NASSI Counsels MSMEs On Access To Funds
The business community in Nigeria has been faced by funding issues where they do not have access to cheap loans. The government needs to assist the MSMEs more and most of these companies are producing obsolete machines, making them uncompetitive, because the external look Nigerian goods are loved at the international market.
Punch reports, The Nigerian Association of Small Scale Industrialists has advised Micro Small and Medium Enterprises to register with trade groups to get access to funds for their businesses.
The immediate past Chairman, NASSI, Segun Kuti-George, explained that financial institutions were only open to support credible trade groups rather than individuals.
Kuti-George gave this advice at a press conference to announce the upcoming 4th NASSI MSME trade fair in Lagos.
He said the N75bn MSME survival fund was laudable, but was inadequate to meet the needs of over 200 million population in the country.
“We are encouraging many members as possible to form groups. Funding is accessed much more easily when there is a group and there is a leader. There are grants and loans coming out for different groups and they are at very low interest rates.”
Kuti-George called on the Federal Government to encourage local producers by creating an enabling environment for the business community, as this was the only way Nigerian goods would compete with other products when the African Continental Free Trade Agreement area commences.
He added that the position of the Organised Private Sector had been that Nigerian businesses were not ready, due to fears that the trade deal would put Nigerian products at a disadvantage position where Nigerian markets would be flooded by products from other countries that are ready.
He said, “If this happens, Nigerian products will suffer and most businesses would collapse. For example 50 per cent of our agric products do not make it to the market because they get wasted.
He added, “Instead of complaining about the border closure, we will be preparing ourselves and when the issues being raised are resolved and AfCFTA kicks off, we will be ready.
“If we are going to participate in an international trade, the borders will have to be opened because it is a necessity.”
He said the objectives of the fair was to give access to knowledge through capacity building, access to funding through co-operative and intervention with various financial institutions, access to market through organising trade fairs and attending exhibitions of other organisations.
The fair tagged “African Continental Free Trade Agreement: Taking African trade by storm,” he added, was a response to the need for market access for its members numerous products and services.
Source: https://punchng.com/nassi-counsels-msmes-on-access-to-fund/
