Stakeholders support establishment of National Enterprise Development Fund

Stakeholders, drawn from the Micro, Small and Medium Scale Enterprises (MSMEs), regulatory institutions and lawmakers on Wednesday, expressed support for the establishment of National Enterprises Development Fund (NEDFUND).

This is sequel to proposal contained in the bill that seeks to repeal the Small and Medium Scale Industries Development Agency (Establishment) and re-enact the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Act sponsored by Ossai Nicholas Ossai, chairman, House Committee on Ethics and Privileges.

According to Ossai, the funding for the Enterprise Fund is to be sourced from 0.25 percent profit before tax of large enterprises with a turnover above N500 million; 1 percent levy on all imports except rice, sugar, automobile and all non-tax chargeable items; 5 percent of all unclaimed dividends from all Nigerian banks; 5 percent from registration fees of all MSMEs and 5 percent on all luxury goods/items and such other monies as grants, donations, budgetary appropriations, Federal Government bonds, among others.

“This fund shall be dedicated to the specific needs of MSMEs and the fund is to be managed and administered by a Fund Trustee known as National Enterprises Development Fund Trust,” the lawmaker said.

Some of the benefits of the Fund include: provision of fund to rural dwellers, which in turn will develop local technology and stimulate indigenous entrepreneurship, thereby raising the living standard of rural dwellers, reduce rural-urban migration and overdependence on government and large firms on salaried employment e.g, the telecoms and education sectors.

In his presentation, Degun Agboade, NASME president, who called for review of the MSMEs policies on timely basis, emphasised the need for a “one-stop centre which may be established in every state or in the six geopolitical zones,” adding that such initiative would help to “reduce the stress of regulatory compliance among MSMEs.

“The specific regulatory bodies to be covered by SMEDAN can be expanded from time to time via regulations issued by the director-general.”

In his remark, Dikko Radda, SMEDAN director-general, who supported the proposed amendments, argued that the agency had continued to make remarkable impacts in the areas of information, delivery of business development service (comprising capacity building, mentoring, counselling, advisory services, monitoring and evaluation and impact assessment), promotion of enterprise networking and cluster information.

He added that the proposed amendment of Section 6(2d) seeks to include Central Bank of Nigeria (CBN) and NASME as members of the SMEDAN governing council.

According to the sponsor of the second bill, Baba Kaita, the bill seeks to amend the SMEDAN Act 2004, with the view to expressly provide the agency with the powers to protect artisans, market women and traders and to organise them into clusters for optimum benefits and for other related matters