Amaka  Obiefuna

The Nigeria Deposit Insurance Company (NDIC) has harped on the need to further develop and implement the Micro, Small and Medium enterprises (MSMEs) as a major source of economic growth in the country.

NDIC while lamenting the myriad of problems facing the MSMEs noted that this segment of the economy occupies an important position in the economic development of any country, especially in the case of Nigeria which is a commodity market.

Director, Research Department, NDIC, Dr. S. A. Oluyemi, presenting a paper entitled; implementation of the micro, small and medium enterprises in the development of the Nigerian economy’ at the 2018 Finance Correspondents Association of Nigeria (FICAN) Workshop holding in Benin, Edo State, said that the critical contribution of MSMEs to broader social economic objectives, including job creation make them a key priority area for achieving the Sustainable Development Goals (SDGs).

He pointed out that the country’s MSMEs are characterised with intensive production processes, concentration of management on the key man, limited access to long term funds, high mortality rate especially within their first two years, poor product quality output, absence of Research and Development coupled with poor accountability among others.

According to him efforts were made in the past to spur MSMEs by support institutions and opportunities created by government which included the Small Scale Industries Credit Scheme (SSICS) of 1971, Community Banks, People’s Bank, Nigerian Export Import Bank (NEXIM), National Directorate of Employment (NDE) and many others.

Oluyemi however, regretted that despite these robust contributions, Nigerian MSMEs are still facing myriad of challenges that significantly affect their productivity and performance.

Challenges like insecurity, lack of training and vocational facilities, lacklustre approach to government policy enunciation and poor implementation, poor management, corruption and cultural issues still abound. Also challenging is lack of official patronage of locally produced goods and services, making Nigeria a dumping ground of foreign goods

To tackle these challenges in order to make MSMEs contribute immensely to the growth and development of the economy, Oluyemi  stated that Nigeria has potentials and opportunities for MSMEs in Nigeria to rebound and play the crucial role of engine of growth, development, industrialisation, wealth creation, poverty reduction and employment creation are enormous.

He therefore called on the federal government to establish Industrial Development Centres (IDCs) in every state of the federation, revamp the old ones, and make all of them functional.

He also urged the government to establish SME clusters in relevant sectors in areas that have comparative advantage for such sectors such as Auto Parts Cluster in Nnewi, Leather Products Cluster in Kano, Apple Processing Cluster in Plateau, Export Clusters for Cocoa in Ondo, Cashew Crushing Plant in Oghe and others.

Continuing, Oluyemi also urged the government to tackle accelerated development and upgrade of rural and urban road and rail network, water and air transport system and other infrastructural facilities head on and review tariff in favour of local manufacturers especially the SMEs, adding that stakeholders should be involved in SMEs policy formulation.