The African Association for Small and Medium Enterprises (AASME) Council has passionately called upon President Bola Tinubu to take immediate action in creating a conducive environment for the unorganized private sector to flourish alongside its counterparts in other regions. The Council further advised that a minimum of 30 percent of the annual federal government budgetary proposals should be allocated to the sector, ensuring adequate funds reach the end users.
Darlington Kalu, the President of AASMES, made this earnest appeal during the World-African MSMEs knowledge hub in Aba, Abia State. He expressed deep regret that over the years, funds meant as loans and grants for SMEs have been diverted by politicians, depriving small-scale entrepreneurs and artisans of vital financial support to grow and develop their businesses. Despite contributing over 95 percent to the nation’s workforce and acting as crucial raw materials providers, the SMEs continue to struggle in accessing much-needed loans.
Kalu highlighted a series of challenges faced by the SME community, exacerbating the existing economic difficulties experienced during the immediate past administration of Muhammadu Buhari. The combined impact of events such as the COVID-19 pandemic in 2019/2020, the October 2020 #EndSARS protests, the 2021-2023 currency redesign, ongoing insecurity, and the 2023 elections have all significantly hampered business activities, particularly for MSMEs. Additionally, the removal of fuel subsidies without corresponding palliatives led to soaring inflation, further straining small business owners.
The AASME Council urgently calls for the settlement of funds owed to the group by the federal, state, and local governments across the country. The disbursement of these grants and loans to MSMEs will be instrumental in rehabilitating and revitalizing the productive sector of the national economy.
Kalu raised concerns about the misallocation of funds earmarked for the MSMEs sub-sectors, with politicians diverting these resources for personal gain. He urges the present administration to proactively address this issue and ensure that the designated funds reach the deserving MSMEs.
Moreover, the Council expressed concern over the deteriorating state of public infrastructure that affects the quality of life for many citizens. The privatization of the energy sector, in particular, has been a point of contention, as inexperienced entities were handed control, leading to operational inefficiencies.
In light of these pressing issues, the African SME community urges President Tinubu to prioritize the creation of an enabling environment that fosters growth, innovation, and sustainability for MSMEs across the nation. By addressing these challenges and implementing appropriate policies, Nigeria can unlock the full potential of its vibrant and vital SME sector, driving the nation’s economic development to new heights.
