The Nigerian Association of Small Scale Industrialists (NASSI) has restated its commitment to the growth and development of small and medium scale enterprises.
Giving this charge at the weekend was Mr. Segun Kuti-George, Chairman of NASSI, Lagos Chapter.
He spoke at the official launch of the Lagos Island chapter of NASSI in Lagos.
Justifying the need for the new chapter, Kuti-George said: “This is something that we have been dreaming about for a long time. That is having chapters of NASSI all over Lagos state. Lagos is the commercial nerve center of the country with over 22 million people. About forty per cent of businesses in Nigeria are in Lagos. We have a big role to play here but all past efforts have not been yielding results.”
The NASSI boss while paying glowing tribute the team led by Ms Kemi Ilori, who according to him, finally made the launch possible. “They have put in their personal and corporate resources to ensure that we are able to do this today. The purpose is to be able to spread the tentacles of the association that represents the interest of kitchen micro and small and medium enterprises in Lagos state. The state has a minimum of 49 local government and LCDAs and it would not be too much for us if we have 49 chapters. However, I would say that it is always good to dream big but start small.”
The event, which had the Lagos State Commissioner for Wealth Creation and Employment, Babatunde Durosimi Etti who chaired the occasion said: “We are looking at the different levels of the economy and looking at the importance of artisanship. Just before coming here, I had two programs today, one for a group of youths. For them, we are trying to put up employability skill. The second was to go and see what a small group was doing along the Lekki-axis , trying to get less privileged students and see how we could build their capacity and harness the opportunity that abound in their employability skills. For me, it is quite important because they own tomorrow. They also fit into the small business because a lot of the youths would be employed into small businesses.”
Tag: SME
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NASSI committed to SMEs’
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NBCC, DCSL strategise to tackle SMEs’ challenges
Nigerian-British Chamber of Commerce (NBCC) and DCSL Corporate Services Limited plan to address the challenges of Small and Medium Enterprises (SMEs), NBCC President Prince Dapo Adelegan has said.
At the unveiling of the MSME Centre in Lagos, Adelegan said the centre, to be managed by DCSL, would strengthen business advisory and regulatory compliance, facilitate access to fund, provide support in taxation, governance, book keeping, immigration, business plan, secretarial, management, company incorporation and other areas to the entrepreneurs.
He said the initiative became necessary to provide the needed support that would strengthen the sector and enable Nigeria to be a robust economy.
Adelegan said SMEs remained a key sector that could accelerate the economy out of the woods. He stressed the need to provide adequate support for the sector.
“We are providing a platform where every SME will be properly structured so that it can attract investment and add value, and also provide everything required to take the business beyond the founder and become relevant,” he said.
He said until Nigeria built enduring institutions, particularly for SMEs, it might not record much growth.
The initiative, part of the programmes lined up for the chamber’s 40th anniversary, Adelegan said, took into cognizance the role SMEs “play in modern economies, especially in the areas of job creation and contribution to the Gross Domestic Product (GDP)”.
DCSL Managing Director Bisi Adeyemi said the aim was to add value to SMEs because of their role in boosting a country’s GDP, adding that though the government was trying to put the sector on track, the players lacked capacity for global competitiveness.
“The greatest challenge facing the sector is lack of structure and knowledge. Most of the SMEs don’t have structure and they are unaware, but a little training can put them on track. In the past, the challenge used to be capital but now it is capacity. No lender will give you loan if you don’t have a structure.
“What this centre will do is to offer SMEs a platform to consult in all area of their business. We are taking advantage of the synergy with NBCC to reduce the cost of services for them,” she said.
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How SME clusters can boost sustained growth
Accelerating industrialisation requires creating small and medium-sized enterprise (SME) clusters and focusing on job creation and entrepreneurship, the President, Association of Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola, has said.
Egbesola said focusing on job creation, entrepreneurship and the promotion of small and medium enterprises (SMEs) could boost inclusive and sustainable industrial development across the country.
According to him, SME networking through cluster development would assist them to overcome the challenges of the economy by fostering their collective efficiency apart from helping the government and the banks to monitor loan repayment and regulatory compliance.
Given the substantial opportunities for SMEs in areas such as manufacturing, services and agriculture and their potential for reducing poverty, he said it was critical for governments to come up with effective strategies and practical investment programmes to facilitate further SME cluster development. Egbesola stressed the need to create an enabling environment for business, which activates industrial growth, triggers local economic development and increases income and job opportunities.
He said ASBON was working with Ogun State government to take over management of Yewa market.
The partnership, according to him, is expected to provide some tax reliefs for SMEs and encourage more Nigerians to embrace entrepreneurship by taking spaces at the market. Egbesola said the association is in the forefront of promoting made-in–Nigeria products. According to him, Made in Nigeria’ projects enhance manufacturing.
Other than opening avenues for job creation and skill enhancement, he believes it aims at enhancing the quality standards of Nigerian made products, minimising the impact on the environment, and making Nigeria a desirable destination for capital and technological investment – factors that will go a long way in boosting exports.
He reiterated the plan of the association to establish a micro finance bank to help entrepreneurs grow their ventures.
The overall entrepreneurial ecosystem, the ASBON boss, maintained, needs to be nurtured to encourage greater growth ambition among SMEs. This could be supported through the establishment of public-private partnerships delivering high-quality SME business support.
He said there was need to support SMEs to innovate and transform as a means of building a sustainable business, and these should include a healthy dose of incentives and financial-assistance programmes to help them along.
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FG to support SME’s to grow economy, says Osibanjo
The Vice President, Professor Yemi Osibanjo has restated the commitment of the President Muhammadu Buhari’s led administration to support the Small and Medium Scale Enterprises in Abia and other states of the federation to grow the country’s economy in the face of the present economic challenges.
Osibanjo stated this while flagging off the Nationwide Micro, Small and Medium Enterprise Clinics for Viable Enterprises (MSME) in Aba, the commercial hub of Abia State.
The Vice President who described the SMEs as the highest employers of labour and engine house of every great nation’s economy said that President Buhari has great interest in the growth of the SMEs and stressed that it was the intention of the incumbent administration to make the industry to compete favourably and to even surpass their counterparts at the global stage.
He said that the essence of visiting Aba, Kano, Nnewi, Onitsha and any other parts of the country is to interact with the people, identify their problems and as well finding a lasting way to tackle some of the challenges that are hindering the SMEs from performing optimally.
“Mr. President gave two examples of how some of our agencies make it difficult for people to be able to register anything or do business and I think that everybody today understands that if we are talking about diversification of Improving our economy, it starts from those who are manufacturing, those who are doing local manufacturing. I am sure you know that the biggest employer of labour and the largest earning to our GDP comes from the local manufacturers and the local industries; that is how it is in everywhere in the world. Our focus is to support the local industry.
“I have seen all sorts of things today. I want to encourage those who are in manufacturing and industry to know that whatever that it will get you to do you business well and to become major competitors worldwide, that is exactly what we intend to do and that is why we are going round, we are making sure that we understand what the problems are so that we can be able to address all of those problems. We are looking forward to a greater Aba, an Aba that will compete with any of the industries that are established in China and any other part of the world.”
Earlier in his remarks, the State Governor, Dr. Okezie Ikpeazu said that the choice for Aba for the flag off of the MSME Clinics was apt and that Aba merited it.
Ikpeazu who hailed the resilience of Aba manufacturers and industrialists said that the state government was working assiduously to ensure that the goods of the SMEs produced in Aba will get the requisite certification to meet best global practices and standard.
Lauding the energy that the Aba manufacturers deploy in getting their wares produced, Ikpeazu said that he was excited that the efforts of the state government in promoting Aba made wares have been receiving acceptance and at the same time, getting the endorsement of the President of the country, Muhammadu Buhari.
The governor urged the manufacturers to be proud of what they produce, adding that the state government was building “a one-stop shop specifically to make businesses to excel” and promised that the state would be giving land freely to any agency of the federal government involved in the certification of locally manufactured goods that wishes to establish its office(s) in any part of the state.
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SMEDAN calls for establishment of SME bank
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has emphasised its call for the establishment of Small and Medium enterprise (SME) Bank. The said bank would be used to access funds without the bottlenecks associated with loans from other banks. This, according to the agency, would pave the way for creation of millions of job.
Addressing the media in Lagos, SMEDAN’s Director-General/Chief Executive Officer, Dr. Dikko Umaru Radda, said the major challenge inhibiting the development of SMEs in Nigeria remained non-accessibility of funds by the entrepreneurs, which has to be addressed by establishing a bank for the sub-sector.
Radda, who opposed the proposed scrapping of Bank of Industry(BOI) by the Federal Government, maintained that more of such retail banks should be established along a designated bank for the SME sub-sector.
According to him, the small and medium scale businesses would be more at home with SME banks than any other.
As an agency saddled with the responsibility of catering for the SME in Nigeria, SMEDAN boss said the agency would establish an SME micro-finance bank to kick-start the process of creating SME bank.
Radda, however, lamented that the agency was confronted by many challenges limiting its capability, among which included the Act of National Assembly that established the agency in 2003 to which the agency has been seeking amendment.
He said if the Act was amended by the National Assembly, the agency would be more empowered to develop the SME sub-sector to the higher level, adding that the agency would be able to formalise the SMEs, as many of them remained informal by creating platform through which they could easily register their businesses and have easy access to fund at the proposed SME bank.
Radda, who noted that the agency was underfunded, said the agency would liaise with the government to allow it have 30 per cent of the tax on the luxury products imported into the country, emphasising that such luxury goods should be taxed more if imported into the country.
He maintained that the revenue from such tax would be used to fund SMEs as it is done in other countries.
He also appealed for the provision of enabling environment for the SMEs to thrive, while charging the Federal Government to promulgate competition law, which would regulate monopoly and other factors affecting the economic growth in the country.
Meanwhile, Radda said there was the need for the government to ensure synergy among all agencies, ministries and departments that are saddled with similar but complementary responsibilities rather than promoting unnecessary rivalry.
“We see one another as competitors rather than collaborators. We have forgotten that we are all working for the government and for the well-being of the citizens.
“SON and NAFDAC should not see each other as competitors, while SMEDAN and ITF should accept that they are complementing each other’s effort to growing the economy,” he said.
He, therefore, promised that the agency would put in all efforts to ensure that the SME sub-sector is used as a driver to take the nation out of economic recession, adding that it has been collaborating with other agencies and organisations on vocational and entrepreneurial training, capacity building and financial sourcing.
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SMEs seek investment for growth
With recession biting and dwindling fortunes, small and medium-sized enterprises (SMEs) are seeking opportunities through trade and investment to help the economy grow.
The Association of Micro Entrepreneurs of Nigeria (AMEN) Secretary-General, Mr Frederick Nwokeleme, said exploring opportunities overseas was a focus needed if Nigeria is to remain economically competitive in the years to come.
With tightening domestic economy, he said local firms were determined to increase exports to a global economy and is vital if the economy would be rebuilt.
Innovative SMEs among AMEN, he said, were determined to explore the export markets with result likely lead to economy-wide productivity benefits.
He believes empowerment of small businesses has a vital role to play in enhancing the enterprising economy.
According to him, SMEs belonging to AMEN are going to capitalise on the depth of the local expertise to identify and exploit opportunities.
SMEs, he maintained, play an important role in the economy and contribute substantially to income, output and employment.
He observed, however, that the recent economic financial crisis created a particularly tough climate for SMEs, with a reduction in demand for goods and services and a contraction in lending by banks and other financial institutions. The growth of the SME sector has been hampered by lack of credit.
To assist SMEs, he appealed to the government to focus on supporting working capital and easing access to finance.
Nwokeleme stressed that SMEs could sustain the nation’s growth for long-term development and assume a key role in industrial development .
According to him, it is critical for Nigeria to have a thriving SMEs sector as it accounts for around half of national output and 60 per cent of employment.
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‘24,000 MSMEs to access loan from $260m GEM programme’
No fewer than 24,000 Micro, Small and Medium Enterprises (MSMEs) across the country have applied for technical and financial support under the Federal Government’s Growth and Employment (GEM) project, GEM Coordinator Mr Yunusa Labaran has said.
Labaran, in an interview, said more applications were being expected through the online registration portal of the project known as Business Innovation and Growth (BIG).
The programme is implemented by the Federal Ministry of Industry, Trade and Investment, with funding support from the World Bank and the UK Department for International Development (DFID).
While the World Bank is supporting the project with a loan of $160 million, DFID will provide a grant of $100 million.
GEM seeks to provide technical support and grant to participating MSMEs in five identified sectors with a high potential for economic growth and job creation. The sectors are: Information and Communication Technology (ICT), entertainment, hospitality, light manufacturing and real estate.
He said induction workshops had been held for applicants in the Southeast, Southsouth, Southwest and Northcentral.
Laabaran explained that the induction was postponed in the Northwest and Northeast because of low registration at the time.
“As at the time other geopolitical zones were invited for induction, the level of registration from the North-West and North-East was very low.
“This was due to the Boko Haram insurgency, which crippled telecommunication and internet facilities in the North-East, and the low level of education in the North-West.
“So, we have to give MSME operators in those areas additional two or three weeks to register because the portal is still running,’’ he said.
Labaran said the next stage was training of inducted applicants, after which they would submit their business plans for evaluation.
He added that MSMEs that scaled through the business plan evaluation would be assisted with grants.
Labaran said independent monitors would visit benefiting firms to ensure that they were using the grants for their purposes.
“These independent monitors will visit them three or six months later to know whether they are using the funds for the purpose they are meant. That is why whatever we are giving we are going to tranche it. We don’t just give it to you at once. We will first give them certain percentage; thereafter, we will monitor them to see whether they are doing what they claim to do. If they are not doing it, then they will not get another tranche,’’ he said.
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AfDB approves $9m equity investment for SME’s in Nigeria
The African Development Bank (AfDB) has approved a $9million equity investment in the Fund for Agricultural Finance in Nigeria (FAFIN) to provide expansion capital to agric small and medium-sized enterprises (SMEs), according to a statement issued by continental lender yesterday.
The statement said FAFIN is a first-generation private equity fund that provides financial, capacity-building and technical assistance to commercially viable SMEs in the Nigerian agribusiness sector.
It said FAFIN used a unique value chain-centric approach, a combination of equity, quasi-equity and convertible loan instruments to provide loan for SME s.
According to it, FAFIN implements its strategy and constructs its portfolio through a bifocal lens consisting of the twin objectives of competitive financial returns and measurable positive social impact.
The Fund is jointly sponsored by the German KfW Development Bank and the Government of Nigeria, through the Federal Ministry of Agriculture and Rural Development (FMARD).
The Fund Manager is Sahel Capital (Mauritius) Limited, a fund management firm incorporated in Mauritius in 2013.
The project is expected to deliver strong development outcomes from household benefits and employment through the creation of a large number of jobs and the provision of agric products.
It also said this would bring about positive gender and social effects through the implementation of out-grower schemes and supporting rural development and private sector development.
It said through alleviation of financial constraints faced by agribusinesses, this would enhance agricultural value chains.
“The project’s contribution to inclusive growth is expected to be significant, given the large numbers of jobs to be created and out-growers to be reached at the level of sub-projects,’’ the statement explained.
Its contribution to green growth is expected to be low, because the Fund targets the agribusiness sector with some expected negative effects on the environment.
The Fund’s primary focus will be on SMEs across the agric value chain with crop value chain and geographic diversification.
It aims at fixing broken value chains to increase efficiencies, reduce post-harvest loss, and increase smallholder farmer incomes and SME agribusiness profitability.
Investment instruments will be primarily quasi-equity (convertible bonds, preference shares and structured royalties) and direct equity. The ticket size ranges from $500, 000 to $5 million.
The Fund is aligned with the Bank’s Ten Year Strategy focusing on inclusive growth, strengthening agriculture and food security, and access to local SME finance.
It added that this encapsulated in the Bank’ High Five Development Agenda for Africa, specifically Feed Africa and Industrialise Africa.
It is also in line with the Bank’s Strategy for Agricultural Transformation in Africa (2016-2025), Strategy on Jobs for Youth in Africa (2016-2025).
Others are the Bank’s Country Strategy Paper for Nigeria (2013-2017), which supports an enabling environment for agriculture.
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FirstBank’s DMD hosts SME entrepreneurs at EDC
FirstBank’s Deputy Managing Director, Gbenga Shobo will play host to over 100 Small and Medium Enterprises (SME) entrepreneurs across various business sectors.
He will speak at the maiden edition of the 2016 Enterprise Development Centre (EDC) /FirstBank SME Breakfast Series tagged: The Economy and You! The breakfast session will hold on Tuesday, April 19, at the Lekki–Epe Expressway premises of EDC, a School of the Pan-Atlantic University, Lagos.
FirstBank commenced the sponsorship of an SME Radio programme, The Economy & You! in 2015 and it has featured over 30 entrepreneurs since its debut. The programme, which is broadcast live every Sunday at 6:15pm on Rhythm FM (Network) with a repeat broadcast streamed on the Enterprise Development Center (EDC) website www.edcradioonline.com every Wednesday is a joint initiative of EDC and First Bank of Nigeria Limited. The overarching objective is to educate, inform and build capacity for small business owners by providing them with the information and resources needed to grow their businesses.
The weekly programme focuses on live interviews of industry experts, accomplished SME entrepreneurs and regulators who take listeners through the process of identifying and making use of opportunities that abound for small and medium businesses in the economy. Discussions also dwell on how SMEs can prepare business plans, budget, deal with tax issues and government policies etc. The breakfast session with FirstBank’s Deputy Managing Director would strengthen the Bank’s interaction with SMEs and provide practical help to support their business.
According to Deputy Managing Director, First Bank of Nigeria Limited, Gbenga Shobo, the SME market is one of the bank’s strategic platforms to stimulate economic development. “It remains our business to foster the growth and development of small and medium scale businesses in Nigeria as the No1 SME Bank in Nigeria”, he further stated.
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FirstBank unveils SME offerings
FirstBank of Nigeria Limited has unveiled its new SME campaign specially designed to help Small and Medium Enterprises grow with diverse product and service offerings.
The lender said it started small and having grown through various stages, has understood the business journey for SMEs.
It also said it is passionate about supporting them to ensure continuous business growth.
“Over the years, we have displayed an unwavering commitment to the business success of SMEs in Nigeria with its cocktail of products and bespoke solutions, specifically designed to help grow and sustain SMEs. Given that SMEs are pivotal to national development, we are committed to ensure sustained business growth as well as provide the necessary services to grow businesses and Nigeria’s economy at large,” he said.
He said the bank provides the right product mix and services with professional staff designated to work with the business owner to provide flexible and dependable services, helping SMEs to achieve consistent growth and success in every area of business.
According to the bank’s spokesperson, Folake Ani-Mumuney, businesses require more than loans, and the Bank makes available non- financial services to its customers such as access to administrative assistance, translation services, conferences, seminars, forums and other business support services.