…allege there’s favouritism in current funding structure
Experts have called on the Federal Government to urgently set up an independent Small and Medium Enterprises Intervention Committee in order to help SMEs stay in business, post COVID-19.
This, they said, would also help save livelihoods and cushion the effects of the pandemic on the economy at large.
The experts, who spoke in separate interviews with our correspondent, noted that SMEs were the drivers of economies, adding that the current intervention measures being rolled out were not adequately addressing SMEs.
The Managing Director, Toga Farms Limited, Mrs. Lola Olugbenga, said the COVID-19 lockdown in major states of the federation, including the inter-state travel restrictions, affected farm operations a greal deal, while most businesses recorded losses on livestock.
She said, “The rush before the lockdown was misinterpreted as increased sales for companies. We lost a lot here because there was no one to work, and there was no movement. Our ongoing facilities were halted. I have been reading the news of many billions being released as intervention funds for sectors, even SMEs. But we seem to be doing the same wrong things we have been doing in the past.
“There must be a proper committee that will ensure these funds are spread across the geo-political zones, especially through the different associations in every sector. If the recipients are picked through associations, we will achieve good results. No one around me, for example, has said that they know anyone who has benefitted.”
The Chief Executive Officer, Tedeyk Fashion and Accessories, Mr. Olumide Olusesan, explained that though the COVID-19 pandemic had affected many jobs across all sectors, the effect of these on the Nigerian economy would be mitigated if the Federal Government could address the issue of bail-out for the SME sector painstakingly.
He pointed out that the problem of funding in the sector had always been linked to the issue of just a few people benefitting from Federal Government’s funding, year in, year out.
Olusesan said, “Most times, you see the same set of people being advertised as recipients of Federal Government interventions. Nigeria is not for a few people; the country is for all of us. The President, the Minister of Finance, or those in charge should, for the first time, not listen to what those disbursing are saying. We need to think outside the box to ensure that funding gets to those who need it.
“The Federal Government must, as a matter of urgency, set up an independent SME intervention desk that will liaise with registered associations of SMEs and artisans, and on the basis of available funding, pick beneficiaries after a joint due diligence has been carried out on such companies. It is definitely not possible for every SME to benefit from all schemes. But we have reached a period where things should be done in a more transparent manner. This haphazard approach to funding should stop, or we will just be throwing money around with no impact, while poverty rate will continue to rise.”
The Central Bank of Nigeria, in March, announced the release of N50 billion Targeted Credit Facility stimulus package to support households and MSMEs affected by the COVID-19 pandemic.
The objective of the facility is to allow firms stay in business and ensure workers stay employed.
“But the impact of this intervention has not been felt. Government, through the CBN, should urgently right the wrongs in the application process and ensure that not the same people who have been benefitting from all schemes continue to benefit. People must see the impact of the intervention,” Olusesan argued.