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South West states pledge improved investment climate for SMEs

By 3 min read

NAN-H-6
Investment
By Akeem Abas
Ibadan, April 2, 2017 (NAN) States in the South West Zone  have pledged commitment  to the improvement of the   investment climate to attract investors and ensure development and industrialisation of the region.

They made the disclosure at a consultative forum tagged,  “Ease of doing business, ”  which held  at Owu Crown hotel in Ibadan on Saturday evening.

The forum was organised by the Development Agenda for Western Nigeria (DAWN ) in partnership with the Department for International Development (DFID).

The representatives of the states–Mr A.R Alonge (Ondo), Mrs Folakemi Akinleye (Oyo), Musari Olukayode (Ogun) and  Gabriel Oso (Osun)—in various submissions, pledged to provide an investment-friendly climate to promote SMEs  and other investors.

They, however,  lamented the  non-repayment of over N2 billion in loans  given to SMEs in the zone, saying this was affecting the sustainability of the initiative.

Stakeholders  at the forum , in their  presentations,  had called on  governors in the zone  to review policies  on  small and medium business enterprises to allow industrialisation and development to thrive.

The forum, which had  in attendance representatives of the South West states, also attracted participants from  the private sector, NDLEA, NAFDAC, SMEDAN, Civil Society Organisations, security agencies and Corporate Affairs Commission.

Mr Adetayo Adeleke-Adedoyin, a Staff Analyst at the  DAWN commission,  said that stakeholders have roles to  play in identifying challenges and proffering solutions  to drive development in the zone.

“Nigeria was ranked 169 out of 190 countries in 2016 on ease of doing business.

“This was the reason for the constitution of a  presidential committee by the Ffederal Government to unravel challenges  of doing business and proffer solutions,” he said.

He noted that if the southwest and southeast zones succeed  in their  ease of doing business initiatives, it would impact positively  on the country’s development..

Mr Vincent Attah of  Development Initiative Network,  said  existing policies and framework for doing business did not factor in the interests of small and medium enterprises.

“These laws did not incorporate the interests of small and medium enterprises  thus hindering them in the bid to thrive, ”  he said.

Also speaking, Mr Temitope Richard-Banji of LEAP Africa,  noted that SMEs face stringent conditions arising from government policies and lack of financial literacy education on the part of small business owners.

He called for flexible policies that would recognise business interests on case-by-case basis to encourage development of business initiatives and drive development in the zone.

“It is really challenging doing business in the Southwest  Zone and Nigeria. Government policy is not friendly. Everybody is talking about agriculture but the farmers do not have access to the funds.

” The banks ask for collateral. How will somebody who is just trying to start business meet the requirements that favour only established companies?

“Also, NAFDAC registration requirements for start-up businesses in Nigeria need to be reviewed. If the policies are reviewed or treated on a case-by-case basis, it will ease doing business in Southwest Nigeria.

“There is need for financial literacy education. People are doing business because they have money but lack business plan.

“ Human capital development is important for businesses that want to scale up,” he said.(NAN)
TAA/OJO
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(Edited by Mufutau Ojo)