Business
Don Tasks FG On Power Supply
A senior lecturer, Department of Economics, University of Lagos, Dr Tunde Adeoye, wants the Federal Government to focus its attention on the provision of adequate power supply in 2013.
Adeoye told newsmen in Lagos on Saturday that an improvement in power supply would engender the creation of more job opportunities for unemployed youths across the country.
He stressed that inadequate power supply was one of the major challenges confronting the real sector, adding that the government should be more proactive in efforts to revamp the ailing power sector.
He reiterated that stable power supply was vital to the manufacturing sector, adding: “ Lack of adequate power supply constitutes a major impediment to growth in the real sector.’’
Adeoye noted that many companies in the country had closed down due to the epileptic power supply, adding that some of them had relocated to some neighbouring African countries where there was stable electricity.
The don stressed that government’s programmes such as the provision of bailout funds and waivers for the real sector would continue to be counterproductive if the power sector was not overhauled.
Adeoye said that the seasonal downsizing of staff by companies could be attributed to the high cost of running electricity generating sets, adding that the development had also compounded the unemployment situation in the country.
He noted that the increase in kidnap cases and armed robbery attacks across the country was as a result of youth unemployment.
He, nonetheless, advised the government to be more aggressive in efforts to improve the power supply situation in Nigeria so as to attract foreign investors into the country.
“No investor will be willing to invest his money in a country where the cost of doing business is high,’’ he said.
Adeoye said that with the influx of new foreign investors into the country, more job opportunities would be created, while the crime rate would be drastically reduced. He also said that if new investments cropped up, the country’s Gross Domestic Product (GDP) would increase, while the pressures on the national economy would be reduced.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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