Government to address access to finance for SMEs
Lawan Hamidu & Hauwa Noroh  Ali, Abuja

The Federal Government has said that the major challenge facing the development of Micro-Small and Medium Enterprises (MSME) is access to financing.  

President Goodluck Jonathan, stated this through the Vice President Namadi Sambo, at the sixth edition of the Annual Microfinance Conference and Entrepreneurship Awards, organised by the Central Bank of Nigeria.  
However, President Jonathan said to address this challenge government was providing physical and social infrastructure, poverty reduction initiatives, wealth creation, and rigorous support for all intervention programmes.  

The President who described the MSME’s as the engine of growth of national economy, said government had put in place several measures to bolster job creation and reduce poverty, some of these programmes he enumerated were, the establishment of a  N50 billion Fund; the N30 billion Nollywood Fund: You-Win and the Train-To-Work (TRATOW). 

 He noted that “many more opportunities will be made available under the SURE-Programme,” adding “when fully implemented, these programmes will address the challenges of security, unemployment and youth restiveness that today confront us as a nation.”

In his remarks the CBN Governor, Mallam Sanusi Lamido Sanusi, stated that the apex bank was reviewing the Entrepreneurship Development Model to fast-track the development of the SME Sub-Sector.
 He noted that the importance of Microfinance in a growing economy cannot be over emphasized.  
He further said that the Conference was meant to provide a veritable avenue for the exchange of ideas amongst stakeholders.

Special fund for women

Mallam sanusi stated that Apex Bank would be establishing a special fund to assist the women improve on their businesses by the end of the 2012.
 ``I am pleased to inform you that the Bankers’ Committee has declared 2012 the year for women empowerment.

``Before the end of this year, the CBN will introduce a fund that is aimed at ensuring that business owned and managed by women gets access to single digit interest loans.

``On the agenda of the bankers committee is an attempt to get banks to give a commitment to reserving a minimum percentage of seats of their directors and top management for women.’’

Mallam Sanusi said it was the apex bank’s belief that involving women at that level in the sector, would improve financial inclusion

He said the bank would also establish a Web Fare considering the role of Information and Communication Technology in entrepreneurship development  to enable young entrepreneurs to key into e-business on the web.

He, therefore, tasked all the state governors to create avenues that would promote women and youth empowerment in the country.
 The CBN governor pointed out that it was necessary to reposition the micro-finance sub-sector, given the considerable role it could play in entrepreneurship development in the country.

He said that the sub-sector had several challenges such as inadequate financial infrastructure leading to low banking penetration.

He noted that the Bank had  revised the microfinance policy, regulatory and supervisory framework, and concluded on the National Micro finance Development strategy to address low banking penetration.

``The Bank made a commitment at the 2011 Alliance for Financial inclusion Global policy forum held in Mexico to reduce  Nigeria’s Financial exclusion rate  from 46.3 to 20 per cent by 2020.’’ 

Also speaking at the conference, Mrs Antonique Koning, a micro-finance specialist from Washington DC, said there was need for all stakeholders to enforce financial inclusion in the country.

This, she said, would help to build visionary financial inclusion strategy in Nigeria and help boost the economy.

``The timing for redoubling the collective commitment to financial inclusion in Nigeria is ripe.
 ``Indeed increasing access to finance is one of the tools that can help to reduce the vulnerability of citizens and enable them to build access.
 ``Nearly 60 million adults in Nigeria have no access to formal financial services, according to the 2010 finance survey as already mentioned.’’

She urged all stakeholders to work hard to ensure that they increased the level of financial inclusion in the country.

Goodwill messages came from the Minister of Women Affaris, Hajiya Zainab Maina, Mr. Emeka Emuwa, CEO of Citibank, Nigeria

 Highlights of the conference were the award of various entrepreneurship honours  by the Vice President Namadi Sambo to some deserving states and individuals and organisation, who had championed the development of SME’s in the country and also  to the Best National farmers of the year; Best Innovative Small/Medium Entrepreneur; and the Best micro Entrepreneur, among others.

The recipient states were Kano, Bauchi and Akwa-Ibom.

The theme of this year’s conference is Refocusing Microfinance for Entrepreneurship Development in Nigeria, as effort to support the sector to contribute meaningfully to the nation’s GDP.

Hauwa