Posted on July 3, 2009 - by boris
Abia releases N4b to MSMEs’ operators…
Abia State government
Abia State government has released N 4 billion to operators of Micro, Small and Medium Enterprises (MSMEs), under the Central Bank of Nigeria (CBN) Trust Model and Agricultural Credit Guarantee Scheme (ACGS).
The programme would be executed in collaboration with Guaranty Trust Bank Plc, Spring Bank, Fin Bank and Wider Perspectives Limited (a consultancy firm).
Essentially, the fund injection programme was targeting at bolstering the operations of MSMEs.
These disclosures were made at the recently concluded one-day Business Development Services (BSD) Fair, in Aba, Abia State.
The Permanent Secretary in the State Ministry of Commerce and Industry, Deacon Nene Iroakasi, said the BDS fair was part of the on-going efforts to re-position the MSME sector and drive development in selected non-oil sector, stressing that MSMEs are the starting point of industrial growth of any nation and the bedrock of its economic development, employing over 70 per cent of the state populace.
She therefore advised all participating stakeholders to embrace the programme to ensure what she called a systematic plan for a viable sustainable economic growth and development plan hoping for a more synergistic relationship between Business Development Services (BDS) Providers, the Ministry and the private sector towards improving the MSMEs in Abia state.
The Executive Secretary/Chief Executive Officer of Nigerian Investment Promotion Commission (NIPC), Mustafa Bello, represented by Mr. John Osuji, said that the purpose of the fair was to launch in Abia State what is extremely important milestone of the Nigeria MSME Project- the BDS fair, with the objective of demonstrating the impact of the BDS fund on MSMEs/BDS market”.
He defined MSME project as a pilot programme of the World Bank and the Federal Government, with the NIPC as the implementing agency, adding that the project has addressed some of the key constraints that held back their growth namely, access to finance, development of business services and investment climate.
On access to finance, he said that $8.4 million grant has been approved for six named microfinance banks, which he explained has acted as a catalyst in attracting over $20 million of New Private Sector Investment into the Micro Finance Institutions adding that already, the six Micro Finance Banks have commenced operations and serving over 800,000 active clients including 50,000 active borrowers.
According to the NIPC boss, to date, the BDS recorded four great achievements, namely, $ 3million of grants awarded to 58 BDS providers, 9,473 MSMEs supported directly by BDS providers, completion of a catfish farming value chain development programme, covering Abia, Kaduna, Lagos and Oyo states and the on-going Value Chain Development Programme for Tourism in Cross River state, Palm Oil in Abia and Rice in Kaduna.
On the poor investment climate, which he identified a range of legal, regulatory and institutional constraints to MSMEs performance, he said that through the investment climate component, the project will address these by:
* Streamlining the business registration process and support resulting in the opening of a Corporate Affairs Commission Office in Umuahia;
* quickening the resolution of commercial disputes through supporting the establishment of viable Alternative Dispute Resolution mechanisms and institutions;
* supporting the CBN in preparing and reviewing guidelines for Licensing, operating and regulating Credit Bureaux in Nigeria; and
# introduction of a secured transactions regime that will enable MSMEs realise and utilise capital tied up in working assets.
According to the NIPC Executive Secretary, with the MSME project, the Federal Government has re-established the private sector in its rightful place as the engine of economic growth, adding, however, that what is of greater importance is how this growth can be harnessed to reduce poverty.
In this regard he opined that it would be so achieved ” if it impacts on the sectors that matter for the poor and from which they derive their incomes and livelihoods while at the same time providing new opportunities for them to improve their livelihoods”.
High points at the fair/meeting were presentations/testimonies by BDS Providers and the Beneficiaries, questions and answers session with panel of Experts, visits to stands/displays- interaction and networking between small and medium sized businesses and providers of financial and non-financial services which all showed that the project was desirable and progressing.
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