ENTERPRISE DEVELOPMENT: MSMEs OPERATORS IN LAGOS EAST GET BOOST; SEN. TOKUNBO ABIRU ROLLS OUT N100 MILLION SOFT LOAN, OTHERS
By Oki Samson, Trek Africa Newspaper
The harsh effects of the COVID-19 pandemic last year will linger economically and otherwise for many Nigerians. Many businesses are trying to get back. Many Micro, Small, and Medium Enterprises (MSME) owners are still struggling. Some may not even recover. This is why the Senator representing Lagos East Senatorial District and Chairman, Senate Committee on Industry, Sen. Tokunbo Abiru organized an intervention for 1000 MSME owners in his constituency. This is the crux of the MSME Clinic/Business Aid which held on Monday in Shangisha, Lagos.
The initiator, the Distinguished Senator Tokunbo Abiru explained the context of the laudable initiative, ‘It came about because of the role that MSMEs play not only in Nigeria in terms of employment opportunities and contribution to GDP. It is very important for someone like me who has extensive career in the corporate world. I cannot keep quiet and pretend that I am not aware of the impact of COVID-19 to businesses.’
The Chairman of Senate Committee on Industry added: ‘This is why I deem it fit to hold a session like this to see how we can support. We are here because of what COVID-19 has done to all businesses and of course, MSMEs are not an exception. Formal MSMEs contribute about 40% to emerging economies. This number is significantly higher when informal MSMEs are included.’
There are two major takeaways from here today, Trek Africa Newspaper gathered during the speech of the Senator. ’An Entrepreneurial Do-It-Yourself pack, a valuable literature on subject of tax management, human capital, financial management, marketing and communication, strategy, legal issues, and digital technology will be made available and presented for every participant at my own expense. The materials are authored by experts in the Nigerian economy.’
‘Upon the completion of this programme, my Foundation also through my constituency will launch N100million business soft loan that will be available to MSMEs as working capital. I want to assure that this support for the constituency will be managed by TACT Foundation and SMEDAN. This loan will not be prized at more than 6% per annum. As long as I remain in this position, I will ensure that we increase the value of this loan with equal sum. That means yearly, N100 million will be targeted strictly for MSMEs. The details of the loan programme will be given by SMEDAN. I have no doubt that in few years, many businesses will recover and soar high’, the Senator affirmed at the opening ceremony of the MSME Workshop.
Senator Tokunbo Abiru delivering his special address at the event.
The MSME Workshop is organized by TACT Foundation in conjunction with Fate Foundation, Nigeria’s foremost enterprise development organization. Speaking on how the project was birthed, the Executive Director, Fate Foundation, Adenike Adeyemi recalled: ‘Around mid-June, I got a call from Senator Abiru who has been a strong partner with Fate Foundation even before his current role and has really supported our programme for about 2-3 years. He said he wants a way to support MSMEs within Lagos East Senatorial District. So we had meeting with his team.’
‘He is very intentional about this program. I want to appreciate all partners that have worked with us and Senator Abiru to ensure that this programme happens’, she praised every organization involved on the project.
The development partners on the project include the Bank of Industry (BOI), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Lagos Internal Revenue Service (LIRS), Lagos State Employment Trust Fund (LSETF), and Standard Organisation of Nigeria (SON). Most of the agencies had their bosses present at the event.
The Executive Chairman of Lagos Internal Revenue Service (LIRS), Mr. Ayodele Subair noted that the Workshop is a significant milestone. ‘Advanced countries have succeeded largely because of the commitment and sacrifice of various stakeholders – corporate organizations, NGOs, and people of goodwill mostly drawn from the private sector. This is why an event of this nature marks a significant milestone. The launching is a testimony of the partners and Sen. Abiru to make poverty eradication a reality of national life. I am delighted to be a part of this epoch-making event.’
Also present, the Managing Director/CEO of Bank of Industry (BOI), Mr. Kayode Pitan painted the scenario of what has happened to businesses since the pandemic started. ‘Looking at event centres, for most of last year, they were shut but there are many things associated with event centres. For instance, caterers, bouncers, decorators, musicians, ushers, dressmakers, people who tie gele, people who exchange mint currencies for old ones, cleaning companies, securitymen, equipment rentals, they were out of business. So just looking at event centres alone, you will be surprised how many people lost their jobs last year.’
‘The creative industry – musicians, filmmakers, film houses, actors, actresses – nothing was happening for most of the pandemic period. And you can replicate that in other industries. Some have not recovered and some will never recover. So what our Senator is doing today is to get our people back to work. I pray this will be the first of many. For other senators, chairmen, and others will borrow a leaf from him and do the same’, Oki Samson of Trek Africa Newspaper noted Mr. Pitan charging other politicians to take a cue.
The Executive Secretary of Lagos State Employment Trust Fund (LSETF), Teju Abisoye shared: ‘A lot of problems have been enunciated today about the problems facing the MSME especially post-COVID pandemic. More recently, Fate Foundation did a report that said over 74% of MSMEs complained that they have issues around funding. This year, we conducted a report that says 83% of MSMEs was primarily funding and others said it is market expansion while some say it is skill and capacity development.’
‘We have a Lagos State Recovery Plan which is to ensure that MSMEs adversely affected by the pandemic get some relief. It was launched by our Governor, Mr. Babajide Olusola Sanwo-olu in October this year to make sure that businesses can access grants to make them recover. Some things are non-negotiable to have which are the LASSRA ID and the Tax ID’, Trek Africa gathered during her presentation.
Many dignitiaries within and outside the Lagos East Senatorial District were also in attendance. They include member of the Lagos State Governor’s Advisory Council (GAC), Asiwaju Olorunfunmi Basorun; wife of Senator Abiru, Mrs. Feyisola Abiru; Mr. Olawale Edun; Chief Bode Oyedele; members of Federal House of Representatives; members of Lagos State House of Assembly; LG/LCDA chairmen; and members of the TACT team.
Hon. S. O. B. Agunbiade, member of Lagos House of Assembly spoke briefly with Trek Africa Newspaper, ‘The programme is a form of empowerment to strengthen individuals in the ease of doing business. We cannot all be running after white collar jobs. I am sure that everyone here will strengthen their business enterprise with the knowledge gained here. Nigerians are arrogant in their ignorance. You don’t know and you do not agree that you don’t know. You can’t get anything like that. If you do it right, you will get it right.’
The mayoress of Ikosi-Isheri LCDA, Princess Abolanle Bada, reflected: ‘I must be sincere that this is a very great initiative. It will make all the electorates know that Senator Tokunbo Abiru is not only concerned about politicians. We, at the grassroots level, have also seen this as a model that we can copy.’
