SMEs

Stakeholders Task Govt On Finance, MSME Environment

Published

2 years ago

March 17, 2021

Stakeholders of the Africa Continental Free Trade Area (AfCFTA) has urged the government and its monetary authorities on ease of access to finance by Micro, Small and Medium Enterprises (MSME) for their greater partici-pation and success in AfCFTA.

The Stakeholders made the call at a forum organised by the Lagos Chamber of Commerce and Industry (LCCI) themed: “AfCFTA: Roadmap to a successful implementation” on Tuesday in Lagos.

The The source reports that the AfCFTA was borne out of the need to deepen economic integration on the continent because of Afri-ca’s low intra-regional trade volume in relation to other continents like America, Europe, and Asia.

The agreement seeks to eliminate tariffs on 90 per cent of goods while also enabling micro, small, medium, and large businesses to penetrate new markets and establish strong cross-border supply chains with trade partners on the continent.

Acting Chief Trade Negotiator, Nigerian Office for Trade Negotiations (NOTN), Mr Victor Liman, noted that access to finance was still a major challenge hindering private sector businesses.

According to Liman, the cost of money was too high for most MSMEs who constitute about 50 per cent of the Gross Domestic Product (GDP) of the Nigerian economy.

Liman also called for the need to reform some trade policies that had acted as barriers to international trade.

He noted that three critical factors which are effective and seamless implementation, compliance and rigorous enforcement would make or mar the AfCFTA.

“We are looking to increase intra- African trade from the abysmal numbers ranging between 15 and 17 per cent to 35 or 50 per cent, which will provide a market size of about 600 million people.

“There are some factors that will act as enablers for the seamless implementation of the trade agreement in Nigeria.

“Special funding interventions for MSMEs with lower interest rates and longer tenure is critical as an enabler of the trade.

“We need to review of some laws regulations and policies which have become moribund overtime.

“Authorities and regulatory agencies must understand their roles and act accordingly,” he said.

In his remarks, Mr Wamkele Mene, Secretary General, AfCFTA Secretariat, stressed the need to engage private sector operators as the sector constituted 90 per cent of employed population and 80 per cent total production in the continent.

Mene also noted that MSMEs were the real traders, real investors and the real job creators, responsible for moving goods and services across borders.

“In Africa, the private sector accounts for 80 per cent of the total production activities, furthermore, 90 per cent of the firms with the African private sector are MSME.

“To successfully implement the trade agreement, all member states must actively engage with the private sector, allow them share their experiences and also find solution to challenges that will hinder business activities.

“Nigeria has a lot to benefit in areas of services, market expansion and investment in the trade pact and so must prioritise implementation of policies that would ensure job creation for sustainable development,” he said.

Meanwhile, Otunba Niyi Adebayo, Minister for Industry, Trade and Investment, said the pact presented opportunities for Nigerian businesses to expand operations.

Adebayo, represented by Secretary, National Committee on AfCFTA, Mr Francis Anatogu, said that the pact would additionally expand market access that would catalyse local production which supports the nation’s industrialisation drive.

Adebayo said the federal government was working relentlessly to mitigate the challenges of the trade deal.

“There is the need to build a strong national brand to set Nigeria aside from other African countries.

“Nigeria is committed to the full implementation of the agreement as we are also implementing programmes to aggregate SMEs for export trade,” he said.

President, LCCI, Mrs Toki Mabogunje, said it had become necessary to deliberate on the appropriate policies to ensure aspeedy and effective implementation of the agreement across countries of the continent.

According to her, a well-implemented AfCFTA would stimulate economic growth, create jobs, and facilitate the economic diversification of African economies.

The LCCI President lauding the takeoff of the agreement, noted that critical parts of the agreement were yet to be finalised.

Mabogunje said several key issues including schedules of tariff concessions, schedules of service commitment, rules of origin, investment, competition policy and intellectual property rights had not been concluded.

“There is still lack of clarity on the type of value addition that must occur within an AfCFTA State party for a product to benefit from tariff reduction.

“A great deal of sensitisation and enlightenment still needs to be done on the implementation modalities, and this forms the basis for putting this event together,” she said.

SMEs

SMEDAN Trains 90 Unemployed Youths

Published

4 days ago

March 29, 2023

The Tide

The Small and Medium Enterprises Development Agency (SMEDAN) has commenced the training of 90 unemployed youths in fashion, leather work and hair dressing in Taraba State.
Director General of the agency, Mr Olawale Fasanya, said this at the opening of the National Business Skills Development Initiative (NBSDI) programme in Jalingo on Monday.
He said the programme is aimed at supporting Micro, Small and Medium Enterprises (MSMEs) in a most practical way.
Fasanya, who was represented by the Head of Enterprises in the agency, Dr Funto Babarinde, said the agency had developed the programme to provide entrepreneurship skills, vocational skills, and the provision of empowerment materials to fill the capacity gap of the youths.
He also said the programme was designed to enhance youths engagement in productive ventures, adding that the initiatives will bequeath the youth with the capacity to earn income through filling the artisan gap in Nigeria.
According to him, the programme had been implemented in all the states of the federation, including the FCT, and that a total of 3,330 entrepreneurs had been impacted with entrepreneurship skills, vocational skills and empowerment equipment at the rate of 90 per state and the FCT.
The Director General said the agency expected improved business management practices, adding that improved service provision by the trained artisans would also be achieved.
He said there would be an increase in finance, equipment and other business resources, as well as formalised artisanal businesses.
Fasanya advised participants to take the training serious, saying it is a window of opportunities to end poverty and unemployment.
A participant, Mr Solomon Musa, said the training would go a long way in impacting positively in the lives of the Nigerian youths.
He commended the Federal Government for the initiative.

SMEs

NDE Trains Unemployed Women On Shoe, Bag Making

Published

4 days ago

March 29, 2023

The Tide

The National Directorate of Employment (NDE) has commenced a five-day Women Employment Branch (WEB) empowerment training for 20 selected women in bag and shoe making in Nasarawa State.
The State NDE Coordinator, Mr Chris Bamsida, said this at the opening of the training orientation ceremony in Lafia on Monday.
Bamsida described the scheme as the emergent and trending trade among women across the federation.
“Today marks a turning point in the aspirations of the beneficiaries as they will be trained in the skills of making various categories of shoes and palm slippers for both male and female, and bags such as laptop bags, school bags, back pack, food warmer bag and handbags.
“The training will last for five days, from Monday 27th to 31st March, 2023, from 9 a.m to 3 p.m daily”, he said.
According to him, the scheme is targeted at unemployed women who have vested interest in the skills.
“The scheme is designed to achieve the following objectives: to train beneficiaries in emergent and trending skills in the art of shoe and bag making; reduce their dependency on other people, thereby reducing poverty; and raising income generation and redistribution among the people.
“It will also mprove the living standard of the beneficiaries and their families”, he said.
Bamsida stated that professionals were engaged to impact the best knowledge to the beneficiaries during the exercise.
He urged the beneficiaries to abide by the rules and regulations guiding the training by exhibiting high level of commitment and discipline to ensure that the goals of the training are achieved.
The State Coordinator warned against truancy, adding, “I expect to see you as future trainers of these skills at the end of the training.
“This will not only enable you to provide jobs for others, but will enhance your contributions toward improving the standard of living in our homes and the society at large”, he said.
Bamsida also disclosed that the directorate in collaboration with National Drug Lew Enforcement Agency (NDLEA) would sensitise the beneficiaries on the effects and dangers of drug abuse during the training.
He called on the State Government, individuals and NGOs to key in and collaborate with the directorate to eliminate the “monster” called “unemployment and poverty” in the state.
Bamsida thanked the Governor of the State, Abdullahi Sule, for creating an enabling environment for the directorate to achieve its objectives in the state.
The Head of Department, Small Scale Enterprises (SSE), NDE, Abuja, Ms Chikodi IKe, also commended the Director General for initiating different programmes in tackling unemployment in the country.
Ike, who was represented by Mr Umar Aliyu, a staff from NDE headquarters, Abuja, urged the beneficiaries to use the knowledge they will gain to contribute positively to the development of the society.
Responding on behalf of the beneficiaries, Mrs Maryam Yahaya, thanked NDE for the gesture and promised to take the training seriously.

SMEs

FCT Traders Applaud CBN Over Cash Availability

Published

4 days ago

March 29, 2023

The Tide

Some traders in the Federal Capital Territory (FCT) have expressed delight over improvement in the availability of naira notes to citizens.
The Tide source reports that many markets in Abuja, on Monday, returned to normal daily business activities as Central Bank of Nigeria (CBN) injected more naira notes to the commercial banks.
A meat seller, Alhaji Audu Ali, said since the naira scarcity started, business had not been good, adding that most days he had no meat to sell due to the development.
“We use cash to buy the cows from the sellers because most of them do not believe in cash transfers or have no bank accounts.
“Many people coming to buy from us always do transfers and this makes it difficult for us to buy from the sellers, who usually demand for cash before they sell to us”, Ali said.
He, however, said since Saturday, patronage with cash had gotten better, adding that it had become easier for everyone to do his/her transaction with cash.
A civil servant, Mrs Ella Aminu, expressed happiness, saying it is now easy for her to get cash from her bank to buy food items, unlike before.
“Lots of citizens had suffered during the period of cash scarcity, as many vendors preferred to do their businesses in cash.
“Again, Point of Sale (POS) operators in the market always charge interest per vendor. How much are the salaries of these buyers who are majorly civil servants?”, he queried.
Aminu said in view of the situation, many of the POS operators took advantage of the naira scarcity to make outrageous profits from their customers.
She, however, commended the Federal Government for obeying the Supreme Court judgment extending the use of old naira notes as a legal tender till December 31.
A vegetable seller, Mallam Usman Baba, said he only made little money since the beginning of naira scarcity.
“Most of my vegetables perished, as I experienced low patronage from my customers. But, with the recent development, everything is getting better”, he said.
Recall that the CBN had, in October 2022, announced the redesigning of N200, N500 and N1,000 notes.