A Micro, Small and Medium Enterprises (MSME) operator, Mrs Yewande Adekoya, has highlighted tax incentives, low interest loans, government, banks and MSMEs collaboration, as steps crucial to improving Nigeria’s economic outcomes.
Adekoya, also Managing Partner, Ruack Nigeria Ltd., said this during an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos.
She emphasised the need for the incoming administration to provide the necessary structure and system for MSMEs to operate maximally for better profitability.
The expert lauded President Muhammadu Buhari led administration for the efforts to revitalise MSME, stating that more could be done to continually improve the country’s position in the ease of doing business ranking.
According to her, improved power generation, better means of transportation and logistics, more distribution of grant, tax incentives and lower interest rates, will address majority of the challenges faced by MSMEs.
“MSMEs do not have the structure or system they need to operate maximally and they form the bulk of Nigerian business so it is very important to create that for them.
“While the President Buhari led-administration have tried to help improve the lot of MSME, the incoming administration can do better by creating a better enabling environment to make their cost of production cheaper.
“There’s need for better collaboration between government, commercial banks and MSME to provide an interest rate that is not detrimental to the growth of any MSME in the country.
“Tax incentives and funding assistance or subsidies by government on the purchase of technological equipment, parts and machineries would help these classes of business run better.
“In all, we are asking for better policies to ensure the smooth running of MSME seeing that they form the bulk of Nigerian businesses and their contribution to Gross Domestic Product (GDP) and economic development cannot be overlooked,” she said.
Addressing the Naira redesign policy by the Central Bank of Nigeria (CBN), Adekoya said that going forward, both government and the CBN must ensure that a more robust system was in place to accommodate such transitioning.
“While the policy on its own was a good one, the groaning of MSMEs under that policy was enormously felt.
“Before such a policy is implemented, government, CBN and the banks should have come together to ensure that the alternative to cash which is the online system works at its peak.
“Thankfully, it has been reversed but government must ensure going forward that everything is in place, so that the policy does not hamper businesses,” she said.
The MSME operator advised small businesses to leverage technology to increase income, reduce costs, gain more visibility and clientele to waddle through the current tough times.
She said that MSMEs must continue to evolve its use of e-commerce, share common cost with clusters where necessary to engender maximum profitability.
Adekoya added that MSME must begin to put in place early several plans for succession as the business grows to engender longevity.
“MSME must put a software solution in place so that the business can begin to run by itself and must with time delegate key positions as it grows to groom succession.
“It does not have to be family members but person’s with skills and potentials critical to the successful running of the business,” she said.
Adekoya stressed that MSME must begin to embrace local substitute for what is ordinarily imported for a better balance of trade which creates availability of foreign exchange for critical components.
She emphasised that government and MSMEs must work hand in hand to shore up the country’s exportation indices for better economic outcomes.
“We are in a VUCA (Volatility, Uncertainty, Complexity and Ambiguity) era where things are changing. So, all MSME must be ready to get more skills and develop mindset shift accommodate and provide solutions to the changes,” she said.
