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By Anthony Maliki
Operators of Micro, Small and Medium Enterprises (MSMEs) in Nigeria have observed that poor access to finance among others is one of many challenges confronting their businesses.
This was contained in a communique at the end of a one-day 1st Abuja SME Conference and Exhibition organised by Abuja Chamber of Commerce and Industry (ACCI).
The event which has as theme “Solution Strategies for resolving tax, regulatory, packaging and logistics challenges facing SMEs in Nigeria,” took place on Monday, August 16, 2021 with over 125 participants from the public and organised private sectors.
Other challenges enumerated in the communique include 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, multiple taxations, logistics challenge and unfriendly banking regulations like high interest rates, which most often discourages MSMEs from seeking loan facilities from commercial banks.
They also noted there is no enabling environment for MSMEs bearing in mind that Ease of Doing Business is not about business registration with the Corporate Affairs Commission (CAC), lack of incentives and palliative to support MSMEs growth, policy inconsistency from regulatory agencies disincentivises MSMEs, outdated tax regime and heavy infrastructural burden on MSMEs is hindering their growth among others.
In the light of the challenges, participants outlined thirty recommendations to assist SME operators as a way forward.
These include deliberate import-substitution policies as well as protectionism for local industries, as 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 and 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.
Others are a 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 and regular capacity-building among MSMEs.
The recommendations also include 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, regulatory authorities must develop friendly criteria for MSMEs, introduce tax holidays, and it should spread through the different categories of MSMEs, facilitate easy access to loan for MSMEs and flexible financing support, establish MSMEs Bank in Nigeria and domesticate all treaties, agreements and protocols by the government that supports MSMEs growth.
Other notable speakers at the conference include; Senator Francis Fadahunsi – Chairman, Senate Committee on Trade and Investment
Prof Adesoji Adesugba – Managing Director, Nigeria Export Processing Zone Authority (NEPZA), Dr Dikko Umaru Radda – Director-General/Chief Executive Officer, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), President, Federation of West African Chamber of Commerce and Industry (FEWACCI) represented by the Regional Treasurer, Otunba Dele Oye, President, National Association of Chamber of Commerce and Industry, Mines and Agriculture (NACCIMA) represented by the First Deputy President, Otunba Dele Oye, CEO/Executive Director, Nigerian Export Promotion Council (NEPC) represented by the Director of Export, Mrs Getrude Ukanam, Chairman, Young CEOs, Fife Banks while Dr. Franklin Akinyosoye moderated the plenary session.
Panelist are Hon. Bashir Maidugu, Special Adviser to the Governor of Borno State, Dr Chijioke Ekechukwu, Economist, Former DG ACCI, Finance and Investment Expert, Prof Munirat Yusuf-Habeeb, Prof of Business Administration, University of Abuja, Mr. Ebenezar Igure, Technical Assistant to ACCI President, Enterprise risk management expert and Prof Gylych Jelilov, Dean Faculty of Social Sciences, Nile University Abuja.
