Obasanjo okays plan to amend small firm’s law
From Madu Onuorah, Abuja
PRESIDENT Olusegun Obasanjo has approved that the proposed amendment to the law establishing the Small and Medium Scale Development Agency of Nigeria (SMEDAN) giving it greater autonomy be fine-tuned and sent to the National Assembly for enactment.
The President also asked the Central Bank of Nigeria (CBN) to accelerate the constitution of the trust fund for the Small and Medium Industries Equity Investment Scheme (SMIEIS) as a boost for the small scale sector of the economy.
As at February this year, the SMIEIS, which is the sum of 10 percent of pre-tax profit of banks stood at N23 billion. Out of this amount, only N7 billion, an amount considered too small, has been disbursed.
There are fears that banks are using the money for informal businesses.
Presidency sources say that the establishment of a trust fund will help monitor the control and use of the SMIEIS.
In an approval of the interim report of the nation-wide survey/census of micro small and medium enterprises, farming and mining activities last month, President Obasanjo directed that there should be an adoption and adaptation of the structures of the Small Business Association (SBA) of the United States, Small Business Service (SBS) of UK and the Small and Medium Enterprises (SMEA) of India by SMEDAN.
With the adaptation of these structures, all small and medium industries financing would be guaranteed by SMEDAN.
Other approvals given by the President include:
urgent need to set up Business Information Centres (BIS) or Business Support Centres (BSC) in states to monitor and provide service outlets in this sector;
SMEDAN will, in conjunction with the private sector step up action towards establishing industrial parks where infrastructural problems such as electricity and water will be minimised;
continuous dialogue and interaction with the states and the local council authorities in order to sustain the current collaborative efforts with them; and
organisation of an indigenous technology expo by SMEDAN before the end of the year to spotlight some of the existing technologies for SME products in the country.
Other directives given by President Obasanjo also include that SMEDAN should identify areas of urgent need for improved power provision and immediately discuss same with the Minister of Power and Steel and the National Electric Power Authority (NEPA) for improvement.
SMEDAN is currently conducting a census of all Micro Small and Medium Enterprises in Nigeria (MSMEs). This, the agency noted, would help facilitate access to all factors of production including raw materials, appropriate technology, managerial skills, capacity building, markets, finance and industrial facilities such as industrial parks.
The census has already been conducted in about 32 states of the federation.
