9th November, 2021
The Chairman, Senate Committee on industries, Senator Mukhail Adetokunbo Abiru, on Monday organized a capacity development training for 1000 Micro, Medium and Small Enterprises, MSMEs in the Lagos East Senatorial district.
He said the training was to enhance the capacity of micro, medium and small business owners in the Senatorial district to scale adding that lack of capacity had been identified as one of the major reasons MSMEs fail.
Highlighting the critical roles MSMEs play in the nation’s economic development, Senator Abiru said “MSMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development.
“They represent about 90% of businesses and more than 70% of employment worldwide.”
“Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included.
“The latest SMEDAN/NBS MSME Survey indicates Nigeria’s SMEs contribute nearly 50% of the country’s GDP and account for over 80% of employment in the country.
“It has been projected by the World Bank that about 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world.
“In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs.”
He said it was therefore instructive to assist the struggling businesses who were mostly impacted by the devastating COVID-19 pandemic with workable business solutions in the new normal world.
The senator said that the knowledge pack, a combination of seven books written by foremost experts which participants got for free are reference materials for now and future adding that their contents are the secret of success of most major businesses.
Senator Abiru also announced the launching of N100 million soft business loan support trained MSMEs with working capital, as well as asset finance for equipment acquisition at a highly subsidized interest rate.
The N100million constituency Intervention revolving facility which be executed in partnership with Small and Medium Enterprises Development Agency, SMEDAN has minimum limit of N100,000 (One hundred Thousand Naira) and maximum of N1,000,000 (One million naira) with as low as 6% interest rate with flexible repayment plan from 1 to 12 months starting end of first quarter (Q1), 2022.
The senator mulled plans to increase the revolving facility on yearly basis.
The Bank of Industry (BOI) also committed an additional 100 million to the scheme.
A former Lagos State Commissioner of Finance and Governor’s Advisory Council member, Mr Olawale Edun applauded the gesture of Senator Tokunbo Abiru describing the business aid as a great initiative.
Also, a former Minister of works, Senator Adeseye Ogunewe urged other elected public office holders to learn from the giant strides of Abiru.
The one-day MSME Clinic/Workshop that was organized in conjunction with The Fate Foundation. It had major figures in the MSMEs ecosystem in attendance.
Some of them are the Mr Olukayode Pitan, Managing Director, Bank of Industry; Mr Ayodele Subair, The Executive Chairman, Lagos State Inland Revenue Service (LIRS); Mrs Tejumola Abisoye, Executive Secretary, Lagos State Employment Trust Fund; officials from Small and Medium Enterprise Development Association of Nigeria (SMEDAN) led by the agency’s Director of Planning Research, Monitoring and Evaluation, Mr Wale Fasanya and Standard Organization of Nigeria(SON) team led by the Head of SME desk, Mrs Phebean Arumemi and renowned business consultants.