As the nation searches for how to boost its economic growth and job creation, the Group Managing Director/Chief Executive of Union Bank of Nigeria Plc, Mrs Funke Osibodu has called on the Federal Government to comprehensively address the structural, infrastructural and environmental problems of the Small and Medium Enterprises (SMEs) sector in the area of funding.

She made this call at the 6th NASME Board of Trustees Meeting held at Union bank of Nigeria Plc recently.

She said although successive government has over the years come up with various intervention funds to support the sector the success level has been minimal.

According to her Nigeria’s SME sector is still regarded as high risk by financial institutions and investors due to the high rate of death of SME projects. The Union bank boss attributed this to the pitfalls associated with schemes such as NERFUND, SMEEIS, and SMECGS which emphasized primarily on the provision of funds for which structural, infrastructural and environmental constraints were not comprehensively addressed.

The sector, she said, is still bogged down with deteriorating macro-economic and environmental problems like unstable inflation, price volatility, uncertainty of demand; inadequate fiscal incentive and framework, unstable and adverse policies, legal framework and taxes, restricted access to credit facilities for upgrade technology, among others.

Mrs Osibodu observed that some of these problems are inherent in the very characteristics of small business and start-ups; others are a direct outcome of economic changes which may affect the SMEs in a more critical manner than the big businesses.

Mrs. Osibodu said that the new Jonathan administration should create a more supportive business environment that is suitable for establishing and developing SMEs in Nigeria.