How government can eliminate bureaucracy, increase SME funding

Participants at the second edition of the Export to the U.S. Series, a breakfast meeting of the Nigerian- American Chamber of Commerce held in Lagos have stressed the need for government to minimise bureaucracy and bottlenecks associated with the export of finished goods by local firms, especially the Small and Medium Enterprises (SMEs).

They said that the provision of specialised intervention funds through credit guarantee schemes is needed to de-risk manufacturers and boost SMEs.

According to them, the country can only fast-track the development of the non-oil sector by creating an enabling environment, strengthening the power of export agencies like the Nigerian Export Promotion Council (NEPC) as well as increasing monitoring and evaluation processes.

Speaking on the theme ‘Export to the U.S. Series, Financing Options for Export Operations’, they also identified weak institutions as the bane of nation’s diversification drive, noting that strong institutions would help to accelerate the diversification of the economic base, mitigate uncertainties, set boundaries and fast track developmental programmes.

Latest reports by the Nigerian- Export Promotion Council (NEPC) revealed that Nigeria’s non-oil exports grew by 39.91 per cent in 2022 to $4.820 billion, the highest since the establishment of the NEPC close to 50 years ago.

To consolidate on the performance, the Chief Executive Officer, FOB Global Logistics, Oluwajimi Jimmy Adebakin, said there is a need for government to provide freight incentives and ensure that the barriers to the cost of freights are neautralised.

He also called for the creation of a single window for the repatriation of foreign exchange. He said: “You cannot borrow at 25 to 30 per cent to facilitate your export trade and when you want to repatriate your funds, the apex bank is asking you to repatriate your funds at its exchange rate with the much differential between the parallel market rate and their own CBN rate.

“We are hoping that the incoming administration will democratise that space and have only one window so that if I export and l am bringing back export proceeds, I will get it at the parallel foreign exchange market,” he said.

Vice President of the Chamber, Emmanuel Efuntayo, said institutional frameworks of various governmental agencies must be strengthened and reforms instituted where necessary so that intervention measures would get to the appropriate beneficiaries through the right channels.

He urged the incoming administration to build institutions and institute friendly reforms that would put into consideration the various changes in the business environment.

He called for more collaboration among regulatory authorities to boost sanity in the export procedures and create a more-friendly environment for the private sector to operate.

Regional Coordinator, South West Regional Office, NEPC, Akintunde Folorunso, said the council has earmarked an N365 billion export expansion grant for exporters that have succeeded in repatriating their funds into the country.

According to him, the fund would serve as a buffer to mitigate the high cost of business operations in Nigeria. Earlier, the President of the Chamber, Dame Adebola Williams, said America has the largest consumer market, with more than 330 million people and a gross domestic product of over $20 trillion.

Director of Communications, Government Relations/Advocacy/Programmes, Nigerian-American Chamber of Commerce, Wofai Samuel, said a lot of financing institutions have opportunities that SMEs and large enterprises could explore to increase export trade and revenue.