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FG to fast-track establishment of venture capital firms

By on July 19, 2013

The Federal Government said it will fast-track the establishment of vibrant and efficient venture and equity capital organisations that will help provide cheap funds for Micro, Small and Medium Enterprises across the country.

The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said this during the Launch of the National Enterprise Development Programme (NEDEP) and inauguration of the Ogun State Council on MSMEs in Abeokuta.

The programme, which was organised by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in partnership with the Ogun State government, is in line with the provisions of the Nigerian Industrial Revolution Plan.

Aganga said, “We want to build a new sector called Venture Capital and private equity sector to support small and growing businesses in Nigeria.

“Very soon, you will see some changes in our laws and regulations that will promote the development of venture capital organisations that will provide equity, debt capital and business support services to those sectors.”The minister noted that the inauguration of SME Councils at the state levels would enable both the federal and state governments to identify the peculiar challenges facing MSMEs in each state and then fashion out workable strategies to holistically address them.

He said, “We are currently changing the structure of MSMEs development in the country. One of our new initiatives is the development of the National Enterprise Development Programme. NEDEP is being spearheaded by the Federal Ministry of Industry, Trade and Investment and its three parastatals – the Bank of Industry, SMEDAN and the Industrial Training Fund.

“This is the first time ever that these three parastatals under my ministry are coming together to develop and implement a programme that will revolutionise the growth of the MSME sector in Nigeria.”

He added, “In terms of the new structure of MSMEs in Nigeria, I want to see a situation where we can have SME Councils in every state of the federation. We launched the first one in Kano (in the North), two weeks ago, while Ogun State is the first one we are launching in the South West.

“The state SME Councils will have representatives of the federal and state governments, trade associations and members of the Organised Private Sector as members.”