Ogbeh canvasses support for SMEs to grow Nigeria’s economy

For small and medium enterprises (SMEs) in Nigeria to grow and be sustainable, a sound technological base must be provided to discourage heavy reliance on imported technology, Audu Ogbeh, minister of Agriculture and Rural Development, says.

He also advised local entrepreneurs to take advantage of present growth and rising profitability of the agricultural sector, by investing in agricultural machines, so as to partner with the agricultural sector in economic diversification drive.

Ogbeh, in his remarks at the 3rd Abia Small and Medium Enterprises (SME) Forum, held in Aba, the commercial hub of Abia State, noted that Nigeria must look inwards to harness its available talents and potentials, to revamp the economy, using the small and medium enterprises (SMEs).

Represented by Nnamdi Ibeziem, acting regional director, South-East zone of the ministry, the Agriculture Minister observed that a weak SME cannot deliver the expectations of the present economic environment, noting that poor access to finance, resource constraints, lack of high caliber staff and lack of requisite skills are constraints to SME growth.

He stated that restricted market, multiple taxation, unfavourable government policies, such as import liberalization, high interest rate and inadequate infrastructural facilities-roads, water and epileptic power supply, also weaken SME performance.

He recalled that many policies and programmes were put in place to develop SMEs in the past, noting that 1980s marked the golden years of SMEs in Nigeria with the establishment of Nigeria Industrial Development Bank (NIDB) and Nigerian Bank for Commerce and Industry (NBCI).

These banks according to him provided foreign exchange and soft loans to SMEs.

Other interventions programmes put in place during that era according to Ogbeh, include the establishment of Small Scale Industries Credit Scheme in early 70s by the Federal Ministry of Industries, Industrial Development Centres, 1970, Raw materials Research Development Council (RMRDC) in 1988, among others.

He however regretted that despite these laudable efforts that Nigeria’s SME sector is still fraught with averagely low productivity, managerial deficiencies, reduced contribution to the economy and general high business failures.