FG Pledges More Support to SMEs
- By Simeon Ogoegbulem
- Published March 22nd, 2010
- News
- Unrated
THE federal government has pledged to provide more support to the micro, small and medium scale enterprises in the country in order to enable them play a pivotal role in the growth of the economy. Government said the support may come in form of funding and tax rebate, among others.
Remi Babalola, immediate past minister of state for finance, made the pledge in Abuja while meeting with the executive council members of the Nigerian Association of Small and Medium Enterprises (Nasme) led by Dr. Ike Abugu, its president.
Babalola stated that SMEs are fundamental to the growth of any economy as they are the real people creating jobs, stressing that government would create incentives for SMEs and entrepreneurs in the country.
The former minister explained that government is already supporting the SMEs through the agric credit guarantee scheme and other initiatives being implemented by the Central Bank of Nigeria (CBN) and also through the Small and Medium Development Agency of Nigeria (Smedan).
Earlier, Abugu had called for a comprehensive, economy-wide and an all-embracing stimulus package for the SMEs. This, he noted, had become necessary for the SMEs to continue to encourage entrepreneurship, create wealth and jobs, and act as catalysts for technological development and innovation.
Abugu also called for the establishment of SME banks in the country to provide funding for the enterprises. He regretted that there are currently no financial institutions specializing in SMEs in Nigeria today, pointing out that deposit money banks, as they exist in Nigeria today, are not of much use to genuine SMEs that need affordable, long-term financing.
Nasme was established in 1996 by agencies of the federal government, including the Central Bank of Nigeria and the federal ministry of industry as well as the private sector to coordinate and foster the promotion of SMEs in the country.
Remi Babalola, immediate past minister of state for finance, made the pledge in Abuja while meeting with the executive council members of the Nigerian Association of Small and Medium Enterprises (Nasme) led by Dr. Ike Abugu, its president.
Babalola stated that SMEs are fundamental to the growth of any economy as they are the real people creating jobs, stressing that government would create incentives for SMEs and entrepreneurs in the country.
The former minister explained that government is already supporting the SMEs through the agric credit guarantee scheme and other initiatives being implemented by the Central Bank of Nigeria (CBN) and also through the Small and Medium Development Agency of Nigeria (Smedan).
Earlier, Abugu had called for a comprehensive, economy-wide and an all-embracing stimulus package for the SMEs. This, he noted, had become necessary for the SMEs to continue to encourage entrepreneurship, create wealth and jobs, and act as catalysts for technological development and innovation.
Abugu also called for the establishment of SME banks in the country to provide funding for the enterprises. He regretted that there are currently no financial institutions specializing in SMEs in Nigeria today, pointing out that deposit money banks, as they exist in Nigeria today, are not of much use to genuine SMEs that need affordable, long-term financing.
Nasme was established in 1996 by agencies of the federal government, including the Central Bank of Nigeria and the federal ministry of industry as well as the private sector to coordinate and foster the promotion of SMEs in the country.
