To help micro, small and medium enterprise (MSME) development, the authorities should facilitate entry to inexpensive funding by collaborating with monetary establishments to develop MSME-friendly mortgage merchandise with decrease rates of interest and simplified software processes.
Talking in Lagos, President of the Lagos Chamber of Commerce and Trade (LCCI), Gabriel Idahosa, regretted that MSMEs in Nigeria are confronted with vital challenges, together with insufficient entry to finance and unreliable energy provide.
He stated a current PwC survey revealed that 35 per cent of companies recognized restricted financing as their major development inhibitor, whereas 21 per cent highlighted poor electrical energy as a significant operational hurdle.
These constraints, he stated, have frequently stifled the expansion potential of MSMEs, that are important contributors to Nigeria’s GDP and employment.
He additionally urged the federal government to speculate in dependable energy infrastructure or present incentives for different vitality options to alleviate the vitality challenges confronted by small companies, saying this could allow them to function effectively and competitively.
“We urge the authorities to spearhead transformative reforms within the manufacturing sector by addressing essential price drivers similar to excessive inflation, rates of interest, a number of taxation and FX volatility. Strategic measures ought to embody instituting single-digit tax regimes for manufacturing entities, stabilising the naira by means of proactive FX insurance policies and leveraging public-private partnerships to cut back manufacturing prices. MSMEs stay the spine of our economic system and we urge the authorities to develop entry to credit score at concessionary charges beneath the prevailing CBN MPR,” he stated.
He added that introducing technology-driven lending platforms and tailor-made monetary literacy applications can empower MSMEs to scale operations successfully mitigating rising manufacturing prices, safeguarding employment and bettering the competitiveness of Nigerian merchandise in regional and world markets.
“We urge the federal government to allocate vital assets from the 2025 finances in the direction of modernising infrastructure, streamlining refinery operations and eliminating gas provide bottlenecks. By fostering vitality effectivity and decreasing the price of logistics, these measures will drive industrial development, appeal to international funding and enhance the general enterprise surroundings in Nigeria.
“Now we have constantly stated price hikes alone is not going to curb inflation with out resolving the challenges of the agriculture and manufacturing sectors. The true sector has demonstrated the capability to create jobs, manufacture for consumption and export and type the economic system’s industrial base. The floating alternate price coverage adopted final 12 months has not proven optimistic outcomes. As an import-dependent nation, we have to think about higher administration approaches that match our economic system,” he stated.
He stated if authorities harmonises its fiscal and financial insurance policies to sort out the price of agricultural manufacturing, improve meals processing and maintain the combat towards insecurity, inflationary pressures might start to abate and different financial variables can start to report optimistic indicators.
