The Nation Newspaper

Tag: MSMEs

  • FATE Foundation may seek FIRS tax amnesty for MSMEs

    FATE Foundation may seek FIRS tax amnesty for MSMEs

    FATE Foundation (FATE) may  seek  the extension of tax amnesty for Micro, Small, MediumEnterprises and new startups on account of the challenging economic environment.

    Last  year, FATE and other organisations got Federal Inland Revenue Service (FIRS) to free small businesses from tax burdens as it waved all outstanding tax liabilities against them up till the end of the year.  Following this, the Service granted a 45-day tax amnesty for businesses that had not paid taxes between 2013 and 2015.

    Executive Director, FATE Foundation, Mrs. Adenike Adeyemi said the  45-day window, which was to close on November 24, last year was extended to December 31 for SMEs

    FIRS Executive Chairman, Tunde Fowler, said  the agency realised N27.086 billion from the waiver of tax penalty, adding that FIRS introduced the programme  to allow defaulters regularise their relationship with the agency.

    Despite this, Mrs. Adeyemi said the heavy tax on pioneering small businesses could pose threat to earlier investments in the light of the declining economic growth.

  • Osinbajo signs two new laws to ease MSMEs access to credit 

    Osinbajo signs two new laws to ease MSMEs access to credit 

    Acting President Yemi Osinbajo yesterday signed into law two bills from the National Assembly that will facilitate access to more affordable credit for Nigerians.

    The bills, which have now become ‘Acts’, are the Secured Transactions in Movable Assets Act, 2017 (otherwise known as Collateral Registry Act) and the Credit Reporting Act, 2017.

    ‘The Collateral Registry Act’ ensures that Micro, Small and Medium Enterprises (MSMEs) in Nigeria can register their movable assets such as motor vehicles, equipment and accounts receivable in the National Collateral Registry, and use same as collateral for accessing loans.

    This, according to a statement by the Senior Special Assistant on Media and Publicity, Laolu Akande, will in turn increase their chances at accessing financing and tackle one of the major obstacles faced by MSMEs.

    On the other hand, ‘The Credit Reporting Act’ provides for credit information sharing between Credit Bureaus and lenders (such as banks), and other institutions that provide services on credit such as telecommunication companies and retailers.

    A Credit Bureau is defined as a company that collects information relating to the credit ratings of individuals and makes it available to financial institutions, who need such information to determine an individual’s credit-worthiness and whether or not to grant loan applications to such individuals.

    The statement added: “Access to credit is critical to economic growth and is considered to be the motor for driving private sector development. However, in Nigeria more than 70% of private enterprises, typically MSMEs, have limited or no access to credit.

    “Credit applications get rejected due to insufficient credit history and information for the lender to use to make a reasonable judgment, as well as unacceptable collateral. The two new Acts remove those obstacles for MSMEs.

    “Traditionally, banks only give loans to businesses that can provide fixed land and property as collateral. This shuts out MSMEs, which usually own only movable assets like motor vehicles and equipment.

    “The Collateral Registry Bill, 2017, will give confidence to lenders to utilise the Registry and thereby make credit available to MSMEs and individuals through the use of their movable assets as collateral.”

    The Credit Reporting Act now, the statement said, will enable lenders to make reasonable judgement on whether or not to extend credit to an individual and reduces the cases of bad loans.

    “On February 21st, 2017, the leadership of the National Assembly publicly committed to passing the two bills as part of the 60-Day National Action Plan for Ease of Doing Business initiated by the Presidential Enabling Business Environment Council (PEBEC). That promise was kept by the National Assembly last week with the Bills forwarded to the Acting President for assent.

    “With the passage of these Acts, the existing Central Bank of Nigeria (CBN) Guidelines regulating the operations of the National Collateral Registry and Credit Bureaux have now been replaced by formal legal frameworks.

    “The passage of these Acts would facilitate the achievement of the goals of the Presidential Enabling Business Environment Council (PEBEC) set up by President Muhammadu Buhari in July 2016 and chaired by the Vice-President to progressively make Nigeria an easier place for businesses to start and thrive,” the statement stated.

  • Group holds MSMEs forum June 7

    The Coordinator, SMEs MEET, Mr. Bassey Etim, has said small and medium enterprises (SMEs) development is critical to achieving the goal of the transformation agenda, urging the government to ensure a conducive business environment, and support investors.

    He spoke of the need to create a vibrant, inclusive and holistic business environment for all industries, including micro-enterprises.

    According to him, Nigeria needs to remove the obstacles which hinder the ease of doing business as these are crucial for businesses to prosper.

    He reiterated that a strong growth engine for the nation is the rise in SMEs.

    Etim   said SMEs MEET is organising a forum to address the challenges faced by Micro, Small and Medium Enterprises in Akwa Ibom State and in the Niger Delta region.

    Scheduled to hold between June 7 and 9 at the Ibom E-Library, Uyo, the Akwa Ibom State capital, the enrepreneurs are expected to share and contribute their expertise and resources to help local SMEs to grow, develop and sustain their businesses.

    He announced the SMEs Bright Awards planned to recognise outstanding small businesses in the state with the objective of celebrating and exposing their products and services to the state and beyond.

    He stressed the importance of SMEs in economic development and receive the benefits from the various programmes and plans implemented by the government.

    Etim added that SMEs have an opportunity to secure funding, as well as network and form partnerships and joint ventures with investors at the forum.

    He said the forum was an opportunity for them to make strong partnership that will benefit both parties.

     

  • Focus less on finance, SMEDAN tells MSMEs

    Lagos State District Coordinator of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Yinka Fisher, has urged entrepreneurs in micro, small and medium enterprises (MSMEs) to develop workable innovative ideas and expand business network rather than lament on the problem of accessing finance.

    Fisher stated this Friday while speaking on the topic, “Unlocking youths’ entrepreneurship potential for national economic development” at the Trek Entrepreneurship Lecture.

    He said: “The problem of finance is not an immediate problem for entrepreneurs as finance will be easily accessed if business is properly placed.

    “One thing we keep telling people is that you cannot run a business alone and that is why you must network with a synergy of different people so that at the end of the day whatever is your own weakness would be the strength of your partners and the weak point of your partners can be your own strength.”

    Fisher stated that many small and medium enterprises are unable to access finances primarily due to lack of information as well as their inability to meet specified requirements which include realistic business plans and provision of loans collateral.

    He said: “When we talk about finance, finance availability is in abundance but what is your ability to know how to tap into it? You must be able to provide a business plan. Let us see your business plan.

    “Of course, it is not enough for someone to come and say that I am looking for finance without knowing what kind of business that person is into and what business direction that person is looking at.

    “So, for finance to be properly accessed, first thing first is to understand what it takes to establish an enterprise and when your business is properly established, you would know how to source for your finance. Providing information on funding are some of the things MSMEs can get from SMEDAN as an institution of government.”

  • Osinbajo: Fed Govt will develop local economy through MSMEs

    Osinbajo: Fed Govt will develop local economy through MSMEs

    The Federal Government is committed to building the local economy through the encouragement of Micros, Small, Medium Enterprises (MSMEs) in rural communities across the country, the Vice President, Prof. Yemi Osinbajo, said yesterday.

    Speaking while inspecting Plateau-made products on display at Polo Field,  Jos during his one-day state visit to Plateau State he expresses delight over the made-in-Plateau products. He said his office is embarking on a nationwide MSMEs Clinic 2017 programme across the states of the federation in order to grow the local economy.

    “The programme has solved so many business challenges faced by business men and women in some parts of the country where the National MSME Clinic 2017 have been held through the engagement of various agencies involved in doing business in the country.

    “The MSME Clinic is basically meant to encourage local entrepreneurs  for the purpose of growing local economy of the country, Prof Osinbajo said.

    The state Governor, Simon Lalong, in his welcome remarks said the commitment of the Vice President to social investment and the economic emancipation of the citizens have remained the indisputable reflection of the desire of President Muhammadu Buhari to enhance the economic well being of the citizens of the country.

    He said: “Beyond poverty alleviation is livelihood sustainability, hence the various programmes that the government has initiated in the agric sector and through the Micro, Small and Medium Enterprises Development Agency, to enhance the economic well being of Nigerians.

    “We have keyed into the objectives of the MSME Clinic which is to bring all relevant stakeholders and business operators together, to discuss issues affecting the setup and operations of MSMEs in Nigeria. Further to this is for government and other stakeholders to share and provide information on all policies and programmes that, have being initiated in the country to encourage activities of MSMEs”

    Gov Lalong commend Mr Vice President for initiating the SMEs Clinic which has already been held in 4 states of the federation and has provided a platform for SMEs to be empowered with necessary tools for growth.

    The Plateau State Government is almost at a point of signing a Memorandum of Understanding with Bank of Industry (BOI) on matching fund of Two Billion Naira (N2Bn) facility to enable the trained people have access to funds at a subsidized rates for the establishment of their businesses.

    The State Government in partnership with the European Union (EU) has also organized an exhibition programme for MSMEs to show case especially the Made-In-Plateau products which is a move towards encouraging MSMEs and linking them to markets and financial institutions.

    Chairman of the planning committee, Mr. Ezikiel Gomos in his address said MSMEs have been working hard to keep the economy of Nigeria growing over the years in their various areas of specialisation, disclosing that the MSMEs Clinic 2017 is to make them grow more.

    Mr.Gomos  maintained that, small businesses are the engine room of every economy in the world and, “This is the day for the MSMEs on the Plateau, government want to ensure that citizens are told how various agencies can take part in the growth of their various businesses for the economic growth of evey individual and the Country in general.”

     

  • CBN urges banks to lend more to MSMEs

    CBN urges banks to lend more to MSMEs

    The Central Bank of Nigeria (CBN) Governor, God win Emefiele has advised banks and other financial institutions to diversify their portfolios and lend more to the Micro Small and Medium Enterprises (MSMEs) sector which is seen as the engine room of the economy.

    Speaking yesterday at a three-day Financial Institutions Training Centre (FITC) training programme on ‘Movable Asset Lending for Financial Institutions in Nigeria’, in Lagos, he said access to finance is essential for private sector growth and development in any economy. It remains a major constraint to all developing economies like Nigeria, he lamented. He said MSMEs are key in promoting economic development and should be supported by lenders.

    Represented by the Registrar, National Collateral Registry (NCR), Mainasara Muhammad, he said in addressing this financing gap, the CBN collaborated with the World Bank / International Finance Corporation (IFC) Group, to establish the Secured Transactions and National Collateral Registry. The registry, he said, will improve access to finance for MSMEs while maintaining a strong prudent lending policy and promote sound financial system in the country.

    He said the registry started operations in May 2016, and that there were initial teething problems which were surmounted and registration of financing statement commenced in November 2016.

    Also speaking at the event, Managing Director, FITC, Lucy Surhyel Newman, said the IFC and CBN has continued to support FITC in its plans to build competencies in the financial sector. She said that over the recent past five years, IFC has contributed immensely to the competencies of bank directors, FITC staff and associates in terms of corporate governance, board leadership, as well as the emerging collaboration on Environmental and Social Risk Management (ESRM).

    “The movable asset financing course, is targeted at heads of credit and risk management; loan portfolio managers/officers, heads of SME Lending, heads of collection/enforcement, loan recovery manager/officers, heads of legal departments, as well as those transiting to such roles in Deposit Money Banks (DMBs), Development Finance Institutions (DFIs), Primary Mortgage Institutions (PMIs) and Infrastructure Banks (IFBs),” she said.

    Newman said most stakeholders in the Nigerian financial system and socio-economic studies as applicable to development, recognise that MSMEs, are critical to socio-economic development and contribute over 60 percent of GDP in emerging economies.

    Country Manager, IFC, Lagos, Eme Essien Lore, said access to finance by SMEs has remained a challenging feature of economic development in Nigeria.

    She said the link between the financial and real sectors resides in finance being essential to the ability to invest in real capital assets.

    “The absence of a proper financial system and financial products handicaps economic development. It is well known that self-financing by enterprises, particularly SMEs, and individuals, limits their capacity to invest, grow, and smooth consumption through time,” she said.

  • BoI partners RUFIN on soft loans for MSMEs

    BoI partners RUFIN on soft loans for MSMEs

    The Bank of Industry (BoI), executor of MarketMoni, one of Federal Government’s social intervention programmes, has sealed a pact with the Rural Finance Institution Building Programme (RUFIN) to provide access to soft loans to 100,000 small businesses.

    RUFIN is an initiative of the Federal Ministry of Agriculture and Rural Development (FMARD).

    The deal was part of the Federal Government’s plans to stimulate the economy and deepen financial inclusion for the economically active rural poor.

    It also signals the commencement of events by BoI to reach 100,000 new beneficiaries of MarketMoni through RUFIN across Nigeria’s six geopolitical zones within the second quarter of the year.

    Under the scheme, accredited individuals will have access to quick, easy and interest-free loans of between N10,000 and N100,000 for up to six months at no other costs except a one-time five per cent administrative fee.

    BoI said it hoped to leverage the success of RUFIN’s financial empowerment efforts across 12 states  to reach its target the Government Enterprise Empowerment Programme (GEEP) market.

    Already, the first phase of the loan disbursements is ongoing across Katsina, Nasarawa, Zamfara, Edo, Oyo and Lagos states, driven by RUFIN-mentored microfinance banks (MFBs) and microfinance institutions (MFIs).

    “The participating MFBs and MFIs include BOWEN MFB Limited, Evbovbiorhon Community Farmers Savings and Loans Cooperatives Ltd (ECF), Rural People Development Initiative (RUPEDIN), Self–Reliance Economic Advancement Programme (SEAP) and Development Exchange Centre (DEC),” a statement from the bank said.

    BoI’s Acting Managing Director, BoI, Waheed Olagunju, confirmed that the partnership aligned with the bank’s objective of expanding access to credit for people running micro enterprises below the bottom of the pyramid, majority of which are women.

    He further acknowledged the pivotal role that credit facilities play in economic growth in Nigeria, saying: “BoI’s partnership with RUFIN is geared towards stimulating this process by reaching beneficiaries in rural areas across the federation and including them in Nigeria’s financial landscape.”

    RUFIN’s National Programme Coordinator, Olumuyiwa Azeez, said: “We are proud that our track record has earned us this opportunity to be a channel to reach out to thousands of micro entrepreneurs who hitherto never had opportunity of accessing fund to boost their businesses.”

    He said this was in line with the Minister of Agriculture and Rural Development, Chief Audu Ogbeh’s plan to get life back to the rural people.

    The MarketMoni programme targets 1.6 million beneficiaries in a year. This population consists of one million micro-enterprises of market traders (women and men); 260,000 artisans, 200,000 farmers and/or agriculture workers and 200,000 enterprising youths broadly.

    It is expected that beneficiaries of the scheme would go on to create at least one new job in their localities as a result of the intervention.

  • Osinbajo inaugurates National MMSE Council to drive economic growth, job creation

    Osinbajo inaugurates National MMSE Council to drive economic growth, job creation

    Vice President Yemi Osinbajo on Wednesday announced the reduction of the membership of National Council on Micro, Medium, and Small Enterprises (MSMEs) from 43 to 21.

    Osinbajo said at the inauguration of the council that the reduction  was  to ensure  effectiveness and proper coordination.

    “This Council shall be the apex body on MSMEs development in the country, providing guidance and coordination on the establishment of strategies and policies for the wholesome support of MSME development in Nigeria.

    “The next few years will be decisive for Nigeria in many profound ways.

    “Our ability to create a modern industrial economy able to provide livelihoods for millions and a future for multiples will be tested.

    “The challenge calls for our sharpest minds and best talents.

    “And you ladies and gentlemen who form this council are of that required caliber, we simply cannot afford to fail.’’

    The vice president described the council as a fresh, streamlined and refocused National Council on MSME.

    He said that the council “was the coordinating platform for the implementation of all development programmes within the sub sector, especially the National Enterprise Development Programme (NEDEP)’’.

    He said NEDEP was the administration’s repackaged and strategic platform to deliver growth and sustainability within the MSMEs subsector.

    He said the importance of the MSMEs was enormous as they were the bedrock of the nation’s industrialization and inclusive economic development and also the most important component of industrialization.

    “This is the primary driver of employment, wealth creation and poverty alleviation for our government,’’ he said.

    Osinbajo recalled the survey by SMEDAN and National Bureau of Statistics showing that over 37 million MSMEs existed in the country employing no fewer than 59.7 million persons, contributing 48.4 per cent to GDP and 7.27 per cent to exports.

    He, therefore, said that if each MSME employed an additional person the administration would create over 37 million extra jobs.

    “With NEDEP we are making MSMEs a central part of our national growth and economic policy.

    “”This is a new model for national enterprise development and would reach every one of the 774 local governments in Nigeria.

    “”We have identified and are supporting at least one product in each of the local governments based on each local government’s area of competitive and comparative advantage.

    “”NEDEP will unlock the Nigerian MSMEs sub sector by resolving the issues that most small businesses have to contend with.

    “”These are access to finance, access to markets, weak business development dearth of technical skills, lack of infrastructure and insufficient market information,’’ he said.

    The VP said that with NEDEP the administration would create enterprise zones with the required infrastructure for small businesses to succeed.

    Osinbajo said the programme would transform the country through employment generation, facilitating economic linkages and engendering rural industrialization.

    ““As we look ahead, it is important that we not only sustain the momentum of NEDEP and other development programmes such as the highly successful nation-wide MSME clinics but we must coordinate their impact for effectiveness and sustainability.

    ““This is the crucial relevance of the National Council on MSMEs,’’ he said.

    “The Council will effectively coordinate the enterprise development efforts made by the various tiers of government, International Development Partners (IDP) and the private sector towards job creation, wealth creation and poverty alleviation in Nigeria.

    “The Council will draw its membership from the public and private sectors and its secretariat shall be the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

    “”It is important to re-emphasize the point that this Council will have the same success delivery platform as the Presidential Enabling Business Environment Committee (PEBEC).

    The VP outlined the responsibilities of the Council to include coordinating the activities of all stakeholders in both the private and public sectors to ensure that all efforts and activities are geared towards the priority sectors of the economy.

    Others are guiding the Federal Government on the formulation of broad policies and strategies to drive the wholesome development of the MSMEs sub-sector in Nigeria.

    The council will be coordinating the roles and responsibilities of Government Ministries, Departments and Agencies  (MDAs), State and Local Governments and other stakeholders responsible for MSME development.

    It will be promoting inter-agency synergy and cooperation in MSME development and encouraging and strengthening Public-Private-   Partnership and Public-Public-Partnership in MSME development.

    It is to ensure the creation of an enabling environment to facilitate the development of MSME clusters,     infrastructure upgrade, access to finance, MSME capacity building and fostering increased awareness and ensuring  stakeholders’ buy-in on MSME development   programmes, initiatives and projects.

    The council will also ensure the institution of an effective framework for monitoring and evaluating the impact of MSME policies, programmes, projects and initiatives as well as ensure that the principles of the National Policy on MSMEs are achieved and reviewed as the need arises.

    The minister of State for Industry, Trade and Investment, Mrs Aisha Abubakar, in an address said the Council looked forward to creating an MMSE sub-sector that could drive the administration’s diversification programme.

    Also the D-G of SMEDAM, Dr Dikko Radda, said that the inauguration was good for the development of the economic sector and showed the importance the administration had given to MSMEs in the development of the nation’s economy.

    According to him, the creation of additional 37 million jobs being proposed to the council, will eliminate joblessness in the country.

  • Fed Govt inaugurates 21-member MSMEs Council

    Fed Govt inaugurates 21-member MSMEs Council

    VICE President Yemi Osinbajo yesterday inaugurated the National Council on Micro Small and Medium Enterprises (MSMEs).

    The membership of the Council, under the chairmanship of the vice president and assisted by the Trade Industry and Investment Minister, Okechukwu Enelamah, has been reduced from an initial 43 to 21.

    Osinbajo attributed the reduction to taking into consideration effectiveness in delivery.

    He said the Council is expected to effectively coordinate the enterprise development efforts made by the various tiers of government, International Development Partners (IDPs) and the private sector towards job creation, wealth creation and poverty alleviation in the country.

    Stressing that it was important to inaugurate the council even in the absence of some of its members, he said: “There is much work to be done.”

    The council, which is the coordinating platform for the implementation of all development programmes within the sub-sector, especially the National Enterprise Development Programme (NEDEP), a repackaged and strategic platform to deliver growth and sustainability within the MSMEs sub-sector, was first launched in 2014 by the past administration.

    Osinbajo identified the MSME as the bedrock of Industrialisation, inclusive economic development and the most important component of the industrialisation drive in the country’s Economic Recovery and Growth Plan (ERGP), being the primary drivers of employment, wealth creation and poverty alleviation.

    The Council, he said, shall be the apex body on MSMEs development in the country, providing guidance and coordination on the establishment of strategies and policies for the wholesome support of MSME development in Nigeria.

    “It shall also engineer the institution of effective monitoring and evaluation strategies to ensure that MSMEs’ development targets are achieved”, the vice president said.

    The Council which has its membership drawn from the public and private sector institutions will have the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) as its secretariat.

    Osinbajo said: “It is important to re-emphasize the point that this Council will have the same success delivery platform as the Presidential Enabling Business Environment Committee (PEBEC).

    “The membership of the Council has been streamlined for the purpose of achieving results without undue bureaucracy.  For instance, the existing membership has been reduced from 43 to 21 for effectiveness and purposefulness.”

    The terms of reference for the council include; coordinating the activities of all stakeholders in both the  private and public sectors to ensure that all efforts and activities  are geared towards the priority sectors of the economy; guiding the Federal Government on the  formulation of broad policies and strategies to drive the wholesome development of the MSMEs sub-sector in Nigeria; coordinating the roles and responsibilities of  Government  Ministries,  Departments and Agencies  (MDAs), state and local government areas and other  stakeholders responsible for MSME development;

    promoting inter-agency synergy; cooperation in  MSME  development encouraging and strengthening Public-Private- Partnership and  Public-Public-Partnership in MSME development ensuring the creation of an enabling environment to facilitate the  development of MSME clusters infrastructure upgrade and access to  finance, MSME  capacity building among others.

    Members of the council include: the minister of Industry, Trade & Investment, Minister of State, Industry, Trade * Investment, ministers of Finance, Mines and Steel Development, Agriculture, Communications, Budget and National Planning, Water Resources, Power, Works and Housing, Science and Technology, Women Affairs, Minister of State for Budget and National Planning, Central Bank Governor, Chairman, Nigeria Governors’ Forum, Economic Adviser to the President, Special Assistant to Vice President on MSMEs, President, Manufacturers’ Association of Nigeria (MAN), President National Association of Small and Medium Enterprise, Director-General SMEDAN and the Minister of Information, Culture & Tourism.

  • Fed Govt disburses N1b to MSMEs

    The Minister of Industry, Trade and Investment, Okechukwu Enalemah has said the Federal Government, through the Growth and Empowerment Project (GEM) has released N1billion to 81 young graduates.

    This grant, he said, was also for qualifying Micro Small and Medium Enterprises (MSMEs) while supporting 4,000 MSMEs by 2018.

    He said: “For the 81 recipient today, GEM has disbursed over N1billion to qualifying MSMEs to support 4000 MSMEs by 2018. Vice President Prof Yemi Osibanjo initiated the provision of this grant through the Growth and Empowerment Programm, GEM, to empower Nigeria youths, create jobs and drive inclusive economic growth.

    “This is an initiative of President Muhummadu Buhari to support young Nigerians with business ideas seeking to provide technology, enabled solutions to our most pressing challenges. The first edition was attended by the CEO of Facebook Mark Zuckerberg, which is a testament of governments commitment to support, empower and celebrate our home grown performing MSMEs. We look up to innovators like you to come up with locally relevant solutions to meet the needs of every day Nigerians.

    “We are confident that the finance provided today will empower you to keep innovating, expanding your reach and by doing so touching the lives of your fellow Nigerians. Our initial desire was to boost growth through MSMEs within non-oil generating sectors.

    “Small businesses remain the key drivers of Nigeria economy, contributing to more than three quarters of our labour force and accounting for close to half of Nigerians’s GDP. The acceleration of this sector is correlated to economic growth and advancement. MSMEs are major keys to addressing major unemployment problems especially among the youths.