Abuja, June 28, 2023: The Abuja Chamber of Commerce and Industry (ACCI) has called on the Federal Government and stakeholders to empower and support the Micro, Small and Medium Enterprises (MSMEs) for a sustainable future.
The President of ACCI, Dr Al-Mujtaba Abubakar, said in a statement that this could be achieved if the federal government and stakeholders could synergise their efforts.
Abubakar spoke while commemorating the 2023 World MSME Day which had the theme, “Empowering MSMEs for a Sustainable Future” with a sub-theme, “Building a Stronger Future Together.”
The World MSME Day is an annual celebration slated for June 27, and is geared towards promoting various MSMEs initiatives.
It is meant to encourage innovation and development of new products and services, promote regional development and create market opportunities in the domestic and global markets.
It also encourages MSMEs to adopt sustainable practices for national growth and development.
According to Abubakar, the MSME sector is the future of any growing economy.
He further said that in spite of the challenges facing it, the sector had continued to thrive due to the large market that Nigeria provided.
“MSMEs hold the potential to transform economies, foster job creation and promote equitable economic growth if given adequate support.
”Thus, MSMEs Day aims to highlight its pivotal role and explore opportunities for further advancement,” he said.
The ACCI president said the internal problems of SMEs in Nigeria include multiple taxation, inadequate working capital, stiff competition from larger companies and difficulties in sourcing raw materials.
He said low capacity utilisation, lack of management strategies, poor educational background of operators and huge financial problems are also part of the challenges.
Abubakar listed the external challenges as including human capital, size, age, and managerial competence.
He further said the MSMEs are faced with so many hurdles that frustrate the ease of doing business.
”The recent merriment fees policy of government charged on hoteliers and event centres, which is expected to be paid to the area council before any event holds is a challenge.
”Access to finance is a major issue, especially for businesses that want to expand, as they can hardly access government or bank loans due to the set requirements that make it impossible.
”Regulation and policies, facility location, intensity of competition, stage of the industry, financial difficulties, and the attitudes of banks towards new business owners are important influential factors in SMEs’ success.
“The Policy Advocacy Centre of the Chamber has over the years organised MSMEs events and as well advocated various policies that strengthen capacities and support MSMEs development and entrepreneurship for women and youth,” he said.
Abubakar also called for harmonisation of taxes, streamlining of revenue agencies and synergy between the three tiers of government.
He said compulsory registration of businesses with any accredited Chamber of Commerce would ease business access to finance, as the Chamber would have vetted the viability of the business before it accesses any loan.
According to Abubakar, research has revealed that Nigeria is home to over 36.9 million businesses, and 67 per cent of these businesses are youth-owned.
He said: ” MSMEs contribute over 45 per cent of the country’s Gross Domestic Product (GDP).
“With 98.8 per cent of them in the micro cadre. The MSME also accounts for nearly 90 per cent of the jobs in the country.
”As a foremost Chamber of Commerce in Nigeria with over 3000 SME registered members, I urge both the government and business stakeholders to channel all their efforts, finance and resources to support the advancement of the MSMEs in Nigeria.
