The Nigerian Association of Small and Medium Enterprises (NASME) says that accessing MSMEs finance is becoming increasingly difficult despite that more funds are currently sitting in the banks now than before.
The association urges the country to provide cheap funds to small business owners across the country, urging the federal government to finalise logistics around the Development Bank of Nigeria to enable entrepreneurs realise their potential.
Eke Ubiji, executive secretary, NASME, made this known to journalists at a press briefing held in Lagos recently.
“There are lots of funds available now for MSMEs but the conditions to access them are too stringent,” Ubiji said.
The executive secretary urged the government to reduce some of these conditions so that MSMEs can easily access funds from development financial institutions.
Ubiji stated that funding has hindered the development of MSMEs in the country.
“A lot of our members have shut down their businesses due to the combination of challenges they face, which is making it difficult for them to be competitive,” he said.
“With the MPR at 14 percent, it is difficult for MSMEs to survive with loans from commercial banks. Also, the infrastructural deficit is still huge and these are some of the issues we will look at when we talk about the ease of doing business,” the executive secretary added.
“If we really want to attain what is stated in the economic growth recovery policy document, we still have to intensify our efforts as a country,” Ubiji said.