N617.3 Billion Financing Gap For MSMEs Exist Annually – CISLAC
The Executive Director of Civil Society Legislative Advocacy Centre (CISLAC) Auwal Ibrahim Musa, has stated that a whooping ₦617.3 billion funding gap has prevented the country ‘s Micro Small and Medium Enterprises (MSMEs) from realising its full potential .
Musa spoke at the opening ceremony of a two day Stakeholders capacity building and consultation workshop on fiscal support opportunities/processes for mutual economic growth of SMEs and private corporations on Tuesday in Lagos, where said this is in addition to other challenges.
Musa who was represented by the Program Manager, CISLAC, Chinedu Bassey cited a 2020 MSME survey by PwC which also highlighted multiple taxation and regulatory challenges.
In Nigeria, MSMEs account for 96.7 per cent of businesses, 87.9 per cent of employment, and 49.7 per cent of national GDP and thus require attention by government.
SMEs in country total about 17.4 million and account for about 50 per cent of industrial jobs and nearly 90 per cent of activities in the manufacturing sector, in terms of number of enterprises.
He therefore urged for civic advocacy to improve access to finance for small business growth/expansion, and also help to build capacity of SMEs on relevant statutory requirements, legal and policy frameworks.
“Financing institutions, alternative financing instruments and resources needed to secure funding; and strengthen platforms for SME/government interface for fiscal support and mutual growth opportunities.” He noted.
In her goodwill message, Mrs Gbemi Odunta, National Deputy President, Southern Region, NASME, stated that the program will afford stakeholders proffer solution to some of the challenges bedevilling SMEs.
In her own word,”Don’t undermine the power of SMEs, it is the engine that would propel Nigeria into the expected economic growth and development.”
Also speaking, the Mrs. Olakitan Wellington, National Secretary, Association of Nigerian Women Business Network (ANWBA) noted that there is a lot of financial support provided by the government for MSMEs, but could not be accessed due to difficulties in proper documentation.
Olakitan expressed that the workshop will go a long way in exposing SMEs on the right ways to access SMEs support funds for both the government and international organizations.
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