SMEs: N2 billion non- repaid loans affects other interested entrepreneurs
Over N2billion worth of loans given to Small and Medium Enterprises SMEs are yet to be repaid by beneficiaries in the South West zone of the country.
The non- repayment by some beneficiaries is affecting the spread of the gesture to others interested.
This was revealed at a stakeholders consultative forum on ‘Ease of Doing Business’ in Ibadan organised by Development Agenda for Western Nigeria (DAWN Commission) in partnership with Department for International Development (DFID).
At the event,South West Governors were represented by A.R Alonge (Ondo), Folakemi Akinleye (Oyo), Musari Olukayode (Ogun), Gabriel Abimbola Oso (Osun),
Others at the forum came from the private sector, Civil Society Organisations, NAFDAC, SMEDAN, CAC, Government agencies, and Security agencies.
The southwest governments said they are making all efforts to ensure that small and medium scale enterprises thrive in the zone through provision of soft loans.
While noting that small and medium businesses drive development globally, the stakeholders said the laws on doing businesses in the country and southwest are cumbersome and burdensome on SMEs making it difficult for them to thrive.
They also wanted government to assist small and medium business enterprises in accessing loans from banks noting that unkind Bank policies kill business initiatives and undermine development.
The Southwest governments however vowed to continue to improve the investment climate to assist investors in driving development and industrialisation in the zone.
This was sequel to a call by stakeholders urging the governors in south-west Nigeria review policies around small and medium business enterprises in order to drive industrialisation and development in the zone.
Speaking with journalists, Staff Analyst at DAWN commission, Adetayo Adeleke-Adedoyin noted that stakeholders have roles to play in identifying challenges and proffering solutions to the challenges in other to drive development in the zone.
He informed that Nigeria was ranked 169 out of 190 countries in 2016 on ease of doing business which forced the federal government to set up presidential committee to unravel challenges of doing business in Nigeria.
He noted that if the southwest and southeast get it right on ease of doing business, development in Nigeria will be fast-tracked and other zones will enjoy the spiral effects of this.
While contributing, Vincent Attah of Development Initiative Network noted that existing policies and framework for doing business did not factor the interests of small and medium enterprises adding that the lack of this kills business dreams and undermine development.
“These laws did not incorporate the interests of small and medium enterprises which is making the small and medium enterprises to find it difficult to thrive. It is only for comprised the private sectors, civil society organisations, government agencies and the security agencies identified policies”
Also speaking at the forum, Temitope Richard-Banji of LEAP Africa noted that SMEs face stringent conditions arising from government policies and lack of financial literacy education on the part of small business owners.
He called for flexible policies that will recognise business interests on case-by-case basis to encourage development of business initiatives and drive development in the zone.
“It is really challenging doing business in Nigeria and the southwest Nigeria. Government policy is not friendly. Everybody is talking about agriculture but the farmers do not have access to the funds. The banks ask for collateral. How will somebody who is just trying to start business meet the requirements that favour only established companies? Also NAFDAC registration requirements for start-up businesses in Nigeria need to be reviewed. If the policies are reviewed or treated on a case-by-case basis, it will ease doing business in southwest Nigeria. There is need for financial literacy education. People are doing business because they have money but they lack business plan. Human capital development is important for businesses that want to scale up.”
Akinremi Feyisipo