‘Access to finance remain major challenge to SMES’

DESPITE the role Micro, Small and Medium Enterprises (MSMES) play in economic development; they are still not given the adequate attention they deserve to change the economic fortune of Nigeria.

This was the submission by Young CEO Initiative and other young entrepreneurs at a press briefing in Lagos.

The Founder, Young CEO Initiative, Aigbe Omoregie, explained that the role of MSMES in the economic development of Nigeria cannot be over emphasised, adding that they play a significant role in the development of a nation ranging from contribution to the nation’s Gross Domestic Product (GDP), employment creation, export, increased value addition and technology advancement.

According to him, MSMES contribute 54 per cent to Nigeria’s GDP and 7.27 per cent to export as at 2013, pointing out Nigeria Bureau of Statistics as at 2014 recorded the total number of persons employed by the sector was 59 million which represents 84.02 per cent of the Nigeria total labour force.

He acknowledged the efforts of the federal government in job creation, implementing programs and policies targeted towards the youths to encourage entrepreneurship.

“We therefore want to appeal to the government with a sense of urgency to come to our aid as we are having real problems with accessing finance and this has resulted to the closure of many of our various companies and organizations. This would only defeat our efforts in reducing the level of unemployment in the country.

“We find it difficult accessing credit facilities from commercial banks which leave us at the mercy of smaller financial homes who give us facilities at a very ridiculous interest rate that eventually eliminate the purpose of growth.