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Asia Development Bank calls for prioritising MSME development to sustain growth

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Manila, Oct. 25, 2023: Promoting post-pandemic recovery in Asia and the Pacific needed, to prioritise the development of micro, small, and medium-sized enterprises (MSMEs).

This is according to a new Asian Development Bank (ADB) report released on Tuesday.

Providing MSMEs with policy and data support can boost their role as drivers of growth in the future, said the Asia Small and Medium-Sized Enterprise Monitor 2023.

It focuses on economies in the Pacific, looking at how small businesses can contribute to resilient growth.

“Job creation is a critical challenge for Asia and the Pacific,’’ said ADB Chief Economist, Albert Park.

“In the Pacific, remittances sent by emigrants to advanced economies can support small businesses and create employment opportunities for women and younger workers.

“Tourism and agribusiness, where MSMEs actively participate, drive Pacific economies.

“Their sustainable growth helps strengthen MSME dynamism and raises national productivity,’’ Park said.

MSMEs remain important drivers of growth across developing Asia and the Pacific, accounting for an estimated 96.6 per cent of all enterprises.

That 55.8 per cent of the workforce, and 28 per cent of economic output on average, the report said.

Digitalisation offers new growth opportunities for small businesses and promotes formal business registration, “but many in the Pacific continue to use cash for transactions,’’ the report said.

The report noted that key constraints include underdeveloped infrastructure, limited e-payment options, a lack of supportive regulatory framework, and a lack of familiarity among small businesses with digital devices or limited literacy in digital operations.

Broadening alternative financing options, particularly digital financial services, can provide growth capital for innovative small firms and start-ups, helping build a national entrepreneurial base, the report said.

MAN

MAN lauds credit facility to re-energise MSME, real sector

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Lagos, Aug. 1,  2023: The Manufacturers Association of Nigeria (MAN) has commended President Bola Tinubu for the proposed credit interventions to revitalise the manufacturing sector and Micro, Small and Medium Enterprises (MSME) and mitigate the impact of fuel subsidy removal.

Director-General, MAN, Mr Segun Ajayi-Kadir, said on Monday night in Lagos in reaction to the President’s broadcast.

President Tinubu unveiled plans to provide a N75 billion credit facility between July 2023 and March 2024 to 75 enterprises to strengthen the manufacturing sector.

He added that his administration would energise MSMEs and the informal sector with N125 billion among other schemes to engender sustainable economic growth.

Ajayi-Kadir noted that the assurances in the President’s broadcast represented part of the follow up measures manufacturers had appealed for and was more beneficial than palliatives that would only give nominal relief.

He lauded the Federal Government’s move to work in a coordinated manner with local and state governments to deliver interventions that would cushion the effect of the hardship across the socio-economic brackets.

The MAN DG said the recently signed four executive orders had set the stage for the much sought-after relief for the manufacturing sector.

According to him, it had become possible to return to their business projections and to look toward a possible profitable production in the affected sectors.

Ajayi-Kadir said the promise that 75 manufacturing enterprises would access N1billion credit at 9 per cent interest rate per annum and working capital was commendable.

He noted that the allocation of N125 billion to energise the MSME segment would give fillip to their businesses and help overcome the paucity of funds occasioned by low capacity utilisation and unprecedented low sales in recent times.

“It is a good start to begin to address the dearth of loanable funds in the face of rising lending rate occasioned by the continued increase in the MPR by the Central Bank of Nigeria (CBN).

“It is however very important and critical that the vehicles for the delivery of these loans should be carefully selected and the implementation diligently monitored.

“The Bank of Industry (BOI) has shown excellent performance as an appropriate transaction structure for such facilities.

 It is equally important to ensure that the promised 3000 units of 20-seater buses be procured from indigenous automobile Industries.

“This is a golden opportunity for the Federal Government to demonstrate unfailing commitment to the implementation of the subsisting Executive Order 003, which prioritises the patronage of made in Nigeria products,” he said.

MSMEs

REA targets 24,500 MSMEs for energy-efficiency using appliance

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The Rural Electrification Agency (REA) says it aims to provide 24,500 Micro, Small and Medium Enterprises (MSME) with energy-efficient electricity through the Productive Use of Equipment (PUE) and appliances.

The REA management in a statement in Abuja on Sunday said that the initiative, which would ensure that 1,050,000 people have improved access to energy services, would be done under the Nigeria Electrification Project (NEP).

According to the agency, the PUE is part of its efforts to ensure that rural and underserved communities have unhindered access to energy-efficient and electricity productive equipment.

 The Managing Director of REA, Mr Salihijo Ahmad, speaking during the grant agreement signing of the use of the equipment and appliance, said that the project is being supported by the African Development Bank (ADB).

He explained that the PUE would drive the sustainability of off-grid energy infrastructure across communities in the country.

”The PUE will encourage the use of low-cost productive appliances in unserved and underserved communities to improve rural productivity, economic growth and also rural development.

“We are here for the grant agreement signing for the productive use Appliances Component of the Nigeria Electrification Project (NEP) under the African Development Bank funding stream.

“At REA, our mandate is to provide access to electricity to unserved and underserved households and MSMEs in rural communities of Nigeria,” he said.

Ahmad said that the agency from inception has continued to collaborate and support private-sector participation in its dedication and commitment to achieve this mandate.

He said that beyond keeping the lights on, REA was deliberate about the optimisation of productive use of equipment and appliances to catalyse socio-economic development in off-grid communities.

“We understand how important it is for beneficiaries of off-grid technologies to appreciate the windows of possibilities sustainable energy presents. This is why this component is very important.

“Through NEP, which is funded by the World Bank and the African Development Bank, established to increase access to electricity services to unserved and underserved households.

”MSMEs in the rural communities as well as Federal Universities and Teaching Hospitals throughout Nigeria,” Ahmad said.

According to him, the event marks a milestone in the implementation of the ADP funded NEP where Energy Access Companies (EACs) are supported through the energy efficient productive use subsidy programme.

”To encourage the use of low-cost productive use appliances at unserved and underserved communities in order to improve rural productivity, economic growth and also rural employment.

“I would like to use this opportunity to appreciate the energy access companies for their continuous cooperation.

”I urge you all to align fully with the impactful objectives of this programme in order to achieve transformative change.

“We have achieved a lot through the NEP but you will agree with me that there is so much more to be done, and we must continue to push forth to achieve our objectives,” he said.

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Bank pledges to support MSMEs

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The Development Bank of Nigeria (DBN), has pledged to continue addressing financial challenges of the Micro, Small and Medium Enterprises (MSMEs) to transform them into instrument of positive development.

The Managing Director of the bank, Dr Tony Okpanachi, stated this at the regional Development Bank of Nigeria (DBN) MSMEs Summit in Kano on Thursday.

The theme of the 2022 Summit is: “the Role of Development Banks in Inclusive Financing”.

He said that the theme would give them opportunity to interact with SMEs in the region with a view to addressing them.

“DBN will continued to work toward building capacity of MSMEs, eliminating their financial constraints and transform them into instrument of positive and sustainable development,” he said.

He revealed that MSMEs in Nigeria play crucial role in economic growth of poverty reduction, job creation, as well as, wealth creation, among others .

Okpanachi said that DBN organized the summit as a stakeholders engagement strategy to create awareness among the MSMEs sector.

“According to the Nigeria Bureau of Statistics, SMEs in Nigeria have contributed about 48 per cent of the national Gross Domestic Product (GDP) in the last five years.

“With a total number of about 17.4 million, they account for about 50 per cent of industrial jobs and nearly 90 per cent of the manufacturing sector,” he said

“MSMEs plays role in several sectors including agriculture, transport and logistics, tourism and hospitality, textile, leather and solid minerals, among others,” he said.

In his keynote address, Alhaji Tajudeen Dantata, the Chairman of Dantata Foods, said that the MSMEs in Nigeria facing some challenges.

He listed the challenges to include lack of access to credit facilities, inconsistencies of government policies, limited infrastructure, lack of land, unavailability of local raw materials, among others.

Dantata stressed the need to address those constraints for the development of the sector and the economy in general.

Also speaking, Gov Abdullahi Ganduje of Kano state, who was represented by the state Head of Service, Alhaji Usman Bala, said that the state government continue to provide enabling environment for the MSMEs to thrive.

He said that was because MSMEs were critical to ex growth, poverty reduction and jobs creation.

MSME-SURVIVAL-FUND

Nigeria warns against fraudsters in MSME Survival Fund

The Federal Government has cautioned Nigerians to beware of the activities of fraudsters claiming to be disbursing Micro, Small and Medium Enterprises (MSME) Survival Fund of 80, 000 naira.

A statement issued on Monday by Mr Tola Johnson, Coordinator, Project Delivery Office (PDO) of the Federal Government’s MSME Survival Fund Scheme said the fraudsters try to steal from unsuspecting members of the public.

“The fraudsters scam the public under the guise of the MSME Survival Fund Scheme,” he said.

Johnson stated that tracks of the survival fund scheme have closed, but even the initial verification process did not require beneficiaries dropping their account details of individuals as being demanded by fraudsters in the ongoing scam.

“The public is thereby notified that requests circulated via social media and SMS for people to disclose their account details to benefit from the Survival Fund Scheme is a scam.

“Hence, members of the public should disregard such requests.

“The public is asked to note that the only valid number for inquiries and information for the Survival Fund Scheme is 07004000500.

“The Scheme is also not disbursing the sum of N80,000 or any amount in grant or loan to individuals or businesses as advertised by the fraudsters.

Johnson also stated that the committee in charge of the survival fund headed by the Minister of State, Industry, Trade and Investment, Amb. Maryam Katagum, has contacted law enforcement agencies to track and bring the fraudster to justice.

He further stated that further developments in the implementation of the survival fund scheme would be communicated to the public through formal channels established by the steering committee.

MSMEs

NAFDAC emphasis importance, contributions of small scale enterprises

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Prof. Mojisola Adeyeye, the Director General of the National Agency for Food and Drug Administration and Control (NAFDAC), has said that Micro, Small and Medium Enterprises (MSMEs) were too critical a sector to be ignored.
A statement by the Agency’s resident media consultant, Mr Olusayo Akintola, in Abuja, quoted Adeyeye as reiterating the important role MSMEs played in the nation ‘s economy.
The DG pledged that the agency would continue to render its support to enable them continue to act as catalysts to economic rejuvenation.
The Director General (DG) said that globally MSMEs had contributed up to 45 per cent of total employment and 33 per cent of Gross Domestic Product (GDP) in emerging economies.
“In a recent review of a 2017 survey on MSMEs, it is revealed that in Nigeria, there were 41.4 million MSMEs and about 99 per cent belong to the micro sub-sector, which is the bedrock of Nigeria’s industrialization.
“This is the most important component of industrialisation as set out in the Economic Recovery and Growth Plan of the federal government, the significance of MSMEs in the nation’s economy is critical.
Adeyeye urged entrepreneurs to be patient in obtaining NAFDAC’s certification before exporting goods, especially in the light of the revamped relationship between them and the agency in recent times.
“NAFDAC’s timeline for the processing of products for registration is 90 days and there is consistent efforts to ensure timelines are met, amongst which are the deployment of a robust e-registration platform.
“The e-registration platform is called NAFDAC Product Administration and Monitoring System (NAPAMS), which has the capacity for monitoring and assessment of timelines,” Adeyeye said.
She explained that If anybody went online to start the e-registration process and encountered any challenge, “there is an online assistant that is always ready help in case of any challenge during the registration”.
Some people who have products that they think they can export, take shortcuts and they don’t also go to NAFDAC to test their products before they are exported.
“Thereafter, the government of the receiving country stops the product, and they reject it and destroy it, we all need to learn not to take shortcuts.
“This agency will not compromise global best practices and standard under the guise of placating its clients, who have refused to follow due process to get the required identification certification”, the NAFDAC DG said.
Adeyeye encouraged entrepreneurs to always wait for a duration of four and a half months to get their products registered.
She added that some of the compliance issues that were frequently observed ranged from labelling lapses, inadequate documentation, increased product analysis failure rate and product rejects, especially with highly sensitive products.
However, the NAFDAC DG observed that the ongoing trainings and re-trainings of prospective NAFDAC applicants/MSMEs entrepreneurs on principles of good agricultural practices and others were yielding the desired reduction of such failures.
On the granting of approval for MSME production sites, the NAFDAC boss said that if a site designated for manufacturing and packaging was found to be filthy for the prospective product, NAFDAC would not approve such site.
She, therefore, admonished MSMEs owners to always ensure that they complied with all relevant government policies and regulations; collaborate more amongst themselves, to jointly engage government constructively.
Adeyeye noted that if there was a sector that had got the most needed support from NAFDAC, “it is the MSMEs, with the reduction in the registration fee by 80 per cent within six months in the year 2020.”
The first 200 applicants received zero registration fee, she said, adding that the agency also waived late renewal fees for those whose NAFDAC registration licenses expired during the same period.
According to her, the palliative given to the MSME sector in 2020 was not given to any other sector, because of its importance to the nation’s economy.

MSMEs

MSME operators seek more research, fund to boost organic sector

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Micro, Small and Medium Enterprises (MSMEs) operators have sought for funding and more research into organic products to expand their markets and boost healthy living and local content.

Some of the MSMEs operators spoke in Abuja at the just concluded Nigeria @ 60 exhibition on Made-in-Nigeria Goods and Services.

The exhibition, aimed at promoting local content and investment., held from June 15, to June 19.

Mrs Abida Rabiu, Founder of Zholkha Global Resources Ltd., while acknowledging that Nigeria was naturally endowed with organic products needed to maintain healthy living and treat diseases, called for more research to boost the sector.

She said the company produces 100 per cent natural herbal teas, souces, spices, marinades, condiments and luxury perfumes locally sourced from roots, seeds and herbs.

She named the raw materials as: Doum Palm (Goriba), Moringa, Dates, Hibiscus leaves (zobo), Rosemary and black pepper, among others.

According to her, these are blended into aromatic paste which contains rich nutrients especially vitamins that enhance, detoxify the body and improve its metabolism as well as boosting immune system.

Rabiu, while noting that sourcing raw materials was easy for her also advised Nigerians in the sector to desist from relying on imported raw materials.

She added that Nigeria had abundant materials for use, especially in the rural markets.

“We have these roots, seeds and leaves naturally growing in excess; the rural dwellers are ready to go over the mountain to pick fresh ones.

“All we need to do is to do more research and see how we can use them for our daily needs and export.

“These products can cure and manage many diseases. Typical examples are doum palm and moringa seeds which lower and regulate the blood and sugar level.

“With good research on this, it will assist patients with High Blood Pressure (HBP) and Cancer.

“Tea or drinks from these natural products equally give energy.

“Instead of taking artificial energy boosters that have preservatives, it is better and healthier to use these organic products without side effects,” she said.

She, however, expressed hope to have access to international certification and less cumbersome export processes for market ability.

Mrs Famida Abubakar of First Class Group Refreshments Ltd., an indigenous company which produces healthy, continental, local food and snacks, also called for government funding to acquire advanced machines needed for production.

Its products are dried processed lean beef (Kilishi), shredded beef and chicken (Danbun) groundnut crunch (Kuli-kuli), groundnut prince cookies (Dan Sarki), and Sesame Seed (Ridi).

According to Abubakar, its products have NAFDAC certification numbers and are mostly oven fried to avoid contamination from flies through sun drying which give them edge for export.

Also speaking, Mrs Bamisaye Vivyne, Chief Executive Officer of Macariusville Dates company, which proceesed dates and other Nigerian agricultural products into powder for natural sweetener and supplements, also sought for more research and visibility.

She, however, lauded the exhibition, adding that it had spurred consumers’ patronage and interest in various made-in-Nigeria products being displayed and called for more visibility.

She decried other challenges affecting cost of production in the sector especially dearth of infrastructure and increase in electricity tarrif among others.

NAN recalls that the nation turned 60 years on Oct. 1, 2020 while the exhibition was focussed on depicting ingenuity of indigenous entrepreneurs by drawing attention to Nigeria’s endowment to be harnessed for export and common good of all.

The exhibition was organised by the Inter-Ministerial Committee on Nigeria @ 60 in collaboration with Business Visa and Trainings Co. Ltd. to mark Nigeria @ 60 celebrations.

Considering the significance of the age in our journey to nationhood, President Muhammadu Buhari directed that the celebration should be made a year-long event to end in September.

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Nigeria resumes payment of grants for survival funds payroll support

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Tanko Mohammed

The next batch of beneficiaries of the Survival Fund’s Payroll support on the platform of Economic Sustainability Plan (ESP) would start getting their grant next week.

The one-off grants is to spur general medium and small enterprises in furtherance of the goal of the present administration.

This is expected to increase the number of beneficiaries under the Payroll Support track, which has so far benefitted a total of 319,755 Nigerians, while 265,425 Nigerians are beneficiaries under the Artisan and Transport Support track.

Of the 265,425 beneficiaries, there are 118,581 beneficiaries under Artisan support track, and 146,844 beneficiaries under the Transport track.

The payroll support track aims to support 500,000 beneficiaries with payment of up to N50,000 per employee for a period of three months.

The MSME Survival Fund, a component under the Nigerian Economic Sustainability Plan, NESP, is designed to support vulnerable Micro Small and Medium Enterprises (MSMEs) in meeting their payroll obligations and safeguard jobs in the MSMEs sector.

The scheme is estimated to save not less than 1.3 million jobs across the country and specifically impact on over 35,000 individuals per state.

Applications for the MSME Grants and the Guaranteed Off-take Stimulus Scheme opened on February, 9th, 2021 and closed on March 1, 2021.

The General MSME Grant is a one-off grant of N50,000 that will be given to each qualified MSME as direct cash injection into their enterprise. The total number of beneficiaries in this track is 100,000 spread across the States.

In the same vein, under the Artisan Support scheme, a total of 333,000 Artisans and Transport business operators nationwide will get a one-time operations grant of N30,000 per beneficiary to reduce the effects of income loss due to the COVID-19 pandemic.

Also, 172,129 businesses have so far benefitted under the under the ESP Survival Fund formalization support track, which is aimed at registering 250,000 new businesses for free with the Corporate Affairs Commission (CAC).

The formalization support scheme had commenced on the 26th of October, 2020, with the registration by aggregators – CAC registration agents across the 36 states and the FCT.

The processing of applications for the Guaranteed Offtake Stimulus Scheme is still ongoing and the commencement of this track will be announced on a later date.

The Guaranteed Off-take Stimulus Scheme is aimed at protecting and sustaining the incomes of vulnerable Micro and Small Enterprises by guaranteeing the offtake of their products.  A total of 100,000 Micro and Small Enterprises are to benefit from the scheme.

The Economic Sustainability Plan (ESP) was approved by President Muhammadu Buhari on June 24, 2020, as a N2.3 trillion stimulus plan to mitigate the socio-economic effects of the COVID-19 pandemic. The Plan was developed by the Economic Sustainability Committee chaired by Vice President Yemi Osinbajo.

SMEDAN

MSMEs, future of Nigeria’s economy – SMEDAN

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By Tanko Mohammed

Dr Dikko Radda, Director-General (DG), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), says the future of Nigeria’s economy rests on Micro, Small and Medium Enterprises (MSMEs).

Radda, who stated this on Tuesday in Makurdi at the inauguration of the Benue Council on MSMEs, maintained that small businesses were the hope and future of the country.

He explained that the mandate of SMEDAN was to ensure and facilitate the growth of SMEs in the country.

According to him, the agency had carried out a number of programmes that had impacted on small businesses in the country.

Radda listed such programmes as Entrepreneurship Development, Development of SMEs capacities and Conditional Grants Scheme, among others.

He said: “As the vanguard agency for MSMEs development, it is our conviction that small businesses are the hope and future of our nation.

“The MSMEs sub-sector presents to us a true opportunity to deepen our economy, increase industrial output, reduce import dependency and free ourselves from the stranglehold of the mono-product called oil.

“As you all know, the unhelpful effects of oil, which has led to a reduction in our national earnings, prevented us from fully exploiting other natural endowments and indeed, contributed to youth restiveness spreading like wild fire.”

The director-general explained that the core responsibility of the inaugurated state council was to coordinate all the activities of SMEs for the growth of the economy.

He said that the council would also provide guidance on the policies and strategies to drive the development of the MSMEs sub-sector in the state, among other duties.

While inaugurating the committee, Gov. Samuel Ortom of Benue said that his government might lease or sell all of its moribund industries.

Ortom said that his administration had earlier inaugurated the state council on commercialisation and privatisation to reposition the moribund public-owned enterprises in the state.

He expressed the regretted that Taraku Mills, with the capacity of producing 370 tones of grand oil and animal feeds per day, was among the companies wasting away in the state.

According to the governor, the state government lacks the capacity to undertake commercial ventures.

He urged the council members to recommend policies that would improve the state and the country’s economy, adding that it was critical in building the state’s economy.

“This council is vital in harnessing the efforts of micro, small and medium enterprises as critical stakeholders in building the state economy,” he said.

Ortom said that his administration had commenced the process of setting-up a Micro, Small and Medium Enterprises Development Agency in the state.

He said that the State Executive Council had already given approval, adding that a legislation was being awaited from the State House of Assembly.

Mr Merga Kachina, Chairman of the council and Commissioner for Industry, Trade and Investment, said that members would work hard to justify the confidence reposed in them.

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MSMEs Survival Fund achieving results – Presidency

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By Tanko Mohammed

The presidency says feedback from across the country indicates that the Micro Small and Medium Enterprises (MSMEs) Survival Fund is achieving the desired result, giving succour to small businesses.

Mr Tola Johnson, the Special Assistant to the President on Micro Small and Medium and Medium Enterprises (MSMEs), Office of the Vice President, disclosed this while giving an update on the ongoing implementation of MSMEs Survival Fund on Tuesday in Abuja.

The Survival Fund Scheme for MSMEs is captured under the National Economic Sustainability Plan drafted by the Vice President Yemi Osinbajo-led Economic Sustainability Committee and approved by President Muhammadu Buhari.

“The assurance we are giving Nigerians is that this scheme was approved by the president; he has made provisions for the funding of the scheme.

“Nothing is going to change; nothing is going to affect the approval; nothing is going to affect the implementation of programme; nothing is going to affect the financial inclusion in the scheme; so whatever was promised to Nigerians will be adhered to.

“You can see from across the country that people have started receiving salaries from the scheme; artisans have started getting funding; people have started registering new businesses and all these are not going to stop.

“We are going into the next track- the Guaranteed Off take; we are going into the transport scheme and we are going to execute the general grant; nothing has changed in the scheme in terms of implementation.’’

Johnson said that he had seen people who collected N30, 000 Payroll Support and got their businesses revamped.

According to him, the ordinary Nigerians are beginning to realise that they now have a government that meant well for the downtrodden.

“The government is connecting directly with them; no intermediary.

“The president instructed the minister that the money must go directly to the beneficiaries not through intermediaries and the minister passed same directive to me.

“A lot of people came out and said, we don’t know anybody and we benefited; we are building a system that works regardless of who is there.

“There is no aspect of the scheme that you have to pay anybody one kobo; whether you apply online or manually,’’ he said.

Amb. Mariam Katagum, Minister of State, Trade and Investment said that the steering committee was working to ensure that the process of enlisting prospective beneficiaries was smooth and in compliance with government regulations.

She said that the committee at the statutory meeting of Nov. 17 approved a white list of beneficiaries fully verified for disbursement and payments to the approved block of beneficiaries commenced on Nov. 17.

The minister said disbursements were approved as follows – number of MSMEs – 16,253, number of beneficiaries – 101,567,  N30,000 each for 94,696 employees/beneficiaries, N50,000 each for 6,871 employees/beneficiaries, 2.6 per cent beneficiaries with special needs and 43 per cent female employees/beneficiaries.

“So, disbursements for Payroll Support is ongoing across the country, however, due to the inability of some states to meet their target application numbers, the portal will be reopened to accommodate such states.

“The key milestone under this track is the verification for payment of 101, 567 beneficiaries sourced from 16,253 businesses as at Nov.17.

“The distribution of beneficiaries across the country include Lagos State, 25,000; Kano, 17,000; Abia, 16,000; and 13,000 per state for the others,’’ he said.

She said that artisans in some states have started receiving the N30, 000 one-time grant, under the Artisan Support Scheme.

Katagum listed the states as Lagos, Ondo, Kaduna, Borno, Kano, Bauchi, Anambra, Abia, Rivers, Plateau and Delta states and the FCT.

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