ICA report seeks tax incentives, others for SMEs growth

The Institute of Credit Administration (ICA) has recommended that the Federal Government should make a strong and emphatic policy statement for all government agencies, multinationals and blue chip companies operating in Nigeria to pay small businesses within 14 days of receiving a correctly rendered invoice for goods or services provided as a way of boosting the growth of Small and Medium Enterprises (SMEs).

It stated this in its blue print report for growth, development and sustainability of micro, small, medium-size enterprise sector released at the weekend in Lagos.

Besides, it urged government to provide support to the SMEs through tax incentives and single digit interest rate.
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Registrar/CEO of the Institute, Prof. Chris Onalo, said that the public credit guarantee scheme was government’s intervention to unlock finances for MSMEs towards economic development.

“In terms of single digits loans, many MSMEs contend with several economic factors while running their ventures. Because of the scale and wherewithal of the MSMEs, these factors have significantly impacted on their profitability. The ICA blue print report canvasses for the support of Central Bank of Nigeria (CBN) in conjunction with the developmental banks to create more sector specific funds, which MSMEs can access at single digit and without so much difficulties or strenuous conditions,” he stated.