The Abuja Chamber of Commerce and Industry (ACCI) has called on the Nigerian Government to adopt the global best practice of funding Small and Medium Enterprises (SMEs).
The President of the Chamber, Mr. Adetokunbo Kayode, said during a strategic partnership building meeting with Dr. Dikko Radda, the Director-General, Small and Medium Scale Enterprises Development Agency of Nigeria (SMEDAN) in Abuja that a targeted funding mechanism for SMEs should be put in place to boost the country’s economy.
He noted that the country needs institutions whose focus will be principally on SMEs.
“I have been expressing my concern at the way and manner our SMEs are funded, which is normally through the commercial banks and other intervention funds domiciled in different institutions.
“The mechanism for funding for SMEs is tedious; the strategy of government is good; the intent to fund is there, but how do we get the money to those that need it,” he said.
According to Kayode, the institutions such as the Bank of Industry and Bank of Agriculture are not structured to provide long-term funding.
He said that the Memorandum of Understanding (MoU) signed by the chamber and SMEDAN would serve as a modest effort at developing the Nigerian economy just as public private partnership would open up many opportunities for the country and those who would operate under the mandate of the agency.
He urged the agency to enrol the chamber as one of its Business Membership Organisation (BMO), saying: “There is need to adopt ACCI as talent incubation hub; go into partnership with us in the area of capacity building as well as skill acquisition.’’
In his response, the director-general of SMEDAN noted that funding and capacity building are the major challenges before the SMEs in the country.
“We need to do so much in the area of capacity building. This collaboration is a good start for SMEs in the country,’’ he said.
GIK/APA