The Role Of Credit Bureaus In Increasing Access To Finance For Micro, Small and Medium Enterprises

CBAN-NASME Fact SheetThe role of entrepreneurs and entrepreneurship is vital to any economy, with its benefits including job creation, increased productivity, increased revenue, wealth creation and inclusive growth.  In many developing economies, Micro, Small and Medium Enterprises (MSMEs) account for the larger majority of businesses in the country with significant reliance on them for economic growth. Despite their strategic position and role in the economy, access to Finance has continued to constitute a major challenge. In advanced economies, Credit Bureaus help consumers and small businesses obtain financing by offering timely, credible and objective information on borrowers, allowing financial institutions reduce loan processing time and cost by 25% or more, while equally cutting default rates by 40%-80%. These savings, no doubt, can mean lower interest rates, making credit more affordable and available to those in need. In line with its vision of "Credit information for wealth creation" the Credit Bureau Association of Nigeria (CBAN) in collaboration with Nigeria Association of Small and Medium Enterprises (NASME) organised a one-day  Public-Private Dialogue (PPD) on The Role of Credit Bureaus In Increasing Access To Finance For Micro, Small and Medium Enterprises in Nigeria.  

SMEs: The Solution To Unemployment In Nigeria

Youths In Search Of A Decent Job With Nigerian Immigration Service (NIS) At The National Stadium, Surulere, Lagos

  FACT: “Unemployment rate is 24% with youth unemployment accounting for 38% of total unemployment.”   MYTH“We have about 17 million registered SMEs, and they employ over 32 million Nigerians.”   Background NOIPolls has been evaluating opinions of Nigerians on the most important issues that need to be addressed. In the last eight polls over the seven-year period, the results have revealed the top issue for policy focus to be “Job Creation. This cannot be overemphasized especially with the unfortunate deaths of about 7 - 18 youths nationwide (actual number to be confirmed) in search for a decent job at the Nigerian Immigration Service (NIS) on Saturday 15 March 2014. It was estimated that at least 520,000 youths registered with N1,000 application fee with the hope of getting a position out of the about 5,000 job openings declared by NIS. In all of this, the International Monetary Fund (IMF) is predicting Nigeria’s Gross Domestic Product (GDP) to grow at 7.3% this year while inflation will continue its downward path to 7%? Why is job creation still an issue? The answer: Headline economic growth is not enough. Inclusive growth that meets the expectations of citizens (at all levels) is needed more than ever before. From experience, the only way to achieve job creation and inclusive growth is by tapping into the many innovations of the private sector, particularly Small and Medium Enterprises (SMEs). An army of about 50 million SMEs creating about 500 million jobs between 1980 and 2012 led the Chinese economic miracle. However, against international best practices Nigeria is rated poorly. For Nigeria to sustainably create jobs and forge inclusive growth, the solution is the robust growth and scaling of SMEs. I am burdened when we I read or hear quotes about SMEs from both public and private authorities - “We have about 17 million registered SMEs, and they employ over 32 million Nigerians.”  This is a myth and the following data proves this.  

SMEs At The Heart Of Inclusive Growth and Job Creation

channels logoNigeria has been selected to host the 24th edition of the World Economic Forum on Africa (WEF) between 7 – 9 May 2014 in Abuja with the theme – Forging Inclusive Growth, Creating Jobs We need economic growth to pay for the things we need in life – education, health, housing, roads. But how to ensure that growth benefits everyone, without further widening inequality and exclusion? Headline economic growth is not enough. Deliberate policies to reduce inequalities and promote inclusion are now needed more than ever before. Inclusive Growth refers both to the pace and pattern of growth, which are interlinked and must be addressed together. Rapid pace of growth is unquestionably necessary for substantial poverty reduction, but for this growth to be sustainable in the long run, it should be broad-based across sectors, and inclusive of the large part of a country’s labour force.  

W-HBS Chairman Tackles The Pharmaceutical Industry Challenges

The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) recently kicked against plans by the Federal Government to import anti-retroviral drugs worth over N1 billion. Chairman of the PMG-MAN, Bunmi Olaopa, and the body’s Executive Secretary, Olakunle Okelola in a report they made available to newsmen in Lagos, lamented that Nigerian pharmaceutical manufacturers had the capacity to produce such drugs - ampicillin capsules/powder; amoxillin capsules/powder; clorpheniramine tablets/syrup; abscorbic acid/syrup; tetracyline capsules; ibuprofen tablet/syrup; dextrose, etc.  

NACCIMA Reviews Government Intervention Funds

Following complaints about lapses observed in the operations of the various intervention funds floated by the Federal Government in its bid to stimulate economic growth in some sectors in the last three years, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), in collaboration with Enhancing Nigerian Advocacy for a Better Business Environment (ENABLE), held a dialogue aimed at assessing the performance and prospects of the funds. The dialogue was coordinated by Olanrewaju Oniyitan. The dialogue was held on Tuesday 31st July, 2012 at the Sheraton Hotel & Towers, Ikeja, Lagos.