Experts seek enabling environment for SMEs to thrive in Nigeria

In commemoration of this year’s democracy day, Mr Oni Oluwaseye of the University Media Centre University of Ibadan, hosted a panel of experts via a webinar to examine the impact of the banking sector on the implementation of governmental polices on the growth of Small and Medium Scale Enterprises (SMEs) in Nigeria.

Oni reiterated the banking sectors significant contributions to the implementation of governmental policies on SMEs growth.

The four-man panel, anchored by the Chief Editor (Production), University of Ibadan Media Centre, reviewed the role of the banking sector in the achievement of governmental initiatives for SMEs in Nigeria.

The panellists include Mrs Cynthia Onyenze, regional Head; IT Technical Support and Enterprise User Support, Access Bank Plc; Mr Akeem Amusa, a Chartered Economist, Professional Banker, Marketer and Agriculturist; Mrs Abidemi Olukole, an Economist and Chartered Professional Accountant and Mr Michael Onoja, a software engineer and regional Head, IT, Access Bank Plc.

Oni said each member of the panel was carefully selected based on their impart on SMEs development in Nigeria.

Akeem Amusa said in all economies of the world, including Nigeria, SMEs have been recognised as essential driving force for economic growth.

He said, “There is documented evidence to show that SMEs in Nigeria have contributed to employment, alleviate poverty and increase productivity level in the nation.

“There has been several governmental policies and initiatives targeted to the development of SMEs in Nigeria, one of such is the Anchor Borrowers Programme (ABP) where I monitored and supervised over 3,000 smallholder farmers in Kaduna, Zamfara and Ogun States to produce rice, maize, and soya beans between 2016 to 2020.

“I can affirm that in recognition of the role of SMEs in the economic growth process of Nigeria, government has taken concerted efforts to foster the growth of SMEs and also develop entrepreneurship and that the banking sector has been a major player in the implementation and monitoring of governmental policies and initiatives in this regard.”
 
On her part, Mrs Abidemi Olukole explained the three major sub-groups of SMEs: Medium Scale Enterprise (MSE), Small Scale Enterprise (SSE) and Micro Enterprises (ME).

“My contribution of major significance in the field has been in human capacity building and capital development for SMEs in rural/semi urban areas of Nigeria over the years.

“The banking sector not only contributed to the development of influential financial apps but also in the training of SMEs owners on the use and application of financial apps.

“My intercontinental experience in navigating financial accounting rules have continued to be deployed in the development of SMEs in Nigeria. I am aware of the steps taken by the Federal Government over the years, including monetary, fiscal and industrial policy measures to promote the development of Small and Medium Scale Enterprises (SMEs),” she said.
 
On the role of the banking sector, Michael Onoja, said Nigerian banks through their IT staff have continued to promote the operations of SMEs through the introduction of several finance apps that have made banking operations easier, faster and safer for SMEs

Onoja explained, “The impact of the banking sector on SMEs have resulted in an increased manufacturing production, it has increased employment generation and efficiency in the sector.

“Similarly, modern SMEs operations have been characterised by high technological innovations brought about by advancement in IT leading to the development of managerial and entrepreneurial talents as well as improvement in technical skills.

“In every economy, one of the biggest challenges SMEs face is access to finance. Advancement in IT has continue to break the barrier to accessing funds by SMEs. Federal government has put in place great initiatives in partnership with financial institutions to ease this challenge.

The Central Bank of Nigeria (CBN), Intervention Funds are great initiatives to assist SMEs. Through this scheme, SMEs can access financing at way lower interest rates than what’s typically available from commercial banks.

“Specifically, there is the SME Credit Guarantee Scheme which offer collateral-free loans and guaranteeing up to 80% of the credit required to run approved SMEs.”
 
Furthermore, Mrs Cynthia Onyenze explained the resolution of customer’s financial transactional issues, saying, “I can boldly affirm that the provision of prompt and accurate support to users, employing a high degree of customer-service skill and technical expertise while ensuring customer satisfaction are key to the growth of SMEs.

“The introduction of Point of Sale (POS) in SMES operation has advanced commercial activities and reduced robbery to a greater extent in the business arena.

“I am aware that the preference for cash has continued to affect SMEs operations in certain quarters because there are empirical evidence to show that many merchants still prefer cash transactions over electronic payments while frequent power outages hinder businesses relying on POS.

“Experience with customers have shown that computer illiteracy still undermines the growth of several SMEs. Where illiteracy is not the problem, access to ICT facilities has hindered progress in no small measures.

“I have always recommended and do recommend that government’s policies and initiatives on the growth of SMEs be complemented with the provision of basic ICT facilities followed by avenues for increased ICT training and re-training as these will assist SMEs to embrace information and communication technology in terms of resources, networks, and consumer skills.

“The challenges faced by majority of SMEs in Nigeria notwithstanding, the contributions of the banking sector towards the growth of SMEs remain influential in the implementation of governmental policies and initiatives for SMEs development in Nigeria.”

Participants at the event took turns to ask questions, with a joint call for the government to provide enabling environment for SMEs to thrive in modern day Nigeria including the provision of security of Nigerians, a major threat to SMEs growth in addition to amenities like stable power, stability and continuity in governmental policies to build confidence in SMEs holders.

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