MSMEs need access to affordable funds for growth – SMEDAN
The need for affordable finance for MSMEs in Nigeria again came to the front burner as the country joined the rest of the world to mark the International Day for Micro, Small and Medium Enterprises (MSMEs). At a press briefing to kick start this year’s celebration, the Director, Enterprises Development Promotion at the Small and […]
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The need for affordable finance for MSMEs in Nigeria again came to the front burner as the country joined the rest of the world to mark the International Day for Micro, Small and Medium Enterprises (MSMEs).
At a press briefing to kick start this year’s celebration, the Director, Enterprises Development Promotion at the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr Monday Ewans, who represented the Director General of the agency, Dr Dikko Radda, said lack of collateral is a major challenge in accessing the N220 billion CBN MSMEs funds and other government funds.
“As you are also aware, access to affordable finance is a major challenge to the operations and sustainability of MSMEs in Nigeria. The theme of the 2019 World MSMEs day celebration is ‘Big Money for Small Business: Financing the SDGs’, Ewans said.
He said the 2019 MSMEs Day is expected to raise awareness around the need for greater investments in micro, small and medium enterprises in developing countries. Again, the day is to provide thought leadership, recommendations and practical tools that will lead to greater investment in small businesses i.e how to bridge the gaps in finance, knowledge and skills.
The theme builds on the ongoing conversation on financing for development and links to the flagship publication of the International Trade Centre, the 2019 SME Competitive Outlook, which focuses on increased financing for SMEs for achieving sustainable development.
He said the agencies Conditional Grant Scheme (CGS) and One Local Government One Programme (OLOP) are ways through which they have been providing funds for MSMEs across states.
The National MSMEs Survey conducted by SMEDAN in partnership with the National Bureau of Statistics (NBS) in 2013 revealed that there are about 37 million MSMEs which employ 59.7 million persons representing 84.01% of the labour force, contributing 48.47% to the national GDP.