The governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele has stated that the financing gap for Micro, Small and Medium Enterprises(MSMEs) in Nigeria is estimated to be about N617.3 billion annually, a situation he considers worrisome.
He stated that, less than five per cent of these businesses have access to adequate finance to support their working capital and business expansion needs.
He maintained that, some other constraints to MSME development in Nigeria, as noted in the PwC survey, includes: access to market, infrastructure deficit, insufficient cash flows, multiple taxations, regulatory burdens, and sub-optimal implementation of the provisions of the MSME policy.
He emphasised that access to finance remains one of the biggest threats to MSME development in both developed and developing economies in the world.
He made the disclosure at the 30th Anniversary Conference and Awards of the Finance Correspondents Association of Nigeria, (FICAN) themed “Financing Infrastructure & SMEs for inclusive growth in the post-COVID-19 economy.”
The governor, who was represented by the director, Corporate Communication, Mr. Osita Nwanisobi said, despite being a major driver of growth, innovation, and job creation emphasized the ability of micro, Small, and Medium enterprises (MSMEs) to spur growth and create jobs has been hampered by a lack of access to quality infrastructure.
He noted that, “beyond infrastructure, access to finance remains one of the biggest threats to MSME development in both developed and developing economies alike, with serious implications for productivity, economic development, and job creation.”
He revealed that the apex bank has put in place several policy measures to stimulate economic growth and reduce the impact of the COVID-19 pandemic on Nigerians while reiterating that the CBN has remained committed to fulfilling its developmental mandate by collaborating with stakeholders across infrastructure and MSME segments in order to boost domestic output.
On his part, he reiterated the need for fiscal authorities to collaborate with the Central Bank of Nigeria to change the lenses through which they look at MSMEs and infrastructure development, by developing innovative policy measures to unlock the potentials of these enterprises to drive innovation and industrialisation.