Small businesses aren’t equipped enough to access funding, says SMEDAN DG

Charles Odii, director-general of the Small, Medium Enterprises Development Agency (SMEDAN), says small businesses are not equipped enough to access funding.

Odii spoke on Thursday at the 2024 National MSME Conference, in Abuja.

He also said the agency identified lack of access to capacity development, high operating costs, limited infrastructure, and poor market and regulatory burdens, among others as challenges faced by micro, small, and medium enterprises (MSMEs).

“Very recently, we had half a billion naira in the bank, sitting somewhere, for small businesses but just about 12 entrepreneurs were able to access the N600 million for small businesses,” Odii said.

“We discovered that the problem is that our small businesses are not equipped enough to access that funding.”

Odii added that the agency has begun solving the challenges by reaching out to MSMEs through clusters and with the use of technology.

‘LOCALISATION OF PRODUCTION PROCESSES, COST REDUCTION CRITICAL TO ADDRESSING HUNGER’

On his part, George Akume, secretary to the government of the federation (SGF), said the localisation of production processes and cost reduction are critical factors in addressing hunger in Nigeria.

Akume said the country’s economic challenges, including food insecurity, stem from a reliance on imported goods and inefficient local production.

“Nigerians experience hunger because we have not fully localised production processes and reduced costs effectively,” he said.

“I also realise the importance of innovation and digitalisation to this purpose. There is no justice in creating an economy that is not sustainable for the coming generations.

“Our constitution frowns upon it, I frown upon it, and morality frowns upon it. As a country, we are still suffering the effects of trying to shift from a crude-based economy which has left us debt-ridden.

“Thus, the need to move the production and wealth-generating power of the economy to the people. It is in doing this that we can ensure equal distribution of resources.”

Speaking on the roles of MSMEs, Akume said they are engines of rural industrialisation, poverty alleviation, and sustainable development.

Also, he reiterated the government’s commitment to fostering a sustainable and innovation-driven economy.

Akume called for collective efforts to enhance local production capabilities, adding that by reducing production costs, the government could improve access to essential goods and alleviate hunger.

He urged stakeholders to engage in dialogue to identify and implement strategies that could streamline processes and enhance productivity.

‘DIGITISATION WILL BOOST ECONOMY’

Akume also pointed out the significance of digitalisation and innovation in localising production, emphasising that these elements were essential for creating a resilient economy.

According to the SGF, the government is already taking steps to support the vision, including the inauguration of various initiatives aimed at mobilising resources for MSMEs.

He invited both domestic and international investors to explore opportunities within Nigeria’s growing market, assuring them that the government was committed to creating a business-friendly environment.

On her part, Doris Uzoka-Anite, minister of industry, trade and inestment, said digitisation is critical in driving MSMEs in the country.

“Our government firmly believes that through digital transformation, our MSME sector can reach heights never witnessed by our dear nation,” Uzoka-Anite said.

“Digital transformation can result in increased productivity; technologies can help MSMEs to automate tasks, improve efficiency, and reduce costs.

“I therefore encourage you all to embrace digitisation, embrace technology, and as always, embrace innovation so that together we can continue growing Nigeria to greater heights than ever.”

The minister also said the federal government is commited to supporting MSMEs.