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We created N220bn fund to help MSMEs – Jonathan

By on January 24, 2015

The Federal Government designed the N220bn Small and Medium Enterprises Development Fund to tackle the dearth of financial resources available to small businesses and unleash their potential to create jobs and reduce the incidence of poverty.

President Goodluck Jonathan made this declaration at the opening of the National Summit on Raw Materials-based SME Clusters in Nigeria hosted by the Raw Materials Research and Development Council in Abuja on Thursday.

Jonathan, who was represented at the event by the Minister of Science and Technology, Dr. Abdu Bulama, said focusing on the transformation of raw materials in each locality of the country was necessary in order to diversify the economy in view of falling prices of crude oil in the international market.

He said, “In spite of the recognition of MSMEs globally as the critical engines of economic growth due to their potential to create jobs, boost production, generate income and reduce poverty; in Nigeria, they do not have adequate financing needed to play this pivotal role.

“My administration’s decision to create the N220bn MSME Fund as designed by the Central Bank of Nigeria is, therefore, meant to address this challenge, support entrepreneurs and unlock the potential of the MSMEs for job creation and poverty reduction.

“This is also aimed at ensuring that productive sectors of the economy continue to attract more finance necessary for employment creation and diversification of the country’s economic base.”

The President said the fund would enhance the capacity to develop the grass roots through provision of financial assistance to the active poor, who are majorly small business owners, and by so doing, expand their businesses and improve their livelihood.

He asked the management of the fund to collaborate with the Ministry of Science and Technology to ensure the successful implementation of the ward-based cluster programme.

Jonathan added that the nation’s ability to transform locally available raw materials into value-added products, which were acceptable and globally competitive, was crucial if Nigeria must be self-reliant.

“It is, therefore, a vital component of the country’s overall strategy for achieving global competitiveness, reduction of post-harvest losses and ensuring food security,” he added.

The President, Manufacturers Association of Nigeria, Dr. Frank Jacobs, put the local raw materials utilisation capacity of the country at 52 per cent as of 2013.

 

[Punch]