In a bid to create a business friendly environment for Micro, Small and Medium Enterprises (MSMEs), the National Agency for Food and Drug Administration Control (NAFDAC) has reduced the cost of registering businesses for locally manufactured products in Nigeria.
In a statement signed by the Acting Director General of NAFDAC, Mr Ademola A. Mogbojuri, stated that the reduction is in line with Federal Government’s directive to the Agency, to reduce difficulties of doing business by MSMEs in the Country.
Mogbojuri mentioned that the action was to further boost the economy and create employment in Nigeria, adding that the Agency needs to add value to the economy, aside their main objective of regulating products.
He noted that the MSMEs had contributed about 49% to Nigeria’s nominal Gross Domestic Products, emphasizing that challenges facing the sector must be addressed promptly, in order to create jobs for the youths.
In a related development, the Development Bank of Nigeria (DBN), has called for sustained support and improved access for MSMEs.
Receiving Queen Maxima of the Netherlands and United Nations Secretary General’s Special Advocate for Inclusive Finance for Development, Chairman of the Bank, Shehu Yahaya said there are over 37 million MSMEs in the Country, with less than five percent having access to credit facilities.
“The employment need in Nigeria will be 30 million – 40 million by 2030 (mostly to be provided by the MSMEs) and currently, 50% of Nigeria’s GDP is attributed to the SMEs and this is expected to grow to 70% in 2050”.
He noted that the DBN had commenced lending operations with the provision of over N5bn to three national microfinance banks for onward lending to 20,000 MSMEs across every sector of the economy.
In April 2017, the Vice President, Prof Yemi Osinbajo, inaugurated a 22-member council for Nigeria’s MSMEs.
Micro, Small and Medium Enterprise Development Fund (MSMEDF)
The Central Bank of Nigeria launched the MSME Development Fund, in August 2013, with a share capital of N220m, in recognition of the contributions of MSME to the economy of Nigeria.
The objective of MSMEDF is to enhance access by MSMEs to financial services, increase productivity and outputs of micro enterprises, increase employment and create wealth.
Lagos State Employment Trust Fund (LSETF)
LSETF is an initiative of the Lagos State Government to invest N25bn, over four years to empower citizens of Lagos State engaged in Micro, Small and Medium Enterprises (MSMEs), as well as boost job creation in the State by granting loans at five percent per annum.
In April 2017, Lagos State Employment Trust Fund approved N1.7bn loan to 1,400 beneficiaries, who were at different stages of fulfilling requirements for getting the loan.
In November, the body also approved N4.9bn for distribution to over 6,500 small business owners, under the MSME loan programme.
Micro, Small and Medium-sized Enterprise Day
The United Nations General Assembly recognised the need to improve small business access to microfinance and credit facilities, designating June 27 as MSME day.
The resolution was introduced by the delegation of Argentina, co-sponsored by 54 member States and adopted without a vote by the 193-member General Assembly on 6 April 2017.
The goal is to encourage member states to facilitate observance of the day by increasing awareness and actions to support small business.
The Micro, Small and Medium Enterprise are responsible for significant employment and income generation opportunities across the World and have been identified as a major driver of poverty alleviation and development.
