LCCI urges government to address SMEs’ challenges

The Lagos Chamber of Commerce and Industry (LCCI) has urged the Federal Government to go beyond financial interventions to Micro, Small and Medium Enterprises (MSMEs) and provide infrastructure for businesses to thrive.

Toki Mabogunje, vice president of the chamber, made the call in an interview with the News Agency of Nigeria on Wednesday in Lagos.

Mabogunje said the challenges of the nation’s economy had made it imperative for the government to provide critical structures to facilitate sustainable growth of MSMEs, and make them internationally competitive.

According to her, there are greater challenges beyond funds confronting the MSMEs.

She identified the needed infrastructure as power, road, potable water and effective mass transportation system, saying that power deficit increased operational cost of enterprises, reduced their production capacities, made Nigerian goods uncompetitive and contributed to the ailing of local industries.

“Roads are required to get goods to market; year- on-year, our agricultural produce waste and rot in the villages due to the poor conditions or lack of good roads. Potable water is needed for any aspect of human life, not to talk of business. Imagine how the lack of these precious inputs affects industries, whether micro, small, medium or large,” she said.

The chamber chairman said that there was a great need for mass transportation, saying poor infrastructure for the conveyance of cargo had stunted the growth of MSMEs and limited their opportunities.

She urged commercial banks to practice true bank- ing by making access to funds easy for SME operators, as “there is the missing middle in financing of MSMEs. These are small and medium-size businesses that should be able to access the financial services that they require to grow through their banks.