By Chimezie Godfrey
Stakeholders have urged the government to establish deliberate import-substitution policies as well as protectionism for local industries in the country.
The stakeholders made the demand in a comminique issued at end of the 1st Abuja SME Conference and Exhibition 2021.
According to the Communique, challenges faced by micro, small and medium scale businesses in Nigeria include poor access to finance, lack of access to local, regional and global markets, inadequate infrastructure, poor adaptation to modern technology, inadequate human capital, lack of access to quality packaging, and multiple taxations.
Others include logistics challenge, unfriendly banking regulations like high interest rates, which most often discourages MSMEs from seeking loan facilities from commercial banks, and lack of no enabling environment for MSMEs bearing in mind that Ease of Doing Business is not about business registration with the Corporate Affairs Commission (CAC), among many others.
The Communique therefore recommend that access to finance should be seamless, with loans made available to MSMEs at a single digit interest rate, among others.
It stated,”In the light of the challenges identified by participants, the following recommendations were reached at the conference; deliberate import-substitution policies as well as protectionism for our local industries, especially MSMEs should be put in place by the government.
“MSMEs are drivers of the economy and makeup 90% of economic activities. Government must pay attention and support their growth as obtainable in India, China and emerging markets.
“Access to finance should be seamless, with loans made available to MSMEs at a single digit interest rate.
“Harmonisation of business laws within the Economic Community of West African States (ECOWAS) region in order to bring conformity into the different systems of business regulation in the region in order to make the laws uniform, simple, complete, and common.
“Presidential Executive Order to harmonise taxation for MSMEs. Provide an enabling environment for businesses to thrive. Improve Nigeria’s ranking on World Bank Ease of Doing Business.
“Inculcate among MSMEs the need for fiscal responsibility to support a better business environment.
“Streamline taxes across the national and sub-national levels. Regular capacity building among MSMEs.Implementation of the relevant section of the Finance Act 2020.
“Specific technical training on standardisation, packaging and logistics.
“Adherence to international standards by MSMEs. Encourage knowledge sharing, and peer review with MSMEs will help their growth.”
Moreso, the Communique also recommended regulatory authorities must develop friendly criteria for MSMEs, Introduce tax holidays, and it should spread through the different categories of MSMEs.
It urged the government to facilitate easy access to loan for MSMEs and flexible financing support, and establish MSMEs Bank in Nigeria19.
It stressed that Nigeria must domesticate all treaties, agreements and protocols by the government that supports MSMEs growth.
It also urged the government to establish rural banking that supports MSMEs in rural areas grow their business.
Nigeria should leverage the huge potentials in blockchain technology, artificial intelligence and the Internet of Things.
The Communique further called on the Nigerian Government to address insecurity in the country through multiple stakeholder engagement,.
It added,” MSMEs should use data and research to drive their business growth.
“Government should improve the rail way system for goods movement across the country.
“Government should support infrastructural development through public-private-partnership.
“Innovations from MSMEs should be incentivised by the government and stakeholders.
“Provide palliative to enable recovery, sustenance and improvement of MSMEs after the lockdown.
“Stakeholders should carry out awareness creation and sensitisation on multiple taxations.
“There should be proper monitoring and implementation of MSMEs survival fund, guaranteed offtake scheme, export expansion grant, among others30. Alternative sources of loan by MSMEs from microfinance banks, cooperatives should be encouraged.”
The first Abuja SME Conference and Exhibition 2021 ended by 4:00 PM with the closing remarks delivered by Mr Chidi Onwumere, the managing partner, Brandmarks Communication Ltd.Contact: policycentre@accinigeria.com
