Dantata advocates inclusive financial support for MSMEs to grow GDP

An industrialist Alh. Tajudeen Dantata has advocated inclusive financing support for Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria to sustain the nation’s Gross Domestic Product (GDP).

Besides, the business manager worried that despite the large contribution of MSMEs to the economic space value, the entrepreneurs get little or no support to expand their businesses.

Dantata joined other business managers at the second edition of the MSMEs summit organised by the Development Bank of Nigeria (DBN) to address challenges bedevilling MSMEs in Kano.

The Chairman, Dantata Foods, pointed out that MSMEs operate in a hostile economic environment with challenges of multiple taxations, lack of infrastructure and over dependant on importation.

He noted that government policy inconsistency, unavailability of local materials and high-interest rates on credit facilities among other critical factors militate against the survival of MSMEs in Nigeria.

In his keynote address titled ‘Role of DBN in inclusive financing’, Dantata called for maximum scale down of bottlenecks and protocols from accessing the facility. He urged the DBN to complement the N220 billion intervention of the Central Bank of Nigeria (CBN) to support MSMEs in the country.

“According to data made available by the Federal Ministry of Trade and Investment, Nigeria has 37 million drivers of MSMEs. This category provides 88 per cent total job opportunities and contributes 48 per cent to our GDP.

” Unfortunately, despite this contribution to our economy, they are lacking funding to expand their businesses while many startups find it difficult to grow due to lack of support from government and bottlenecks from financial institutions. I hope DBN will provide much-needed support and leadership role to ensure inclusive financing to this key player of the economy,” Dantata said.

On his part, Governor Abdullahi Umar Ganduje disclosed that with commercial and industrial viability running into $ 12 billion, Kano is prepared to partner with DBN to expand MSMEs in the state.

Ganduje, who was represented by the Chief of Staff to the Governor, Alh. Usman Bala emphasised that the government established Investment Promotion Agency to enhance business opportunities through intervention from development agencies.

Managing Director, DBN, Dr Tony Okpanachi, explained that the institution was established by the Federal Government in collaboration with development partners to address major financing challenges facing MSMEs in Nigeria.

Okpanachi stressed that the Kano MSMEs summit was intended to galvanise key stakeholders in the ecosystem within the region, to take advantage of the DBN platform to scale their businesses.

The event also aimed to upskill business owners with knowledge on how to access reliable financing and interact with entrepreneurs in a bid to provide solutions to their challenges.