By Cynthia Alo

Governor of Lagos  State, Babajide Sanwo-Olu has advocated that supporting Micro, Small, Medium Enterprises, MSMEs, is essential for increasing productivity and boosting the economy given the global recognition of MSMEs as a major contributor to the economy in terms of job creation and employment generation.

The governor made this known during the sensitization workshop on insurance for MSMEs held at the Lagos Chamber of Commerce and Industry in Lagos.

According to him, the country could not afford to ignore the challenges confronting MSMEs, especially those that threaten their survival, adding that was why his administration described small businesses as very resilient.

Represented by the state’s Commissioner for Finance, Mr Rabiu Olowo, Sanwo-Olu said: “If you can do business in Nigeria and survive and thrive, there is no where in the world that you won’t be able to thrive.

“We cannot afford to ignore the challenges confronting MSMES, especially those that threaten their survival and that is why we describe our small businesses as very resilient.

“That is why Lagos State which is the hub of MSMEs in Nigeria launched so many initiatives and strategies that are still being implemented towards providing an enabling environment for MSMES and it is not only to thrive but to succeed.

“It will be shocking to know that we have a greater number of micro and small businesses in Nigeria than we have in the US and that is the driving force of our economy in Nigeria.

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“It is therefore apparent that supporting small businesses by creating opportunities for small businesses to thrive is essential for increasing productivity and boosting the economy given the global recognition of MSMEs as a major contributor to the economy in terms of job creation and employment generation,” Sanwo-Olu said.

On his part,  Chief Executive Officer of National Insurance Commission, NAICOM, Sunday Thomas, described MSMEs as the fulcrum of a nation’s growth and development.

“He observed that all development interventions of the current administration have had components focused on enabling the operation of MSMEs sprout and flourish, regretting that with little or no insurance content to deal with associated risks to ensure sustainability and guarding them against failure.

“While some challenges still abound from infrastructure to funding, it is encouraging that the Federal Government through its deliberate policy of removing 100 million Nigerians from poverty in the next ten years is taking on the challenges to build businesses and leverage them to create prosperity.”

“In addition to the efforts of the government at all levels, the spirit of entrepreneurship of Nigerians is driving creativity and productivity.

“However, the concern is that whatever gain or progress made in this sector can be halted abruptly in the face of a natural or man-made disaster which can often prove daunting to surmount without any support.”

“In particular, when MSMEs are affected by any mishap, the disruption produces not only direct business losses but also indirect losses and economic ripple effects. The range of impact includes job losses, debt overhang, and a relapse of households into extreme poverty.”

“While the risks that expose MSMEs to this type of vulnerability may not be within the scope of human control, what is within human reach is a deliberate risk management plan through insurance.

“It gives you confidence when insurance is that product you buy when you think you do not need it because it may be too late to buy it when the need for it arises.”

Vanguard News Nigeria