NASME urges robust financing for MSMEs to enhance sector

The National Association of Small and Medium Enterprises (NASME), has called for more robust financial windows for Micro, Small and Medium Enterprises to enhance development of the sector.

The Chairman, Lagos State Chapter of NASME, Mr Solomon Aderoju, made the call during a media briefing on Wednesday in Lagos.

According to him, financial institutions are not supporting entrepreneurs the way they should and even when they do, the interest rates are high and the conditions too stringent.

“This has created more problems for businesses as none of the 300 members of NASME in Lagos has benefited from any of the financial interventions of government.’’

Aderoju said that the establishment of Development Bank of Nigeria (DBN) may not bridge the financing gaps to MSMEs, since it would still use Deposit Money Banks for disbursement.

“What we are saying is that Business Membership Organisations like NASME and others should be allowed to handle direct disbursement to our members.

“We know our members and their capabilities, more so, we have cooperative society that can deal directly with development finance institutions.

“The banks do not give out government funds to us, they frustrate every avenue to get the funds and would rather promote their own loans that attract more interest rate,” he said.

The chairman said that the challenge of robust financing for the sector had increased economic uncertainty, made the economy perform at low level of subsistence, and increased unemployment and poverty rate in the country.

According to him, to address the issue and other challenges facing MSMEs in the country, the association will hold a business roundtable on Aug. 2.

He said that the event with the theme: “Building a globally competitive economy through MSMEs” would draw more attention and proffer solutions that would boost the competitiveness of businesses.

According to Aderoju, industry experts, government officials and financial institutions among others are expected to attend the roundtable.

The attendees are also expected to evolve solutions that will stimulate economic growth and boost MSMEs contribution to Nigeria’s Gross Domestic Product (GDP) growth.