Monday, April 26, 2021/ 10.00AM / Ottoabasi Abasiekong for WebTV / Header Image Credit: Twitter; @SeyeOlurotimi
The revised policy of the Federal Government on the Micro, Small and Medium Enterprises (MSME) is a welcome development and should lead to improved targeted interventions. Mr. Seye Olurotimi the Founder/President MSME Africa made this point in a recent conversation on policy steps designed to improve the activities of MSMEs in Nigeria.
According to him a 2018 survey carried out by the National Bureau of Statistics (NBS) in collaboration with the Small and Medium Enterprise Development Agency in Nigeria (SMEDAN) revealed that there were 41.5m MSMEs in the country.
The interesting fact was that 90% of the MSMEs were in the micro-enterprises category, which informed the need for a strategic approach in interventions.
He lauded the new categorization which now includes Nano/Homestead in the ecosystem of the Micro, Small, Medium and Large Enterprises.
Speaking further he tasked Nigerian Microfinance banks on increasing support for the newly classified Nano enterprises with turnovers between N1 to N3million.
Olurotimi stressed the fact that MFBs must refocus their efforts on supporting small businesses, which will have a positive impact on the economy. He said that it was time for real-time interventions that will make a huge impact on the informal sector and translate to economic development.
Looking at the Company Income Tax (CIT) waiver and incentive for businesses tied to turnover not asset base, he believed the Federal Government was protecting it's interest and driving transparency. He pointed out that using turnover instead of assets, will achieve objectivity and track the inflows and value of businesses.
For the opportunities, he was of the view that amidst the impact of COVID-19 MSMEs could explore the following segments of the economy ;