The Vice President Prof. Yemi Osinbajo has revealed that the federal government was committed to providing access to cheap capital to Micro, Small and Medium Enterprises, MSMEs.
Osinbajo noted that the government was collaborating with relevant stakeholders in the finance sector and other agencies to actualize easy access to capital for MSMEs.
The Vice President disclosed this at the 25th edition of the National MSME Clinic, in Asaba, the Delta State capital, on Thursday.
He stressed that MSMEs were catalysts for developing the economy. Adding that lack of access to cheap capital was the major bane of small business operators.
Osinbajo stressed the need for all Federal Government business regulatory agencies to see themselves as facilitators for the growth of small businesses before becoming commercial police for standard enforcers.
He said “We are all trying to work to see how to achieve single-digit interest rates for loans to MSMEs with a tenure of between 5 to 10 years and a repayment plan of a minimum of one year in each case.
“Without access to cheap capital, it is impossible to do what we expect MSMEs to do. This is an ongoing concern and we are open to ideas on how to bring down the interest rates.
“Let me remind Federal Government regulatory agencies that we are determined to create a Nigeria where small businesses are nurtured and encouraged to prosper.
“Nigeria is an economy driven largely by MSMEs, and it is clear that there can be no real national growth and development if we do not ensure that small business grows and develop.
“So, We strongly believe that the MSMEs are the engines of growth, and therefore committed to remove all the obstacles standing in the way of MSMEs to give them all the support.”
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He urged state governments to partner with the Federal Government to deepen the fruits of the one-stop shops and the shared facilities by ensuring that they are established within various sections of states.
Osinbajo said “We have also begun launching shared facilities across the nation, and the purpose is to provide reasonably priced assets to world-class business equipment for MSME in cluster phases.
“What this means is that MSMEs has cleared the financial burden of having to buy the equipment in order to do business. The shared facilities have been pre-certified by relevant agencies, removing the need for the MSMEs to pursue the certification.
“So by taking away the burden of acquiring, managing the equipment, the clinic intends to further catalyst the growth of MSMEs.”
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