MSMES crucial to job creation and growing workforce, says Peugeot MD
The Managing Director/ CEO, Peugeot Automobile Nigeria, Ibrahim Boyi has called for stakeholders’ support for Micro, Small and Medium Scale Enterprises (MSMES), describing the sector as crucial to Nigeria’s job creation drive, having the needed capacity to absorb the nation’s growing workforce.
Boyi made the call while speaking as the keynote speaker at the recent Development Bank of Nigeria (DBN) MSMES summit held in Maiduguri, Borno State. He also noted that the current supply of about $3.7trillion is low compared to the $8.9 trillion potential demand for MSMES financing.
According to Boyi, the MSMES sector of the Nigerian economy has made a total employment contribution of over 60 million, arguing that if given the needed support by way of funding and enabling environment, MSMES will contribute more to grow Nigeria economy.
“There are five major economic sectors that have thrived within the MSMES sector in Nigeria; these are wholesale/retail trade, agriculture, other services, manufacturing, accommodation and food services.
These sectors have made a total employment contribution of about 60 million persons, while 10 million persons from these statistics do not have western education,” Boyi said, noting that quick implementation of innovative ideas set MSMES apart.
He however, enjoined participants at the summit and MSMES in general to formalise the operations of their various businesses as this will help the sector to effectively position to receive necessary support to develop and scale up their businesses.
Affirming the bank’s continued support to MSMES, the Managing Director, Development Bank of Nigeria (DBN), Tony Okpanachi noted that the bank has disbursed over 100 billion naira this year to over 95,000 MSMES across various sectors of the economy.
According to Okpanachi, DBN is committed to helping small and medium scale business owners in the state and region grow their businesses. “The bank is poised to enhance the access to finance for MSMES in the commercial city of Maiduguri, Borno State and the North-east region of the country and thus rejuvenated to its blooming commercial city status after the insurgency experienced in the last 10 years.”
Okpanachi opined that the perceived absence of a bankable business plan and structure is responsible for MSMES classification as high risk by banks, resulting in their unwillingness to finance the sector. “MSME businesses owners need to get their businesses structured with bankable business plans,” he concludes.
Panel discussants at the summit include Romoke Adebo, founder/ CEO, Epicentre Global Events Limited; Rilwan Hassan, executive secretary, Kaduna State scholarships and loans board; Fantis Mohammed, founder, Santis foods and beverage limited and Ibrahim Balami, MD/ CEO, IBBA 36 Global Concept.