Vanguard News Nigeria

Govt agencies, banks blamed for poor SMEs growth

By Princewill Ekwujuru

The Managing Director/Chief Executive Officer of Shoptomydoor, Mr. Nduka Udeh, has taken a swipe at government agencies and banks as major impediments to Small and Medium Enterprises (SMEs) growth in the country.

Participants at Vanguard Economic Forum Series on MSMEs

Shoptomydoor is an e-commerce company which specializes in exportation and importation of various items to and from Nigeria, United States and the United Kingdom.

Udeh, in a chat with Vanguard at a programme tagged: “Export Opportunity for Everyone” in Lagos, listed the impeding factors faced by SMEs in the hands of government agencies such as National Agency for Foods, Drugs and Control (NAFDAC), Standards Organisation of Nigeria (SON) and the banks, to include time wasted on product inspection, product registration by NAFDAC and SON, bank financing, letter of credit, and collateral based finance by banks.

He said, “Nigeria does not have any credit system that works unlike the US where most SMEs start with credit from banks.”

Speaking about the Bank of Industry, (BOI) he said: “Go to their website and see the requirements needed to get a loan, you will get frustrated and jettison the idea because there is no way a small business can meet those requirements.”

He listed other impeding factors to include lack of information, which he said include improper awareness campaign on export processes, and limited information on the potential of the Africa Growth and Opportunity Act (AGOA), storage facilities, local logistics, which he linked to bad roads connecting farms.

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