Supporting local entrepreneurs
It beats one’s imagination that our present system has consistently failed to identify, spontaneously intervene, and responsively render desired adequate financial support to the genuine entrepreneurs who have shown enough and convincing evidence and willingness to contribute towards the nation’s industrial development and economic growth. Past and present governments have come up with a lot of programmes and economic policies (both proscribed and existing) for poverty alleviation, economic empowerment and support to small businesses. These initiatives include the Industrial Training Fund (ITF), National Directorate of Employment (NDE), National Poverty Eradication Programme (NAPEP), Funds for Small-Scale Industries (FUSSI), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), National Economic Reconstruction Fund (NERFUND), YouWIN (a youth enterprise initiative currently packaged under the minister of finance), and of course the current partnership arrangements between some state governments and the Bank of Industry (BOI), among many others. But, unfortunately, in all of this, numerous genuine local entrepreneurs are left out to suffer and languish without actualising their dream projects due to lack of financial help from the appropriate quarters.
In most economies of the world where financial assistance is extended to entrepreneurs to impact positively on the growth of their national economies, those entrepreneurs bear eloquent testimonies to how their governments/banks came to their rescue. Why is it not so in our own economy? Building an equitable society through provision of public social welfare packages on health-care, education and so on; where families survive by offer of affordable access juiced with protection of basic human rights – mainly carried out by the governments through programmes and projects on social investments and public expenditure – is good in itself. But more to it is that such direct budgeted spending could as well be better approached indirectly and achieved by prompt and adequate intervention funds/financial support (loans) by the Nigerian government for essential, laudable and viable projects (that might have even been over 75 percent completed, self-financed) in the real sector. This will greatly benefit our numerous entrepreneurs who will in the long run create fresh job opportunities for the labour market. This fact has been proven by the SMEs in most of the developed economies, but Nigeria’s insensitive approach appears a recalcitrant case. The nation is losing, economically!
The government indeed faces mounting and increasing unemployment embarrassment, yet the affected, vulnerable investors that are caught in this web of financial quagmire (after exhausting their hard-earned fortunes in such projects) are not helped out of the miry trap. Rather, they gradually and slowly rust away and die off with their talents, out of frustration because no help whatsoever comes in actualising their vision that would have made their operations stand firm. It is indeed the Nigerian government that loses in the long run. In the present globalised economy, these affected indigenous investors are not encouraged to improve technologically in terms of standards with modern industrial machinery that could comfortably position them to compete favourably with their contemporaries on imports. This is especially observed on food imports that are even cheaper and better marketed in our local market. I personally do not want to talk about the Nigerian banks in this respect, but I wonder if they observe what obtains in other economies and the kind of financial support given for industrial development. It is hard too for this group of SMEs to try the so-called NERFUND loans or the likes and succeed. It is all in theory whenever the Ministry of Trade and Investments gives reports on how much Nigerian investors have benefitted from such loans, forgetting that the actual prospective beneficiaries of such facility are not reached with such loans; yet they are the potential economic engine block for growth in the economy. One starts wondering, who are the actual beneficiaries? The Manufacturers Association of Nigeria (MAN) is here in the country to bear witness, if it is not a statement of fact!
As this material is being penned down, there is a classical case of a food industry located somewhere in Anambra State which is currently grappling with logistics to start up. This is a multi-million naira (green project) manufacturing outfit with about 17 proposed brands of products that are already registered with the National Agency for Food and Drugs Administration and Control (NAFDAC). The managing director called me from Far East Asia lamenting how little delay in taking off is devastating and now about destabilising his focus because his bankers who gave some level of financial assistance no longer want to continue to a conclusive end; rather, they are threatening to sell off his assets. He is now running from pillar to post shopping for foreign assistance among his suppliers, for credit supply of raw materials, and is now touring about five countries just for this purpose. Is this how our real sector will support viable small manufacturers in the private sector that will add value for growth in our economy? This is indeed very disheartening!
There is still another case of a beverage manufacturing outfit there in Anambra State, which has successfully completed expansion (in terms of size and Hi-Tech). It was self-financed for nearly six years when it closed shop to embark on such measures, another three years after no external assistance could be offered, to raise working capital to start production, with all the facilities on ground, including stand-by power generating set lying fallow and the entire premises now overgrown with weeds. This is a project that will comfortably employ at least 50 workers as permanent staff once it starts production. This is a true story and indeed very painful.
Nwachukwu writes from Onitsha,
Anambra State.
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