A financial consultant, Mr. Christian Wessels, has advised the Federal Government to increase funding of Small and Medium Enterprises (SMEs).

He said in Lagos that this would act as catalyst for the growth of the productive sector. Wessels advised that government should aid entrepreneurs by giving them unhindered access to investable funds. He said that government should focus more on promoting SMEs as a way of improving the nation’s Gross Domestic Product (GDP).

“These entrepreneurs need government’s support by way of cheap credit facilities to grow their businesses,’’ Wessels, who is a Partner at Roland Berger Strategy Consultant, said. He said that small -scale firms played important roles in fostering economic growth, boosting employment generation, and facilitating scientific and technological innovation as well as maintaining social stability. In the face of the uncertainty in the market and Many SMEs have been forced to turn to the high-interest money market.

“Often, getting loans from banks is always difficult with the effect of rising inflationary trend and government policy of tightening measures on lending which put pressure on investment in the real productive sector,’’ he said. Wessels, however, predicted that Nigeria’s energy sector would improve in the next five years through the combined efforts of the government and private institutions.

“2012 is a year of dramatic economic and social challenges,’’ he said.

He said that his company focused on ways debts, welfare issues, energy supply and changes in the demography would affect the global economy.