By Moses Nosike

Taiwo Agboola, is one of the young Nigerians who started early among his equals. A young entrepreneur with an outstanding impact in the marketing communication, providing all forms of marketing communication through his company. He uses other aspect of his business, digital media to provide online solutions to as many clients as possible. He is the Chief Operating Officer, 7interactive Limited. In this interview with Moses Nosike, Agboola said, SMEs, entrepreneurs are facing hurdles transacting business in Nigeria for lack of infrastructural development and finance. Excerpts:

With your experience in business operation in Nigeria, what are major setbacks?
It is clear and open to every business concern in Nigeria that over the years, the issue of infrastructure has been a major challenge to business operation in Nigeria. Apart from the epileptic power supply that has forced many business operations to close down, and with the remaining spending huge sums to buy diesel to power their operation. You also pay workers’ salaries and they in turn use it to provide various level of needs for themselves because if they are not happy, the company would not move forward.
Economic policies also affect our business. We have clients and suppliers outside the country, and it has been a huge challenge meeting financial obligations in dollars. The CBN FOREX policy has had a huge albeit negative impact on some of our business transactions. We have had to wait for weeks/ months to get FOREX to settle some obligations. Those are some of the issues facing business operations in Nigeria. Whenever government pronounced a policy, it has either positive or adverse effects on business in the country.

On infrastructure and power, what is your advice to Mr President?
First, there seems to have been some improvement in the past weeks. I know we have had constant power for two weeks now, and I hope it continues. So we have reduced running cost. I also read in the papers of a purported ‘emergency’ bill to be forwarded to the National Assembly by the President, in order to re-jig the economy. The truth of the matter is that if we take a holistic look at business here, you would discover that nothing is happening, and we all are clamouring for foreign investors to invest here. How can they come when our airports are eye sore? they go through hell to get visa. I think the President and National Assembly need to come to terms with the reality that things are very difficult in the country now. Both the President and the National Assembly should harmonize and discuss ultimately in order to shore things up in the economy. The situation in the country requires urgent attention, it is affecting everything and Nigerians are not finding it easy to live.

Are you attributing low development of vocational centre/ SMEs for reason of unemployment in the country?
I believe this is a reflection of the decline in the system. Growing up, there used to be a lot of emphasis on vocational studies. I believe the idea then was to inculcate in us that not all will be suited for a white-collar job. There were several vocational schools in and around the country, teaching students one vocation or the other. I can recall the Federal Technical College, Yaba those years. Now I don’t know what happened to that school. We’ve read of countries like China and some other countries with less emphasis on paper qualification. In our own case, we don’t have good technical schools these days where people can acquire skills for self-employment. Again, most of our youths are not ready to take time and learn skills. Today there is dearth of artisans in the country. In Lagos, you have to bring people from Cotonou even the Chinese are picking some of these jobs. It’s a high time we restored our vocational trainings, schools and centres to their old, glorious heights. So, from primary to secondary schools we need to tell our children that it’s not only paper qualifications but if they acquire skills it will help them in life.
Again, SME financing is another challenge because most banks in this country would rather support Oil & Gas, construction industries. The interest rate offering to SMEs is high and unaffordable. There are just a couple of support for SMEs. So it’s important we address the issue of financing SMEs.
Lack of basic infrastructure also affects SMEs. If they are assured of power supply, the cost of their operations would reduce and business will grow. Again, we need to buy Nigerian products. Patronise SMEs for them to grow. Most of us patronise foreign made goods instead of home made goods.

FG has agreed to give a tax rebate to SMEs, how do you see that development?
If it’s carried out, it will go along way developing SMEs in the country. Tax rebate will help them have more money to plunge into their businesses. It would reduce some stress in their operation. Before now, SMEs are weighed down because of multiple taxation, but if this decision is implemented, it’s a win, win for all.

Bank of Industry has been sponsoring community projects, youth empowerment, SMEs in the country, what is your take on this?
It’s an interesting initiative, but we need to do more. This kind of projects and empowerment need more awareness. Most people are not aware of these empowerment efforts of the BoI. There ought to be communication strategy to drive awareness for such a laudable programmes so that people can ask questions on how they can be part of it. BoI should partner SMEDAN (if not already doing so) to reach network of SMEs that need these funding.

Some banks complain that some SMEs don’t have accurate record keeping that could attract access to credit from banks, do you think that way?
Maybe the banks can partner with SMEDAN to educate the SME community on the process and conditions of access to credit in banks; monitor them and maybe act as guarantors to access such credit. They would also ensure prompt payment of such grants/ loans, because the truth of the matter is if a bank borrows you money and you don’t return it, the tendency is for the bank to stop the issuance of such loans.