Release of funds for MSMEs, way out of economic recession – NISER

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By; BAYO AKAMO, Ibadan.
The Nigerian Institute of Social and Economic Research (NISER) on Tuesday identified timely release of funds to boost operations of Micro Small and Medium Scale Enterprises (MSMEs) as one of the ways out of the present economic recession in Nigeria.
A Don at the Surveillance and Forecasting Department of the Institute, Dr. Babatunde Ekundayo stated this  while delivering the NISER monthly lecture titled ‘Impact of Micro Finance Banks on Micro, Small and Medium Scale Enterprises in Nigeria’.
Dr Ekundayo pointed out that this became imperative considering the fact that “the role of MSMEs in economic and social development is not in dispute”
“There is urgent need to take proactive strategy to address the constraints faced by MSMEs. There should be human and institutional capacity building for the MSMEs operators, urgent need for renewal and upgrading of MSMEs infstrastructure located in the existing industrial development centers through cluster development approach” he said.
Dr Ekundayo added that “government should always ensure that all funds released to boost the operations of the MSMEs get to them timely and as designed through effective monitoring of all implementation processes”.
According to him,“Micro finance banks is a financial institutions that specialize in banking services for low income groups or individuals lamented that proportion of the MSMEs reach by MFBs is smaller relative to the total number of MSMEs operators in the country.
“The proportion of the MSMEs reach by MFBs is smaller relative to the total number of MSMEs operators in Nigeria aside, access to credit, a number of problems are facing the operation of MSMEs in Nigeria. There is urgent need to take proactive strategy to address the constraints faced by MSMEs”.
“There should be human and institutional capacity building for the MSMEs operators,urgent need for renewal and upgrading of MSMEs infstrastructure located in the existing industrial development centers through cluster development approach.
Government should provide public goods that level the playing field for financial institutions to innovate financial services for improving access to finance in all segments of the market”.
Speaking further, Dr Ekundayo added that “there should be systematic introduction of poverty lending approach into macro financing options in Nigeria to jump start the growth of MSMEs in Nigeria to fast-rack diversification process”.
Dr Ekundayo however suggested the collapse of all barriers and obstacles to loan information through advocacy and sensitization by appropriate agencies” adding,“government should provide public goods that level the playing field for financial institutions to innovate financial services for improving access to finance in all segments of the market.
“Government intervention to correct market failures and assist potential start-ups and disadvantaged group in society is imperative”.

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