Formulate growth policies, build infrastructure to support SMEs, LCCI tells FG

The Lagos Chamber of Commerce and Industry (LCCI) says the Federal Government must formulate growth-driven policies and build infrastructure that will enable the micro, small and medium businesses (MSMEs) to thrive.

Jon Tudy Kachikwu, chairman, SME Group of the LCCI, gave the advice at the group’s annual symposium held last Wednesday in Lagos.

“We all know that the country is going through some economic challenges, which chiefly are caused by the fall in oil revenue and the attendant somersault of the naira, among other factors. However, improving SMEs as significant growth drivers of growth, jobs and economic prosperity at a time such as this, is very important,” Kachikwu, who is also the CEO of Jon Tudy Interbiz, said.

“I must not fail to say that the Nigerian SMEs have shown resilience and stamina in absorbing all kinds of economic shocks. These shocks continue to have serious effect on SMEs’ cash-flow and liquidity, forcing most into bankruptcy and thus contributing to the record level unemployment in the country,” Kachikwu said.

“We commend the transformation initiative of the government towards the diversification of the economy. Nevertheless, it is our hope that government at all tiers will continue to accord highest priority to the formulation of growth-driven policies and provision of infrastructure that will empower SMEs as catalyst for economic development in the country,” he said.

Also speaking, Nike Akande, president, LCCI, who was represented by Babatude Ruwase, deputy president of the chamber, said the theme, ‘Repositioning MSME as Non-Oil Export Solution to the Plunge in Petro-Dollar’, was germane considering the dwindling fortunes of most businesses owing to downturn in the economy.

“SMEs in Nigeria are constantly faced with myriad of problems which inhibit their growth and performance. In spite of the presumed support by the Nigerian government and several development partners by way of financial and capacity building interventions, there is still an urgent need to reposition the SMEs’ contribution to Nigeria’s non-oil exports in line with the diversification of this administration,” Akande said.

“With the current harsh business environment which is underscored by the World Bank’s 2016 Ease of Doing Business ranking of Nigeria at 169 out of 189 countries, there is a clear need for an integrated policy to support the SMEs to thrive under these conditions. It is apparent that the government needs to put more focus and efforts into mitigating the investment climate challenges,” she said.

She further said that it was important for SMEs to scale up their business management practices for enhanced efficiency and effectiveness.

Bob Ezumah, export manager, U.S. Agency for International Development (USAID), said Nigerian SMEs should begin to export more to earn foreign exchange and take the country out of recession.

Ezumah, said all they needed to do was to ensure their products were exportable by embracing good packaging, promotion and pricing.

ODINAKA ANUDU