Editorial
Strengthening COOPs And MSMEs
Realising the essence of Micro, Small and Medium Enterprises (MSMEs) to local, national, regional and global economic development, the United Nations specially proclaimed June 27 annually as the International Day for Micro, Small and Medium Scale Enterprises to raise public awareness and sensitise the global community on the need to encourage and sufficiently fund MSMEs to achieve Sustainable Development Goals (SDGs).
Still harping on the roles and capacity of MSMEs as well as Co-operative Societies, the UN similarly declared July 6 yearly as the International Day of Cooperatives in recognition of COOPs’ contributions to societal development at various strata of governance. UN’s General Assembly on December 16, 1992, unanimously passed a resolution declaring the aforementioned date (July 6), as the centenary commemoration of the establishment of the International Cooperatives Alliance in 1995. It, indeed, coincided with the 25th United Nations Day of Cooperatives.
With the theme: “Big Money For Small Business Financing For SDGs”, the UN tasks government at all levels and stakeholders, especially the Organised Private Sector (OPS), to muster sufficient willpower and finance MSMEs and COOPs as they provide employment for over 279 million people representing 10 percent of world’s total working population.
According to Ariel Guarco, President of the International Alliance of Cooperatives (ICA),” COOPs help to preserve employment and provide work in all sectors of the economy, which enhances living standard of communities and societies”. Well said Guarco!
No doubt, MSMEs and COOPs, indeed, improve the socio-economic empowerment and inclusive sustainable growth, as these enterprises are usually people-centred with less tendencies for corruption as evidenced in public or governmental organs, particularly in developing economies such as Nigeria and other African countries where mismanagement and corruption hold sway.
Statistics from the National Bureau of Statistics and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) indicate that MSMEs operators in the country grew from 39 million in 2013 to 41.5 million in 2017, implying that in 2019, the figure must have risen to over 50 million, especially against the backdrop of dwindling economic fortunes, where job cuts and unemployment rate have risen to over 38 per cent with 28 million youths unemployed.
Obviously, the right way to go is the emergence and funding of MSMEs and COOPs which will play critical roles in re-shaping the economic well-being of the teeming unemployed, but productive Nigerians who, by no fault of theirs, are idling and roosting for lack of white-collar jobs.
Though the Central Bank of Nigeria (CBN), in collaboration with some commercial banks as well as other governmental bodies, have made efforts in encouraging COOPs and MSMEs, we think that so far, it is not enough. Deliberate and proactive measures must be put in place to further encourage and boost these micro-businesses. Minimal lending rate remains the key.
The establishment of micro-finance agencies and banks, to say the least, has not really made the desired impact. It is our candid position that soft loans, grants and other incentives as well as adequate budgetary and extra-budgetary measures are the right path to follow, if Nigeria must be reckoned with as a global economic power.
In Asia, Europe and North America, MSMEs and COOPs play significant roles in the economic development of their countries. China, Japan, Brazil, Malaysia, Singapore, South Korea, just to mention a few, owe their strong economies to these micro-businesses. Nigeria, therefore, must strive to be on the same page.
The Tide endorses in its entity the report of the Federal Ministry of Trade and Commerce, urging the National Economic Council (NEC) to mobilise funds to over 37.07 million MSMEs, representing 84 percent of manufacturing and productive sectors and 45 percent of the nation’s GDP.
As the UN’s Deputy Secretary-General, Amina Mohammed, unequivocally stated while marking this year’s celebration of MSMEs, “these micro-businesses are key and critical to any country’s economic emancipation and, of course, remain road maps to creating 600 million new jobs needed by 2030 to keep pace with the world’s working age population.”
Funding and financing them surely means taking bold steps to achieving set out goals towards 2030 Agenda for Sustainable Development. Nigeria must, therefore, key into this global model for economic stability and prosperity.
We must also support our MSMEs and COOPs to flourish as a deliberate policy of unlocking Nigeria’s economic potentials and diversification of the nation’s monolithic economy. In this era of limited white-collar employment, MSMEs and COOPs remain the right path to follow.
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