Over N33 billion meant for zonal intervention projects and programmes in the Micro, Small and Medium Size Enterprises (MSME) sub-sector was neither accounted for nor monitored by the Small and Medium Scale Enterprises Development Agency (SMEDAN), the auditor general of the federation’s report has revealed.
The report, which spanned from 2014 to 2016, indicted the agency of not just failing to monitor the implementation of such projects but willfully choosing not to implement the necessary frameworks to carry out proper evaluation of projects, which led to failure to determine if the intervention programmes were actually helpful to the survival of small businesses in the country.
“A total of N33,820,366,930.00 was released to SMEDAN to implement zonal intervention/projects for the years under review for the development of MSME sub-sector. SMEDAN could not produce evaluation report(s) for the years 2014 and 2016 to show how the sum was expended and how it impacted on MSMEs.
“The report of the agency produced in 2015 was silent on the impact of constituency projects on MSMEs. The absence of the evaluation reports made it difficult to determine whether government objectives of addressing equipment needs of MSMEs were met through constituency projects”, the report stated.
Also, it indicted the agency of failing in its statutory duty of providing for, and facilitating the promotion and development of MSME sub-sector in the country, as well as creating links and access for small scale business to benefit from programmes created to facilitate the growth of the sub-sector. Furthermore, the agency could not discharge its responsibility of linking MSMEs to appropriate technology, technical skills and management that will enhance their growth.
The agency did not provide sufficient linkage for MSMEs to access over N220 billion made available by government to develop the MSMEs. Bank of Industry, according to the report, revealed that the inability of small businesses to access its loan facilities was because of poor packaging of loan applications by SMEDAN.
Beyond these, the agency did not create enough awareness among the small business owners about appropriate finance windows available for MSMEs in Nigeria and the other resources which could engender business growth. This failure, the report says, has left numerous government funds for the sub-sectors undersubscribed to.
“This inadequate sensitisation of the numerous financing sources has resulted in low patronage by MSMEs of the numerous financing products that are available in government institutions, NGOS and international agencies.”
SMEDAN keeps mum
When Nigerian Tribune contacted SMEDAN, the Public Relations Officer of the agency, Ibrahim Abubakar, said he was not aware of the report. Hence, he directed enquiries to Mr Tsanni Abdulkadir, who, according to him, works at the audit department and is in the right position to respond. When contacted, Mr Abdulkadir said he was sick and requested for time to be fit to respond. Five days later, Nigerian Tribune contacted him again, but, this time, he claimed he is not in the position to respond to any enquiries.
Failed mandate
SMEDAN was established in 2003 as an agency under the federal ministry of industry, trade and investment. It was, as intended, established to be the apex institution responsible for all matters relating to starting, supporting and growing MSMEs in Nigeria. More specifically, the agency should provide linkages to finance and technological sources to help small businesses, across the country.
These it confirmed on its websites where it stated that it is stimulating, monitoring and coordinating the development of the MSMEs sub-sector; initiating and articulating policy ideas for small and medium enterprises growth and development; promoting and facilitating development programmes, instruments and support services to accelerate the development and modernization of MSME operations.
and then