The Micro, Small and Medium Enterprises Forum (MSMEs Forum), the umbrella body for all MSMEs registered associations in Nigeria, has announced its intention to set up an MSME Bank to fund their needs.
Dr Olajide Akinyemi, the Chairman, Board of Trustees of the MSME Forum revealed this in Abuja on Thursday at the formal inauguration of the Forum.
Akinyemi noted that in spite of the huge economic potential of the MSMEs sector in Nigeria, the sector is still largely underdeveloped and under-leveraged. He said the establishment of the bank is a core agenda of the 5-year strategic plan.
“We are also pushing for the establishment of MSMEs Bank. Funding is a big problem to MSMEs because a majority of them lack management capabilities. But if we set up our own bank, we know what the challenges are and we will be able to fund, regulate and grow MSMEs in Nigeria. We plan that the bank will be the biggest in Africa” he said.
He recognized the steps made by the government and other organizations to promote the MSME. He claimed that the reason these policies haven’t taken off is that people don’t fully comprehend the unique characteristics of MSMEs and the disorganized nature of MSMEs in Nigeria.
“We have about 40 million MSMEs and they are wallowing in poverty because we fail to understand the contribution of the sector to the economy. The policies of the government, though good and robust, their impacts haven’t been felt because the sector is not organised. They fail to come together and speak with one voice,” he said.
Dr. Akinyemi further disclosed that each MSME, including local governments, will be aware of the five-year strategic plan and will be able to have an impact on government policy. Additionally, he stated that grassroots efforts will be made to address the MSMEs’ unique characteristics.
He stated that there are more than 165 MSMEs associations registered with the MSMEs Forum when discussing its membership. Some MSMEs associations, he continued, have more than 5 million members.
