Govt to appraise intervention funds’ performance

•Mulls regulations to aid venture capitalists, private equity investors’ activities

WORRIED by growing concerns on inability of small businesses to access various intervention funds created by the Federal Government,  Minister of Industry, Trade and Investment, Olusegun Aganga, has unveiled plans by government to appraise such funds and their managers with a view to facilitating improved access.

   Besides, the Minister disclosed that there are efforts by the government to initiate regulations that would foster activities of private equity investors and venture capitalists in the real sector.

  Aganga disclosed these initiatives in Lagos at a live Fidelity Bank SME Forum on Inspiration FM monitored by The Guardian.

  He said his ministry has identified key barriers to growth of SMEs,  adding that in a bid to tackle the issue of fund, the Ministry has taken stock of the entire intervention funds in the country and put them together so they can be used well and also to understand why they are not easily accessed by SMEs, adding that the World Bank was working with it on the same report.

   “Another example is the N200 billion Central Bank of Nigeria (CBN) intervention fund; we realised that the commercial banks were not getting enough of it and we knew that it wasn’t reaching the micros enough. And so, we worked with the CBN to make the fund easily accessed by the commercial banks and micros. We have made adjustments to it and already, there have been

increased access to the fund presently,” the Minister explained.

   Aganga added that government is exploring regulations that would make it easier for private equity investors and venture capitalists operate effectively in the real sector.

  He further expressed government ‘s commitment towards reviving industrial parks for SMEs.

   He said: “Today, the 23 IDCs we have are doing nothing and the President has

proposed we convert each of them into Micro, Small and Medium scale Enterprises (MSMEs) parks in the country. We are working with World Bank on that.”

   He noted that World Bank agencies will train MSMEs owners especially the youths and women to ensure they are capable in the areas of ICT, building, woodwork and other areas to be competent in what they doing.

  “When they are fully trained, they would be brought to the park where they can work for at least one year before being allowed to move out. So, if we are allowed to continue with this work, in four years time, there will be a complete change in this sector.”

   He however commended Fidelity Bank’s initiative in addressing the financial needs of Abia Industrial cluster.

  The Minister stated that the government has identified seven barriers to growth of SMEs in the country to include access to affordable finance, cost of doing

business, access to market and linking innovation to SMEs and training requirements, among others.

    He explained: “For the first time, we are treating SMEs as a sector. We have new a programme known as New National Enterprise Development Programme, which aims to remove all the barriers to enable businesses grow. For the first time also we have risen to the highest level. We have an SMEs National Council.       There is a Chairman, there is the President, state governors, Ministers and agencies under the council.”

    Aganga added that the whole idea was to accelerate the growth of the sector, harmonise and have better coordination and institutionalise the support given to

the sector.

The Minister acknowledged that easy access to fund was one of the biggest barriers to MSMEs, noting that only about 8 per cent of the business have access to finance from recognised institutions.

    “Most of them rely on savings, family and friends, which is not good

enough for a country where 32 million people operate as small and medium scale entrepreneurs. You are not going to have inclusive economic growth if you don’t make finance easily affordable to these people,” he said.