, agribusiness, agro-based industries, vocational skills-based micro enterprises, cottage enterprises, small and medium scale enterprises as well as public works such as environmental sanitation, housing and road construction; in fact, interventions in these sectors are generally cost-effective and go a long way to reduce youth unemployment and poverty, while ensuring social inclusion, positive economic growth and sustainable development as has been observed in many countries in South Asia, South East Asia and Latin America.”

    Through our flagship Skill Training and Entrepreneurship Programme (STEP) and Youth Agricultural Entrepreneurs Programme (YAGEP), we have achieved what many thought was unthinkable; after two programme cycles, two thousand, three hundred and twenty four (2,324) previously unemployed youths are now small business owners and employers of labour.”

    Okowa lauded the Products Exhibition and Business Fair organised by the beneficiaries of Job Creation Scheme of his administration.

  • MSMEs as panacea to youth unemployment: Delta’s example

    Last week, over 400 trained youths participated in a Products Exhibition and Business Fair which held in Asaba, the Delta State capital. The crowd of youthful exhibitors, beneficiaries of the Skills Training and Entrepreneurship Programme (STEP) and Youth Agricultural Entrepreneurs Programme (YAGEP) designed by the Okowa-led administration to help achieve its twin goals of tackling unemployment and nurturing Micro, Small and medium scale Enterprises (MSME’s), filled the cenotaph.

    A morning haze, which was tempered by a cool breeze, hung over the venue of the event.  Loud contemporary Nigerian music thrilled the audience -creating a carnival atmosphere .The mood was buoyant and the crowd expectant.

    Gaily dressed women, mostly PDP faithful, filled the terraces adding colour and drama to the event.

    Hundreds of excited youths, clad in sky-blue vests and base -ball caps, jeans trousers manned colourful booths- exhibiting their creative and productive potentials in a variety of goods and services. The exhibitors were some of the graduates of the Okowa administration’s Skills Training and Entrepreneurship Programme (STEP) and Youth Agricultural Entrepreneur Programme (YAGEP) schemes.

    Business was brisk at the fair. Rows of food vendors, mainly products of the scheme’s catering and confectionary programme, offered both Nigerian, Foreign and local delicacies to the teeming crowd. Sizzling hot barbecued catfish, roasted ham, bacon and chicken were on display on locally fabricated ovens –an inviting aroma hung over the grounds. Many seized the opportunity provided by the business fair to shop for the yuletide.

    The art of weaving of the local fabric (Akwa-Ocha) received a boost with the display of modern Akwa-Ocha machines, to improve productivity and reduce production times.

    Akwa-Ocha, a local fabric, literally means white cloth. It is a symbol of the cultural heritage of the Anioma people.

    The well-apportioned booths brimmed with a variety of goods and services including ICT, hair dressing and makeover, catering and confectionary, cosmetology, craft/home care products ,decoration and event management ,electrical installation and repairs ,fashion design and tailoring ,shoe-making upholstery ,welding and Fabrication and auto mechanic works.

    The agricultural enterprises covered aquaculture, crop production, agro-processing and piggery.

    Delta State Governor Ifeanyi Okowa, who declared the Product Exhibition and Business Fair open, was accompanied to the event by Ex-Governor James Ibori and Sokoto State Governor Aminu Tambuwal and several top functionaries.   Other include wife of the Governor of Delta State, Edith Okowa, Deputy Governor of Delta State, Kingsley Otuaro and his wife, Ebi.

    Okowa noted that his administration recognition that certain economic sectors and activities hold the highest potentials for job and wealth creation for the economy ,adding that this informed the need by his  government to spend more on these sectors knowing it is cost effective and go a long way to reduce youth unemployment and poverty

    His words, “Globally, it has been established that certain economic sectors and activities hold the highest potentials for job and wealth creation for the economy; these are agriculture, agribusiness, agro-based industries, vocational skills-based micro enterprises, cottage enterprises, small and medium scale enterprises as well as public works such as environmental sanitation, housing and road construction; in fact, interventions in these sectors are generally cost-effective and go a long way to reduce youth unemployment and poverty, while ensuring social inclusion, positive economic growth and sustainable development as has been observed in many countries in South Asia, South East Asia and Latin America.”

    Through our flagship Skill Training and Entrepreneurship Programme (STEP) and Youth Agricultural Entrepreneurs Programme (YAGEP), we have achieved what many thought was unthinkable; after two programme cycles, two thousand, three hundred and twenty four (2,324) previously unemployed youths are now small business owners and employers of labour.”

    Okowa lauded the Products Exhibition and Business Fair organised by the beneficiaries of Job Creation Scheme of his administration.

  • Bayelsa created 7, 000 jobs in five years -Dickson

    Bayelsa created 7, 000 jobs in five years -Dickson

    The Bayelsa Government said on Thursday in Yenagoa that it created over 7,000 direct and indirect jobs through the release of N1.88 billion loan to Small and Medium-scale to entrepreneurs and cooperatives.

    Gov Seriake Dickson stated this at the 2017 African SME EXPO with the theme `Promoting SMEs for sustainable development and economic growth’.

    Dickson, represented by his Deputy, Rear Admiral John Jonah (rtd), said that his administration achieved the feat in partnership with the Bank of Industry and other relevant agencies.

    He said that the initiative enhanced the growth of SMEs with direct impact on the economic growth of the state.

    Dickson said that In furtherance to his commitment on job creation and empowerment of the teeming youths in the state, the government was also negotiating for a N2 billion Micro, Small and Medium Scale ( MSME ) Enterprenuership loan.

    He explained that in 2015, the government launched Izon Microfinance Bank to provide small businesses and serious minded entrepreneurs with access to capital.

    “This is important for us because funding is crucial, if people are to innovate and think outside the box.

    “We have achieved so much since the commencement of the Microfinance Bank, especially because the bank, with support provided by CBN and other funding partners, has supported women groups and cooperatives in the state to venture on their own.”

    Describing SMEs as panacea for the growth of the local economy, Dickson stressed the need for the promotion of locally made goods and as well as simplifying business registration process.

    “We need to deliberate in strengthening the existing institutions as in the Bayelsa example, where there is a law that one per cent of the annual state budget is released to the Bayelsa State Microfinance and Enterprises Development Agency for SME development yearly.

    “We must simplify the registration processes for businesses and encourage their migration from the informal to the formal sector through regulation and proper monitoring.

    “As leaders and opinion shapers, we need to encourage technology diffusion through value chain processes and establish priority sectors for local investment,” the governor said.

    Dickson recommended tax incentives for priority sectors, saying that it is a means of boosting local production.

    In addition, he advocated for training and incentives for the utilization of local production resources for SMEs that establish operations in certain designated areas.

    Dickson said the gains of his administration included the 60 tonnes per day Cassava starch factory at Ebedebiri in Sagbama that is linked with the cultivation of a 100-hectare cassava farm.

    “Our Aquaculture village at Yenegwe in Yenagoa, with fish processing complex capacity of 7.5 tonness per batch, 20 tonnes per day feedmill, 500 non-earthen ponds capable of accommodating 700 fishes, hatchery with six million fingerlings per animals.

    “Our plans, in collaboration with the Federal Government over the the Peremabiri Rice farms/mills in Southern Ijaw, is also one of the largest in Africa with a huge capacity that has started.

    “With that in mind, the construction of a 3.5 Kms run away Cargo Airport is under way in Bayelsa,” Dickson said.

    In his contribution Dr. Ebiekure Eradiri, the Director-General, Bayelsa State Microfinance and Enterprise Development Agency, applauded Dickson’s vision and support for the MSMEs sub-sector.

    Eradiri said that that since Dickson took over the mantle of leadership in the state in 2012, he has been of tremendous support to the scheme.

    He stated that the Africa SME Expo event had increased the perspective and that the Agency was willing to pursue vigorously its mandate to achieve its cardinal projects on fund recovery, job creation and wealth creation for Bayelsa.

  • FG to improve MSMEs’ access to business support

    FG to improve MSMEs’ access to business support

     

    The Federal Government says it is committed to addressing the challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in the country.

    It said it would do that through interaction with entrepreneurs with relevant business regulations in form of clinic sessions.

    The Special Adviser to the President on Economic Matters, Dr Adeyemi Dipeolu, said this in Abuja on Wednesday at the two-day Nationwide MSMEs Clinic for the FCT, with theme “Nationwide MSME Clinics for Viable Enterprises’’.

    Dipeolu said the clinic was to address the challenges of MSMEs doing businesses in Nigeria, adding that similar clinics had been held in seven states.

    He advised the participants to take the advantage of the clinic to discuss with government agencies in charge of business issues.

    Dipeolu said that the clinic was to understand the challenges faced by MSMEs and also to create awareness on the standards of producing goods both for local consumption and exportation.

    According to him, the MSMEs clinics is an initiative of the Presidency, aimed at addressing problems of enterprises across Nigeria.

    The Managing Director, Abuja Enterprise Agency, Muhammed Arabi, said the clinic was not only bold but timely in view of the myriads of bottlenecks that MSMEs were encountering while starting up or growing.

    Arabi said until the government started seeing itself as agent for the growth of the MSME sector, it could not realise the expected potentialities of providing the needed result of jobs creation and  poverty reduction.

    He said that the universal belief was that small and medium enterprise sector was a major driver of the economy.

    Arabi said the convergence of all relevant ministries, departments and agencies to give solutions to the problem, respond to inquiries and provide the needed information would definitely lead to the success of the initiative.

    He said the country was lagging behind in spite of the MSME sector holding 96 per cent of the business sector in Nigeria compared to 53 per cent in the U.S. and 65 per cent in Europe.

    Arabi added that with the employment capacity of about 33 million people, it only contributed 48 per cent of the Gross Domestic Product of Nigeria, compared to nations on the same status in Asia.

    “We therefore owe this nation a duty and the MSME sector in particular, as stakeholders, to move from this poor status to catch up with the fast moving would.’’

    At the interactive session, participants complained of lack of finance and that most banks asked for impossible collateral.

    He also complained of lack of patronage from Nigerians who preferred to buy imported products.

    The Deputy Director, Development Finance Department, Central Bank of Nigeria (CBN), Mr Osita Nwanisobi, advised entrepreneurs to always pay back loans collected from banks.

    Nwanisobi said most banks faced the challenges of people not returning the loans they borrowed to give other customers.

    He said that CBN always sanctioned banks that failed to do the right things concerning loans for MSMEs.

    “We monitor the commercial banks because there are guidelines for the interventions,’’ he said.

    According to him, CBN is ready to provide avenues for upcoming entrepreneurs to easily access funds to either set up or expand their various enterprises.

    “CBN is focused on enhancing capacity utilisation, increasing output of goods and services, boosting job creation and increasing foreign exchange earnings,” he said.

     

  • AfDB wants MSMEs lending in Africa to be increased to $135bn

    AfDB wants MSMEs lending in Africa to be increased to $135bn

    The African Development Bank (AfDB) has called on financial credit providers to increase lending to Micro, Small and Medium Enterprises (MSMEs) in Africa to 135 billion U.S. dollars.

    A statement issued by Mr. Emeka Anuforo, the Communications Officer of the Bank, in Abuja on Wednesday said that increasing affordable loans would promote the growth of MSMEs on the continent.

    The statement quoted Dr. Akinwumi Adesina, the President of AfDB, as saying that although Africa had the highest percentage of adults starting or running new businesses in the world, the productivity nonetheless remained low.

    Adesina solicited a holistic policy approach to strengthen entrepreneurship to facilitate Africa’s industrialisation and tackle the myriad financial constraints facing small-scale businesses.

    “The entrepreneurial culture is vibrant, with about 80 per cent of Africans viewing entrepreneurship as a good career opportunity.

    “New industrialisation strategies should focus on leveraging this dynamism and targeting the continent’s fast-growing private enterprises which have potential to create quality jobs.

    “Given Africa’s potential for increased involvement in this sector, AfDB is also increasing its efforts to promote access to finance for entrepreneurs to create start-ups and expand existing businesses,” he said.

    Adesina said that the bank in 2016 provided financial services to 156,000 owners and operators of MSMEs via financial intermediaries to address a key challenge facing efforts to start and grow businesses.

    He said that AfDB had collaborated with USAID, the Fund for Africa Private Sector Assistance and the International Labour Organisation (ILO) to build the capacity of SMEs in Zambia.

    He said that the partnership was to enable the nation’s financial institutions to become efficient in lending to smaller businesses.

    According to him, the bank is also launching some new programmes that are designed to help Africa to attain its industrialisation goals.

    Adesina said that the bank was also collaborating with the European Investment Bank and the European Commission to help create and grow 1,500 innovative businesses, while creating 25 000 direct jobs and 100,000 indirect jobs.

    He said that the collaboration would also improve environmental, social and management practices in youth-owned SMEs across Africa.

    News Agency of Nigeria (NAN) reports that AfDB, a regional multilateral development bank which has 81 countries as members, promotes the economic and social development of its members.

  • N25bn ETF: Lagos targets 100,000 entrepreneurs by 2019

    N25bn ETF: Lagos targets 100,000 entrepreneurs by 2019

    …Fund will impact on the lives of Lagosians – Commissioner

    The Lagos State Government on Monday said that it has set a target to utilize the N25billion Employment Trust Fund to provide financial support to over 100,000 Micro, Small and Medium Enterprises (MSMEs) within the next three years.

    Executive Secretary of the Lagos State Employment Trust Fund (LSETF), Mr. Akintunde Oyebode, who spoke while briefing journalists at the Bagauda Kaltho Press Centre said the fund, was in line with Governor Akinwunmi Ambode’s vision to create employment and entrepreneurship opportunities for all Lagosians.

    Acknowledging the fact that Lagosians are eagerly awaiting the commencement of the fund, especially with the challenging economic recession, the Executive Secretary said the Board set up to manage the funds had spent the last few months perfecting strategies and addressing grey areas ahead of the commencement of the disbursement of the funds later this year.

    Explaining further, he said the Board of Trustees embarked on several strategy sessions to define the mission, vision, core values and strategic framework to guide the Fund’s activities.

    “After the completion of the research exercise, the Board working with its appointed consultants developed a strategic framework articulating the goals of the Board, the key interventions designed to enhance job creation, and the supporting infrastructure needed to deliver the set goals. This exercise has now been concluded and approved by the Lagos State Executive Council,” he said.

    Highlighting some of the framework for the disbursement, Oyebode said the fund would provide loans to MSMEs at a single digit interest rates per annum, while training and capacity building and technical support would be provided to drive growth and job creation.

    “The businesses we support must demonstrate capacity to repay our loans; be owned by Lagos residents duly registered by the Lagos State Residents Registration Agency (LASRRA); show evidence of tax payments to the Lagos Inland Revenue Service (LIRS); and have valid Bank Verification Numbers (BVNs). In addition to our MSME financing schemes, we will also train unemployed residents to either take up identified jobs or run their businesses,” he said.

    Oyebode added that in adherence with Section 6 of the Lagos State Employment Trust Fund Law of 2016, the Board has forwarded the Operating Guidelines outlining the proposed interventions and eligibility criteria for approval by the Lagos State House of Assembly.

    Oyebode expressed optimism that the fund would have multiplier effect with the capacity to create 300,000 direct and 600,000 indirect jobs while about 200,000 new tax payers would be added to the State’s tax net.

    He said that the LSETF Board, in order to ensure sustainability of the Fund, has set its target to raise a minimum of N25 billion from domestic and international donors, in addition to the N25billion already committed by the State Government.

    “Once the pilot phase is completed, we will roll-out our loan schemes in all 57 LGAs and LCDAs across Lagos State. The full rollout will see us visit all LGAs to hold stakeholder sessions, where our staff will educate applicants on the application process, and the eligibility criteria for our various schemes. We are also in the process of setting up liaison offices in 20 LGAs, to bring the Fund’s activities closer to the people, and increase our points of representation to serve Lagos residents,” he said.

    Corroborating him, Commissioner for Wealth Creation and Employment, Dr. Babatunde Durosinmi-Etti said Governor Ambode’s administration was committed to ensuring the fund impacts on the lives of Lagosians.

    He lauded the plan by the LSETF Board to set up offices in 20 Local Governments in the State, saying that it would go a long way to ensuring that no area is marginalized.

    “It is important that this process has taken considerable time, we need to make it work and also ensure that it is to the benefit of all Lagosians,” Durosinmi-Etti said.

    Adding his voice, Chairman, House Committee on Wealth Creation and Employment, Hon. Sola Giwa, assured that members of the House would give the Operational Guidelines of the fund expeditious passage.

    “This is one of the pivotal promises of Governor Ambode and I can assure you that the House would do its best to ensure that we do it right,” Giwa said.

  • SMEDAN: 96% of SMEs are micro

    SMEDAN: 96% of SMEs are micro

    Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Director-General, Dr. Dikko Umaru Radda, has said 96 per cent of Medium, Small and Micro Enterprises (MSMEs) in the country are micro.

    He said the agency was making efforts to formalise them to access funds.

    Radda spoke while receiving Plateau State Governor Simon Lalong in his office.

    Radda said SMEDAN was well positioned to assist states in developing and promoting MSMEs, given the role of the sector in wealth creation and poverty alleviation.

    He noted that the agency was being repositioned to meet the challenges of the present times, adding that the visit of the Plateau State chief executive to the agency was not only apt, but encouraging.

    Radda said SMEDAN would assist the state in business development services and entrepreneurship training.

    Lalong said SMEDAN was key to actualising one of his agenda for youth and women, hence, the establishment of the state MSME agency.

    He said he was at the agency to introduce the head of the Plateau State Small and Medium Enterprises Development Agency, Mr Haggai Gutap, to SMEDAN so both agencies could synergise on how to develop MSMEs.

  • $40bn drained from external reserve in 10 years, says CBN

    $40bn drained from external reserve in 10 years, says CBN

    The Central Bank of Nigeria (CBN) has cried out that about $40 billion had been depleted from the nation’s external reserves in 10 years due to the taste for imported goods by Nigerians.

    To stem the hemorrhaging of the external reserve the CBN has strongly advocated for Nigerians to begin to process raw materials so as to get more value and earn more foreign exchange.

    According to the CBN governor Mr Godwin Emefiele, “exported raw materials such as crude, wood, cocoa amongst others whose end products are later imported, are being sold cheaply and bought back at more expensive rates” He said the level of the external reserve will be significantly beefed up if fuel which takes up 20 per cent of Nigeria’s import bill is locally produced.

    Defending the decision of the CBN to support the real sector, Emefiele said the apex bank “is convinced that the sector has sufficient employment capabilities, high growth potentials, contributes significantly in accretion to foreign reserves, expands the industrial base and diversify the growth potentials of the economy.”

    Emefiele noted that Nigerians “must, by now have been tired of hearing people talk about the potentials of Nigeria, now is the time to live that dream, we can achieve our goals and give Nigerians the chance to live longer, better and more fulfilled lives.”

    To make this possible, the CBN governor appealed “to Nigerians to patronize locally made products to encourage the manufacturers to remain in business, interventions by the bank are centered around agriculture, Micro, Small and Medium Enterprises (MSMEs) and Infrastructure intervention.”

    The CBN governor also disclosed that in order to make the real sector attractive to the banking industry, the apex bank has injected over N1.3 trillion into the sector.

    Speaking at the annual finance corespondent sand business editors seminar in Ibadan yesterday, the CBN Governor Mr Godwin Emefiele said the desire to revive and stimulate credit to the real sector was what informed the bank’s efforts to pump such huge amount of financial resources into the real sector.

    Represented by the by deputy governor, Corporate Services, Adebayo Adelabu Godwin Emefiele noted that by injecting funds and subsidizing rates, and through relevant policies, the CBN has assisted in growing the economy and promoting the growth of the different sectors of their economies.

    According to Emefiele, the interventions that culminated in the over N1.3 trillion support for the real sector include “the Agricultural Credit Guarantee Scheme Fund (ACGSF),the Commercial Agricultural Credit Scheme (CACS), the Agricultural Credit Support Scheme (ACSS), the N300 billion Real Sector Support Facility (RSSF), the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF), the Small and Medium Enterprises Refinancing and Restructuring Facility (SMERRF), the N75 billion Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL), the N213 billion Nigeria Electricity Market Stabilization Fund and only recently, the Anchor Borrowers’ Programme launched by President Muhammadu Buhari.”

    The CBN is also supporting the Nigeria Export Import Bank (NEXIM) with N50 billion export refinancing and restructuring facility as well as N500 billion as non-oil export stimulation facility. “If you add all these it is in excess of N1 trillion that have been deliberately injected into the system to ensure that they are fully resuscitated and they become attractive for commercial banks” Emefiele said.

    The CBN governor however stated that credit injection to the real sector was not intended “to crowd out the financial institutions in the space of credit delivery but to provide incentives that will stimulate lending at reasonable rates by banks to the real sector.” In addition, the reduction of the CRR of DMBs he noted “has freed almost all the resources that the banks can lend to finance projects under the real sector.”

    Reacting to recent criticisms that the CBN has gone beyond its mandate, the CBN Governor responded that “many central banks in emerging economies, in carrying out their primary mandate, go a step further in directly supporting different sectors of the economies of their respective countries.”