By; MOHAMMED KAWU, Bauchi
The Federal Government has between July 2019 to July 2022, successfully disbursed the sum of N785 billion to over ten million Medium and Small Enterprises (MSMEs) under its Backward Integration Program aimed at domestication of high-priority products for exportation.
The Minister of Industry, Trade and Investment, Otunba Richard Adeniyi Adebayo said that the domestication was possible because the Bank of Industry (BOI) has further deepened its capital base to $5 billion with international partners like AFREXIM, and Credit Suisse, among others”.
Adebayo at the 14th Meeting of the National Council on Industry, Trade & Investment holding in Bauchi on Thursday, said that one of the key strategies his ministry used in the implementation of its mandate is the revision of the MSME policy to drive the growth and competitiveness of MSMEs in the country.
To this end, the minister said, the policy has successfully increased the nation’s capacity to fund tech-driven MSMEs, through our collaboration with the African Development Bank (AfDB) to secure the $500 million Technology Fund.
“Furthermore, the MSME Survival Fund Initiative was launched in the wake of the COVID-19 Pandemic as part of the Nigerian Economic Sustainability Plan (NESP), which protected MSMEs from the shock of the COVID-19 Pandemic. As of July 2022, ₦67.5 billion had been disbursed to over 1.2 million beneficiaries, thus protecting at-risk jobs and creating new ones”.
Minister Adebayo explained that his ministry has implemented various initiatives focused on creating the right environment for Micro, Small and Medium Enterprises to thrive, including measures to ensure MSMEs have improved access to finance, enhanced market access, and reduction in operation cost”.
“I am glad to report that progress has been made in these programs; over $3 billion has been invested in 7 Sugar BIP projects and 8 independent projects. In the Automotive sector, over $ 1 billion of investment has been recorded and we are ready to proceed to the next phase for the Automotive Industry; the review of the NAIDP is almost complete as the Plan is going through the Validation Process”.
Adebayo, a former governor of Ekiti state, revealed that the items included Sugar, Cassava Starch, Oil Palm, Dairy, Cotton Textiles & Garments (CTG) and Automobiles saying, “I am glad to report that we have recorded progress in each of these commodities”.
He recalled that Nigeria signed the AfCFTA agreement on 7th July 2019 and deposited its instrument of ratification at the African Union Commission on 5th December 2020, and subsequently inaugurated the National Action Committee on AfCFTA (NAC) to coordinate relevant Ministries, Departments and Agencies to drive AfCFTA readiness initiatives which will position Nigeria to benefit fully from the agreement”.
The Minister stated, “The review of Nigeria’s trade policy is also being finalized; to ensure that the nation has better leverage before entering any trade agreement with any country. This will also position the country to facilitate trade and market access, especially by successfully participating in the AfCFTA.”
According to him, other programmes geared towards Trade Facilitation and improved export market access include the Export Expansion Facility Programme (EEFP), established to facilitate foreign trade and create more jobs through various programs such as export finance, infrastructure, capacity development and market access.
Adebayo further disclosed, “The program has supported over 280 export-oriented businesses with grants, leading to the creation and saving of over 100,000 direct jobs and an additional 20,000 jobs for youths and women directly”.
“I should also mention that the Federal Executive Council has approved the National Quality Infrastructure Program and established the Federal Produce Inspection Service (FPIS) as a separate agency that will help improve the quality of products manufactured for export in Nigeria”, he added.
On creating an Enabling Business Environment to attract and retain investments, the minister said, “the Ministry, and the Nigerian Investment Promotion Council are committed to ensuring that we do not just attract investments, but that we attract and protect investments that genuinely benefit Nigeria and its citizens.”
“Building on this path, Nigeria has successfully revised its model Bilateral Investment Treaty (BIT); to include a specific provision for investment facilitation that institutionalizes the principle of supporting investors to actualize their investments.”
He said that as part of the ministry’s efforts in line with Executive Order 001 and promoting transparency in business, the Ministry has modernized and upgraded its One-Stop Investment Centre (OSIC), which speedily resolves investors’ problems by bringing them and the Government Agencies required into a “Laboratory” until the issue is resolved”.
He expressed confidence that the OSIC Laboratory will help us to drive practical policy reform, protect existing and prospective investments, encourage investments and create/protect jobs.
The Minister also said that “Likewise, the repeal and re-enactment of the Companies and Allied Matters Act,1990 (CAPC20, LFN2004) CAMA 2020 provides a robust framework for reforming identified legal, regulatory and administrative drawbacks that have impacted doing business in Nigeria, over the years.”
According to him, “To further accelerate industrialization, we are fast-tracking the establishment of Special Economic Zones (SEZs) across the country to increase the availability of infrastructure and provide fiscal incentives for value addition.”
The Minister said, “our initiatives and successes are too numerous to mention at this forum, but there is still a lot of grounds to cover. For example, the nation is looking to us to solve big problems such as the unemployment of almost 30 million people who are mostly youth.”
“Given the size of our challenges as a nation, we must design interventions to address the scale of the problems we need to solve; this will ensure we come up with creative/innovative ways to finance, implement and ultimately deliver transformative results.”
He added, “We need to better take charge of the areas which form part of our mandate, irrespective of who else is implementing initiatives in such spaces. We must be better, stronger advocates, driving the actions of all stakeholders. We should also continue to aim for global best practices in policy development and implementation as our we compete for investments globally”.
Minister Otunba concluded, “We appreciate the cooperation we have received from various State Governments, some of which are present here today and we look forward to strengthening our partnership in delivering jobs and creating wealth for Nigerians.”
Bauchi State Governor, Sen Bala Mohammed Abdulkadir has in a remark, said that his administration had been initiating and implementing policies with the objectives of moving the economy of the state along the trajectory of the nation’s overall development aspirations.
The policies, he noted, were also in tandem with President Muhammadu Buhari’s aspiration to make sure that poverty was fought to the last level, and acknowledged the contributions of his junior, Hajiya Mariam Katagum who represents the state at the Federal Executive Council along with the Minister for Education, Malam Adamu Adamu.”
Senator Bala Mohammed also said, “We are in the opposition but we have no regret that we have them as our representatives. They have really brought representation to the level of competence that I am proud of.”
He thanked President Muhammadu Buhari for allowing them to always contribute as sub-nationals, saying “Bauchi State is a state of Buhari and Buhari is Bauchi State and that’s why even as a governor in the opposition, I know the position of Mr. President”.
