The Nigeria Association of Small and Medium Enterprises (NASME), Delta State Chapter, has called on both the federal and state governments to implement more targeted and effective measures to alleviate the burden of inflation on SMEs and ordinary Nigerians.
Chairman of the association, Lady Judith Nwachukwu, made the call while addressing a press conference after its General meeting held over the weekend in Warri, Delta State.
Nwachukwu, said that SMEs, as the engine room of the nation’s economic growth, is faced by multi-faceted crisis driven by sticky prices of goods and services.
She noted that the removal of fuel subsidies, exchange rate unification, and persistent insecurity in food-producing states have collectively driven up the cost of raw materials and others.
According to her, SME sector is vital to achieving the nation’s “Renewed Hope Agenda” , calling on both federal and state governments to renewed commitment to the growth and development of SMEs in the country.
“As the engine room of economic growth and a significant employer of labor,
while we acknowledge the government’s efforts to stabilize the economy and implement reforms, the current reality on the ground for our members is one of escalating production costs, diminished profit margins, and a significant drop in consumer demand.
“Our members, the backbone of Nigeria’s economy, are battling a multi-faceted crisis. This makes it increasingly challenging for SMEs to remain competitive and even to simply keep their doors open.”
She called for a transparent and accessible disbursement mechanism for the various SME intervention funds, adding that the conditions for accessing these loans must be made more flexible, moving away from commercial bank standards that many SMEs cannot meet, to truly impact the sector.
Nwachukwu, however applauded President Bola Tinubu’s administration for recognizing the pivotal role of SMEs in driving sustainable economic growth, job creation, and poverty reduction.
“The various policy initiatives, including tax reforms that raise the exemption threshold for small businesses, the ‘Nigeria First’ policy promoting local content, and efforts to improve access to finance, are indeed steps in the right direction” she said.
She commended the Delta State Government’s approval of a N1 billion revolving fund for MSMEs, to be managed by the Bank of Industry at a single-digit interest rate.
“We expressed thanks to the state government for this huge intervention which has shown a clear understanding of the financial challenges faced by our members.
“We commend Governor Sheriff Oborevwori for this proactive step and urge for its swift and transparent implementation to ensure maximum impact for our members and Delta SMEs”.
While explaining the benefits of being a member of NASME, Lady Nwachukwu, thanked the Bank of Industry, (BoI) which recently approved several loan applications for her members, saying “we hope they facilitate the process seamlessly and ensure our members get the actual loans to boost their businesses”.
The meeting saw the formal unveiling of the NASME Delta Multipurpose Cooperative Society headed by Sir Hilary Ikem who doubled as the Public Relation Officer of the association.
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