SMEs

Abuja, Feb. 16, 2024: The Federal Government is intensifying efforts to formalise activities of Small and Medium Enterprises (SMEs) to increase the country’s tax net, an official has said.

The Registrar- General Corporate Affairs Commission (CAC), Hussaini Magaji stated this on Thursday while disclosing that over 2.5 million businesses had been brought for registration so far through this effort.

The Registrar- General was responding to the Managing Director of Palmpay Nigeria Ltd., Chika Nwosu, who visited him to present over 219,000 agents (small businesses) to him in Abuja.

Magaji said the provisions of the Companies and Allied Matters Act (CAMA) made it mandatory for any business taking place in Nigeria to register with the Corporate Affairs Commission.

“Section 863 (2) made it to the extent of criminalising any business taking place in Nigeria without registration.

“And in our drive to ensure compliance, we are able to force registration of small businesses of over 2.5 million so far this year alone.

“Today another company, Palmpay, is handing over 219 ,000 small businesses for registration.

‘ ‘In other words, we are creating jobs for 219,000 youths.

“We agreed to regularise them in order to achieve the Renewed Hope Agenda of President Bola Tinubu, including job creation, financial inclusion, and access to wealth to the youth,” he said.

On the upsurge in registration of small businesses, Magaji said there was a drive by the present administration to formalise small businesses into the system.

He said the administration also aimed at increasing the tax net of the country and to enable the government to track the activities of the SMEs.

“The government will have the opportunity to track terrorism and money laundering. That’s the essence of the registration,” he said.

Earlier, the Managing Director of Palmpay expressed the desire of the company to partner and support the commission to achieve its mandate of formalising the sector.

“Our business is one of the largest in Nigeria, with over 30,000 employees and over 30 million Nigerians doing businesses and using our application to do various transactions.

“We are ready to partner with the CAC and to support the government of Nigeria by introducing most of our agents who are doing businesses on our platform and using our POS.

“We have over 219,000 agents on our platform to hand over to CAC today,” Nwosu said.

The Moniepoint had brought in over two million businesses; Opay, over 300,000; and Kudimata, 30,000 businesses for registration .

Abuja, Dec. 9, 2023: The Chairman Organising Committee of National Advertising Conference (ARCON), Tunji Adeyinka says Small and Medium Enterprises (SMEs) play a critical role in driving economic growth of the nation.

Adeyinka said this at the ongoing National Advertising Conference (ARCON) holding in Abuja.

The conference has as its theme,:” Marketing Communication as an Enabler of National Transformation”.

He expressed optimism that the conference would  address issues on the role the industry played in resettling the national discourse,  fueling unity, social cohesion and economic growth for the country.

He said:” we are particularly interested in the Small and Medium Enterprises (SMEs) as they are critical drivers of economic growth with a current contribution of 48 per cent to our Gross Domestic Product (GDP) .

”We will look at the compliance of SMEs to the advertising law and also how the regulator can also work to ensure that it is easy for the SMEs to reach the market.”

According to Adeyinka, the conference aims to determine the size of the marketing communications industry and understand its contributions to GDP.

He said it also aimed to change the narrative and develop a brand of Nigeria campaign from the industry perspective.

‘We want something that begins to help advocacy, the development of the profession and the entire industry ,by taking topical issues and working those issues through.

”Following the numerous economic,  social and political challenges the country is facing, it is imperative to create a path out of the difficulties.

The chairman expressed the commitment of the organisation to continue to partner with the government and stakeholders to boost the economy.

Adeyinka said:” I don’t think that the industry at any time has a problem with partnering with government at the national level or the sub national level.

”You will find out that some of us are working for them already. So its just to continue to do more work.

”The industry is available and is seeking for institutions and government to see the importance of branding, marketing and communications in citizen engagement.

”And to see what they can render as a service which has to be effectively communicated.”

Lagos, Dec. 7, 2023:  Firstbank of Nigeria Ltd. has cautioned Small and Medium-sized Enterprises (SMEs) against seeking financing from unlicensed money lenders generally referred to as loan sharks.

Dr Abiodun Famuyiwa, Head, SMEs Banking and Money Transfer of the bank, gave the warning at Firstbank SMEConnect Webinar on Wednesday.

The webinar had the theme: “Pioneering SME Success: Growing Profit and Sustainability Goals’’.

The webinar, organised in collaboration with the MESH Consult Ltd., was aimed at providing SMEs with a comprehensive understanding of the strategies and approaches necessary to achieve sustainable growth and profitability.

According to Famuyiwa, in sourcing for finance, it is advisable for SMEs to avoid unnecessary financial pressure by engaging “loan sharks”.

“A number of times when they are trying to raise capital, we discovered that what most SMEs do, desperately, when they cannot get family members to give them money, is to go to “loan sharks”.

“The damage that has been caused by these “loan sharks” are many, because they give you at an interest rate that is off the roof; by the time you are struggling to pay the interest, the capital is still waiting for you.

“Most times, the profit from these businesses is so marginal that you will not be able to cope with the high cost.

“So, please avoid expensive sources of funds like these loan sharks, they can be very damaging to the business. Records show that we have lost some great SMEs because some of them, out of pressure, commit suicide,’’ he said.

He urged them to always seek financing from reputable and regulated financial institutions.

Famuyiwa, while providing growth levers, advised SMEs to ensure that their businesses are registered, either as a sole proprietor, private company or a limited liability, before approaching banks.

He urged SMEs to have proper financial records, adequate sales turnover, strong cash flow from business, tax identification number and ensure they also filed their annual returns.

He advised them to ensure they had a valid bank verification number, saying it is important for their businesses.

He also advised them to take advantage of technology to improve their business, especially to boost their relationship with their customers.

He said that Know-Your-Customer documents and clean credit bureau report was also important when approaching the bank for finance.

He introduced some of the products that Firstbank has for SMEs that would aid their business and they would not need them to pay an Annual Maintenance Charge (AMC).

“In Firstbank, we have a FirstSME current account that you can just open without paying any AMC and be running your business either as a nano, micro or small and medium-sized enterprises.

“The account comes in three variants with exciting features – FirstSME Basic, FirstSME Classic and FirstSME Deluxe; with these, you can pay money into that account without any AMC charges.

“This is one of the strong value propositions that First Bank has put forward to support every business; whether that business is registered or not, you can run the business,’’ he said.

He added that the bank also had other bouquets of products that would support any type of business and meet their requirements.

The highlight of the programme was a free offer of the Firstbank Point of Sale (PoS) machines to over 300 SME operators who joined the meeting.

Lagos, Nov. 29, 2023: Some stakeholders have stressed the need for increased access to capital, technology and markets for the Small and Medium Enterprises (SMEs) to ensure global competitiveness.

They spoke at the Nigerian-Canadian Business Association (NCBA) Second Edition Business Roundtable, on Tuesday in Lagos.

The theme of the event was: “Enabling Growth by Unlocking Access to Capital, Technology, And Markets.”

NCBA, established in 2011, aims to promote bilateral business relationships between Nigeria and Canada to foster economic growth, educational advancement and cultural understanding, among others.

Mrs Ebi Obaro, Chairperson, NCBA, stated that the priority today was to empower SMEs on their path to success.

This, she said, was in acknowledgement of their crucial role in spurring innovation, job creation, and fostering prosperity in the business landscapes of Nigeria and Canada.

Obaro stated that by addressing these important factors, exceptional chances for growth and sustainability would be opened up.

“We understand that SMEs face difficulties in obtaining the funds required for expansion and innovation so I invite us to share ideas on how we can jointly establish a system that makes it easier for SMEs to access capital.

“Technology is drastically changing the future of business and holds a lot of potential for SMEs, so let us unlock access to technology and use its power to increase global competitiveness.

“Our goal is to explore the many ways in which we can harness technology to improve efficiency and productivity of businesses in both Nigeria and Canada to increase global competitiveness,” she said.

Franca Ciambella, Canadian lawyer and businesswoman, said Nigeria must begin to project its economic potential and change its negative perception globally to spur investment inflow and drive economic growth.

Ciambella who acknowledged the huge level of curiosity in Canada about Nigeria and the fact that Nigerians were doing so well in Canada, said there was still so much negative perception about the country.

According to her, this represents a disconnect about the true potential of Nigeria, a country filled with intelligent professionals, immense population, talents and skills.

“This is my acknowledgement that Nigeria is indeed a powerhouse particularly seeing that Nigerians in Canada are doing so well.

“However, the country can achieve more, and a message has to be sent out that things are being done about the energy, infrastructure, and other economic concerns,” she said.

Dr Chinyere Almona, the Director-General, Lagos Chamber of Commerce and Industry (LCCI), noted that in spite of the opportunities for SMEs across Africa, they largely remained uncompetitive due to some harsh economic conditions.

Almona, represented by Dr Sonnie Omeiza, Director, Trade Promotion Council, LCCI, called for policies, access to power, streamlined taxations to stimulate their growth and development.

She, however, urged SMEs to be more prepared and properly positioned to take advantage of these policies to be better competitive under the Africa Continental Free Trade Area (AfCFTA).

“There’s also the need for the conversation on awareness for these businesses to the available policies on ground and we must also help them strengthen their management structure to drive their sustainability,” she said.

Mr Babatunde Ajayi, Head, SME Business, United Bank for Africa (UBA), said the bank had identified agro-processing, automotive, pharmaceuticals and transport and logistics as sectors that would drive economic growth.

Ajayi stated that the bank was committed to providing financial facilities for SME across those sectors, by providing funding facilities minimum of $2,500 and up to $150,000 in local currency to elevate businesses.

He, however, called for campaigns to drive awareness of SME policies to the grassroots to ensure their participation from government programmes and policies.

“Collaboration between government, trade association, banks and SMEs is important to drive access to export markets particularly the AfCFTA.

“There’s also the need to harmonise requirements across the African trade corridor to spur trade and economic development,” he said.

Mr Zubbi Nwosu, the Managing Director, GIZMOTECH Nigeria Ltd., said operational issues at the borders must be addressed for economic growth and development.

Newish also called for increased funding for SMEs,  reduction in excise duty and government concentration on tackling illegal export.

Nwosu also urged government to address its spending problem, open up the ports, bring inflation down for Nigeria to grow through the roof.

“There’s also the need for digital marketing to spur market outreach for these SMEs,” he said.

Lagos, Nov. 18, 2023: The Nigeria Association of Small and Medium Enterprises (NASME) in partnership with the MTN MoMo has introduced a mobile money platform for start-ups and Small and Medium Enterprises (SMEs) to grow their businesses.

The product was unveiled at the MTN MoMo and NASME Symposium and Exhibition, on Friday, in Lagos.

The National President, NASME, Dr Abdulrashid Yerima, said familiarising the NASME community with the MTN MoMo wallet and MTN products would play a significant role in supporting the growth and development of SMEs in Nigeria.

According to him, providing NASME members with the tools and resources they need to succeed, MTN have helped to create a more inclusive and prosperous economy for all Nigerians.

“As the President of the Nigeria Association of Small and Medium Enterprises, I am honoured to be part of this collaborative effort between MTN MoMo and NASME that symbolises a commitment to fostering growth, innovation, and connectivity within our vibrant small and medium-sized enterprise community.

“This initiative aligns with the one-billion-naira youth and women empowerment fund and the overarching vision of the Sustainable Development Goals (SDGs) for 2030.

“It also marks the commencement of a transformative experience designed to introduce the MTN MoMo Wallet and MTN products to NASME.

“It serves as a conduit for networking, expert-led workshops, and seminars aimed at equipping SMEs with the tools and knowledge necessary for sustainable growth,’’ he said.

Yerima was represented at the event by Mr Solomon Aderoju, the National Vice President, NASME.

The Chief Commercial Officer, MoMo, Elsa Muzzolini, who thanked NASME for the collaboration, said that MoMo was willing to engage them and address their specific challenges and requirements.

“We really want to listen about your needs and what you want MoMo and MTN to do to help you in your business on a daily basis.

“I want you to share with us what you want MoMo to do for you; my team will collate all your submissions and make sure that we integrate it because we believe in co-design and collaboration to serve the needs of our customer,’’ she said.

Dr Femi Egbesola, President, Association of Small Business Owners of Nigeria (ASBON), congratulated NASME and MoMo for the partnership and for identifying with the SMEs.

Egbesola, however, provided specific recommendations on how MTN MoMo could better support small and medium-sized enterprises.

This, he said, was a proactive approach for MoMo to identify and address the needs of SMEs, which is crucial for fostering their growth and success.

Egbesola said, “The first is that we would love to have the logo of our business membership organisation on your MoMo platform for the world to see that we are actually partnering with you and you are partnering with us.

“Next is that when you are dealing with SMEs, we want you to use us as your brand ambassadors.

“We wish that you introduce quite a number of different support services with your MoMo platform. Like having an online platforms where all SMEs can display their products and services free of charge that will give you a lot of feasibility and will also help you to have our data free of charge

“We will also appreciate it if you can have a mentorship platform on your platform that can assist us to have people who are credible, knowledgeable and experienced.

“That can afford the startups and those who are younger in business on how to do business right, among others.’’

Abuja, Nov. 6, 2023: An expert, Enobong Umoessien, has called for more deliberate action by government and relevant stakeholders toward promoting Small and Medium Enterprises (SMEs) to ensure growth of the country’s economy.

Umoessien, Head of Division Business and Enterprise Promotion, Private Sector Directorate, ECOWAS Commission, said  on Sunday in Abuja.

According to him, SMEs are the main bulk of businesses in any economy.

”They contribute close to 80 per cent of employments; more than 40 per cent to Gross Domestic Product (GDP) and they are the hub, and the nursery for big businesses.

”Countries and regions that promote SMEs are regions that will grow and mature.

”They are the ones that provide inputs to big business and they also provide a hub for the middle class.

”So, the vibrancy and the manipulation of SMEs is key to the sustenance and competitiveness of economies,” Umoessien said.

The expert said for SMEs to thrive, business climate regulations such as taxes needed to be considered and addressed.

He, however, expressed delight that the current Nigerian President, Bola Tinubu had graciously set a system in motion to reduce the taxes that were available for businesses.

He said: ”this is a massive action that will reduce the difficulties and challenges that SMEs and other businesses face.

”These are the kind of things that should happen to grow and encourage SMEs.

”We at the ECOWAS commission, we have inaugurated the ECOWAS SMEs charter that has among other things, provided specific structures for the support and promotion of SMEs.

”It ensures provision of funds, technical assistance, and help them to organise their businesses.

“We are on standby to support member states and the private sector to do business.”

On challenges, Umoessien said SMEs on the continent faced enormous challenges with energy being one of the major challenge.

He said SMEs were mostly located in off metropolitan environments in the rural areas, in villages where you do not have good roads or power supply.

He said poor communication was also one of the major challenges affecting small businesses on the continent.

”Today, the world is driven by digital technology, which is the bedrock to telecommunications.

“Now, without this kind of infrastructure, SMEs and business generally have difficulties internet.

”Connectivity in Nigeria is still low and penetration is still low too. A lot needs to be done to enable telecommunications infrastructure to go to all the zones, the rural areas.

”So that SME’s and businesses wherever they are located, can connect with the global community and do business online and the rest of them,” he said.

Umoessien highlighted some factors necessary for SMEs growth to include, energy availability, rural electrification, renewable energy use, roads construction, telecommunications, tax reductions for SMEs particularly certain class of businesses.

He said it was important that they should have moratorium and should be allowed to do business for certain years.

” It is important for government to engage big business in discussions on how they can support SMEs in their value chain. The taxes that big business pay can be negotiated down.

”And they can compensate for those taxes by embedding more SMEs in their value chain as well as create employment.

Abuja, Oct. 31, 2023: The National Association of Small and Medium Enterprises (NASME) and the United Nations Industrial Development Organisation (UNIDO) ITPO in Nigeria, have collaborated to boost small businesses in West Africa.

The organisations said this in a communiqué issued at the end of the 2023 West Africa Small and Medium Enterprises (SME) Exhibition they both organised in Abuja.

The two organisations said it was imperative to establish a collaborative platform that would effectively address the challenges faced by SMEs and propel its growth and sustainability in the region.

According to the communiqué the conference has helped to Increase visibility and market access for SMEs in West Africa.

“It strengthened partnerships and collaborations between SMEs, financial institutions, and government agencies and enhanced knowledge and skills among SMEs to thrive in a competitive market.

“It increased access to financing and investment opportunities for SMEs and advocacy for policy reforms that support SME growth and sustainability.

“There was also the adoption of the West Africa SME Exhibition as an annual event and signing of  Memorandum of Association for the establishment of a unified West African MSME Forum /Council ” it said.

According to the communiqué, the event spotlighted various themes such as policy dialogues, awards and recognition and industry panel discussions on challenges and opportunities specific to sectors.

It said the event also centred on women and youth empowerment, and hurdles faced by SMEs in accessing financial resources.

The communiqué said one of the highpoints of the exhibition was matchmaking and pitching sessions where selected SMEs pitched projects spanning renewable energy, AI, clean tech, and food processing.

It said their proposals garnered positive investor’s attention as Sterling Bank’s Ms Bolanle unveiled a zero-interest financial opportunity for SMEs.

“The top pitch won various rewards, including enrolment in the MSME 4.0 programme, financial assistance, enhanced market presence and visibility, networking avenues, recognition and empowerment and access to empowerment capital, ” it said.

The communiqué said during the event, the Director-General, Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) Mr George Odii, announced a N1billion grant to NASME for youth-driven ventures in Nigeria.

It said the empowerment initiative would involve 15 ECOWAS member states with an emphasis on MSME 4.0.

It said Dr Enobong Umoessien, ECOWAS PPO Business and Enterprise Promotion Private Sector, also inaugurated the ECOWAS Small Business Coalition Steering Committee on behalf of the ECOWAS commission, with Dr Abdulrashid Yerima of NASME as the chairman.

The event, which was a hub for networking, knowledge exchange, and policy discussions, had over 300 attendees from Nigeria and other West African member states.

The exhibitors were from both the Anglophone and Francophone regions of West Africa with key organisations such as MTN MOMO, Sterling Bank, DBN, and Police Microfinance Bank showcased their offerings tailored for SMEs.

Abuja, Sept. 26, 2023: President Bola Tinubu has restated his administration’s commitment to promoting ease of trade for Small and Medium Enterprises (SMEs) across Africa.

Tinubu gave the assurance during the Africa International Trade Exhibition (AITE) 2023’s Business, Trade, and Investment Summit on the sideline of the 78th edition of the United Nations General Assembly (UNGA).

Mr Tunde MacAlabi, the Chairman, Organising Committee for the Business, Trade and Investment Summit component of the exhibition programme, made this known in a statement on Monday.

The summit was organised by Mr MacAlabi; Prof. Tai Balofin, President of Nigerian Progressive Professionals and Ms Khuraira Musa, Chief Executive Officer of K-Pro Consulting of New York.

Represented by the Minister of Trade and Investment, Dr Doris Uzoka-Anite, Tinubu assured investors that the Federal Government would take the necessary steps to ensure the ease of trade in the country.

Earlier, Minister of Aviation and Aerospace Development, Festus Keyamo, urged both foreign and local investors to take advantage of Nigeria’s huge population, traffic, and thriving aviation market, to invest in the sector.

Mr Keyamo pointed out that world-class Maintenance, Repair and Overhaul (MRO) facilities would be a good area for investors to consider first.

According to him, there are not many MRO facilities in West Africa, a situation that makes domestic airline operators ferry their aircraft, only to queue overseas for two months or more for their aircraft maintenance.

Also, Ms Musa, who is the author of The Audacity of an African Girl and President of the Arewa Development Support Initiative (ADSI), said the purpose of the event was to woo investors to invest in Nigeria.

” We want to have industries in Nigeria to process and manufacture our raw materials in the country to give job opportunities to our youths and women.

” To continue allowing our raw materials to be exported and paid next to nothing for it will continue to keep our people in poverty.

” We want Nigeria to change the way they have been doing business. We are confident that the outcomes of this gathering will have a lasting impact on the economic landscape, not only in Nigeria but also across the globe.”

In attendance were the FCT Minister of State, Mariya Mahmud, Sen. Ireti Kingibe, wife of Osun governor Titiola Adeleke, the Nigerian High Commissioner to Canada, Amb. Adeyinka Asekun, among others.