By Steve Agbota
The Education Committee of Nnokwa Progress Union (NPU), Lagos branch, has urged government at various levels to take concrete steps to invest more on infrastructural development with a view to growing small and medium businesses in the country.
The Union, which gave this advice at the weekend in Lagos at its 2017 Business Forum, acknowledged how SMEs have been developing economies , creating jobs and reducing poverty around the world.
A team of experts from the banking and business sectors, which examined the theme of the event, Growing Small and Medium Scale Business Enterprise in today’s Nigeria Economy, also dissected the challenges facing SMEs, opportunities to be tapped and how to actualise them.
Speaking at the forum, the Chairman of the Union, Rev. Emeka Abone, said that the survival and ability of SMEs to continue to impact positively on the economy was something every stakeholders must pay closer attention to, adding that the theme of the Forum was carefully chosen by the committee because of the pivotal role that SMEs play, not only in Nigeria, but worldwide.
According to him, Small and Medium Scale Enterprises are generally regarded as growth engine of the economy and account for majority of informal employments. He explained that SMEs play an increasingly important role in addressing developmental challenges especially in relatively untapped sectors.
Abone said SMEs serve as a veritable tool in addressing poverty alleviation. In today’s Nigeria, there is seemingly high rate of unemployment, business closures, poverty and starvation occasioned by the biting economic depression that we are currently witnessing. The purchasing power of the ordinary citizen is gradually being diminished. How can we redress such a situation? We need to tackle it holistically. This involves going back to the basics.”
In his keynote address, the Executive Chairman of NPU Lagos, Prince Charles Ezeagwu said that all over the world, small and medium scale business have come to champion the economic growth of their different countries. He stated that in Nigeria, SMEs, which comprise sole proprietors, partnership, among others, are known to provide the needed synergy for the growth that the nation needs.
He lamented that the challenges of most SMEs are hinged on inadequate capital, saying that some startups require loans, both short term, medium term, and long term loans to help them achieve their corporate goal.
“In Nigeria sourcing for loan is a major challenge. Another daunting challenge is that of power. Electricity is needed to produce value in virtually all areas of our national life. Majority of our SMEs are out of business because of the cost of generating power for their business operation,” said he.
Speaking on the way forward to grow SMEs in Nigeria, he said there is need for huge investment on infrastructural development such as provision of good road network, and constantly ensuring adequate maintenance of the facilities when provided.
He noted that the Federal Government should encourage export promotion, which would result in generating additional sources of foreign exchange for the nation. He added that through these measures and more, there would be a greater turnaround in the fortune of small and medium scale businesses in the country.