Shareholders want improved incentives, credit for MSMEs
Capital market shareholders have identified the creation of more incentives to the Micro, Small and Medium Enterprises (MSMEs) as a viable option for the stimulation of nation’s economy.
Besides, they stressed the need for government at all levels to set aside specific sum money on fixed deposit in banks as a guarantee for the provision of credit facilities for small and medium scale industries by financial houses.
The experts argued that in addition to spurring economic growth, the move would also create employment opportunities for the restive youths, empower operators in the industry as well as stabilise the country’s nascent democracy.
They pointed out that Nigeria is endowed with human and natural resources but however noted that a good number of the citizens are living in abject poverty.
Therefore, the experts urged federal authorities to take deliberate action that would encourage MSMEs that serves as pivotal instrument of reducing abject poverty and enhancing economic growth to upgrade into manufacturing.
They added that this would enable a good number of them to expand in such a way that they can source for fund on the exchange and subsequently become listed in the nation’s bourse.
Specifically, the President of Constance shareholders Association, Shehu Makail said government must provide enabling environment for MSMEs, noting that the sector must be regarded as the bedrock of government’s economic policy at all levels.
He argued that if government at all levels explore the establishment of MSMEs in Nigeria, it would check most of the crises that have engulfed several parts of the country, which he blamed on joblessness and greed.
Furthermore, he noted that high interest rate and the fluctuating exchange rate, which characterise the country’s monetary system, is a major barrier to enhanced production output.
The National Coordinator of Standard Shareholders Association, Godwin Anono stressed the need for government to pursue vigorously, policies that would attract investment in stock market, as well as stimulate growth and funding for SMEs to make them more sustainable for listing on the Exchange.
“Also, there should be encouragement for those who want to start their businesses, especially SMEs. If they will remain the way they are, some of them would die off and if this happens, the economy will suffer.
“There should be some kind of incentives and free trading for SMEs so that they would receive trading that will enable them to perform well and keep their records.
“One major problems of this sector is that they cannot access the kind of loans that banks provide but if they are giving the required trading and exposure, they would strategise and do better and it would impact on the capital market.
An independent investor, Amaechi Egbo explained that government must initiate policies that would spur growth and funding for SMEs.
“We must continue to find foreign exchange earnings and businesses. Government should also encourage small businesses by supporting them with incentives and subsidies.
“This would help upgrade them to the level of listing in the capital market. We should also ensure that the market is organised and well regulated to attract more investments,” he added.