Oyo govt speaks on MSMEs’ importance to national economy

The Oyo State Government has pledged it's support for the Micro, Small and Medium Enterprises (MSMEs) sector owing to its significant contribution to the national economy.

Governor Abiola Ajimobi made the pledge yesterday, at the opening of the 17th National summit of the Micro, Small and Medium Enterprises (MSMEs) in Ibadan, Oyo State capital.

The governor, represented by his deputy, Otunba Moses Adeyemo stated: "As individual units, MSMEs may be small, but together they account for up to 50 percent of Gross Domestic Product (GDP) and over 80 percent of the labour force. It therefore follows that they are of decisive importance in the national economy."

"MSMEs have tended to be neglected in this country over the years. This is partly as a result of competing priorities and a tendency to discount their contribution to the national economy," the governor said.

The Special Assistant to the Vice President on SMEs, Mr. Tola Johnson in his remark noted that  the MSME clinics were designed to bring the regulatory agencies whose work affects the business experience of MSMEs closer to them.

He said, this would enable MSMEs to bring their business related problems to regulatory agencies for solution outside the formal and sometimes intimidating offices of these agencies.

"Of course, having all the agencies in one location at the same time saves MSMEs the travel time and cost of going to different agencies."

"MSME Clinics have also enabled regulatory agencies to gain a better understanding of the difficulties that MSMEs face and caused them to take steps to remedy the situation where required."

"For instance, several agencies have reduced the cost and timelines for service delivery to MSMEs. Since the launch of this programme last year, it has been easier for small businesses to access funds, because the Bank of Industry (BoI), Development Bank of Nigeria (DBN) and NEXIM Bank have used it to expose their products and increase their loans to MSMEs."

“NAFDAC has made it easier to do business, by reducing the cost and waiting time for product registration for small businesses. What used to take 8 months now takes 3 months."

"On his own part,The Corporate Affairs Commission (CAC) now registers businesses within 48 hours and also carries out registration during the Clinics at reduced prices."