High energy cost is a major challenge for businesses and manufacturers in Nigeria. How can this be addressed and overcome?
The energy issue should have been sorted out a long time ago if the government had been very consistent with their policies and its execution. The government should have collaborated with the private sector in a better way to achieve this lofty goal.
Recommendations have been made to the government to include, at least solar and wind energy, in the production of sustainable energy. And to enlighten the masses on the benefits and long term profitability.
Sometimes too, our investors are not patient enough to wait for long term investment yields. The government should provide incentives for investors and create a peaceful environment for sustainability.
It will surely take some time for these to yield fruits but we have to take the right steps now and avoid further delay. It should be underscored that the nation’s poor power infrastructure is not good.
There should be the adoption of an energy mix including solar, wind, turbine and hydro, to advance the country’s power services. Government should use the savings from the electricity subsidy removal of Band A customers to develop the country’s power backbone or infrastructure.
We have a lot of dilapidated infrastructure. Part of the subsidy gains should be used to improve not only the power infrastructure but other infrastructure.
Before now, we had money or grants that were given to some companies to produce prepaid meters. Unfortunately, some people still do not have prepaid meters.
They gave a specific deadline when collection of the prepaid meter must happen after payment but now people wait for a very long time after payment. And people are asking why?
Businesses in Nigeria are currently suffocating if not being strangulated. From your experience, what are the challenges of the Micro, Small, and Medium Enterprises (MSMEs)?
A lot of all these challenges are not new but are growing daily. Sometimes, it is how the government formulate and execute the policies without giving the business community enough time to prepare for alternatives.
Take a look at increases in the energy and petroleum sector and you will agree with me that most, if not all business owners, were caught unaware. And the effects are glaring on the masses.
I think the government should have given them enough notices as it’s being done in other developed societies and to have also provided financial support to businesses in a more balanced and coordinated way.
Most of the tax policies and other government revenue generating sources are really frustrating and should be reviewed and executed with a better approach in line with the ideas of ease of doing business in Nigeria.
Why is the establishment of Kosofe Chamber of Commerce and Industry [KCCI], in Kosofe Local Government Area of Lagos State important?
To bridge the gap of communication and strengthen the relationship between the government, most especially, at the local government level and the business owners.
The Chamber will also support in the policy formulations and advocacy programmes. It is important because it will provide educational training for the members and create networking opportunities, marketing and publicity platforms for business growth, among others.
What are the challenges facing the City Chambers like KCCI?
Funding is the greatest challenge facing most City Chambers around the world and some members have the challenge of committing their time to the activities of the Chambers.
However, it is interesting that city chambers like Kosofe Chamber of Commerce and Industry (KCCI) are evolving into a more dynamic organization despite the challenges.
What has been the response of MSMEs in the local government to the formation of KCCI?
Looking at the overwhelming turnout of business leaders, young startups and government executives and the positive feedback of the recently concluded Kosofe Economic Dialogue 2024, we know that it was worth all the efforts put into the formation of the Chamber.
We believe that our upcoming programmes will generate more benefits and profitable businesses for the members and the business community in general.
What pieces of advice would you give to the federal and state governments on how to boost MSMEs and industrialisation?
Most times you hear that the governments
There should be the adoption of an energy mix including solar, wind, turbine and hydro, to advance the country’s power services
are giving out loans and grants to the MSMEs but wouldn’t have clarity on the procedures. It’s not only the good intentions that matters but the actualisation of the process and how the success is being measured.
Loans and grants should be given to those genuine entrepreneurs that are properly screened and certified by their chambers and made to sign undertaking to utilise the money for strictly business that it is meant for.
The Chamber will set up a monitoring committee to ensure that repayments are made and recycled for others to benefit from the programme. Businesses should be encouraged to set up multipurpose cooperatives for better disbursement and management of funds.
Commercial banks should be mandated to give loans to businesses operating with a turnover between N20million – N50million at rate of 10 per cent per annum with a moratorium of 60 days before the monthly loan repayments. Tax exemptions should be granted to new businesses for a period of 24 months after setting up.
Do you think Small and Medium Enterprises (SMEs) have been given their proper place in the country?
SMEs have not been really taken care of and there is the need for us to develop the SME community and SME businesses in Nigeria. We have been able to bring this to the level because I believe that there will be grassroots political education and economic development.
I believe strongly in that. Unless we begin to develop our grassroots economic policies, we do not really say we are making a headway.
The grassroots economic policies have to be planned and executed in a way that SMEs at the grassroots will be able to generate more, they will be able to pay more taxes, employ more people and groom the future leaders in all areas.
We still need to have more City Chambers and I am very confident that this is the beginning. We will continue to have dialogue and conversation sessions and we will continue to do other events that will make the policy makers work together with the private sector. It is just about working together and not in isolation.
As an advocacy group and a group, we believe that some of the things we are saying are to develop the people. The policy makers have to listen to the grassroots. It is not just about palliatives. People want to work and make money but they want policies that will encourage them.
Policies that will grow their businesses. That is what KCCI is advocating. Policy makers and SMEs have to work together and collaborate. We have to look at the policies that will benefit the people and at the same time bring improvement to the welfare of the people but the government cannot do it alone.
With the corporate and public sectors working together, things will be better. It is not going to be easy and it is not an overnight issue but if we begin to put the right structures in place, as we move on to the next step, we will be getting it right rather than moving on a swoop and we are not getting it right.
We have to put the structure in place and that is what we are doing. I want to inform policy makers that we have to work together. We have to collaborate and we have to look at the policies that will benefit the people and at the same time bring improvement to their living standards and welfare.
At the same time, the government cannot do it alone. But with the public and corporate/ private sector working together, I think there will be progress. It is not an easy thing and it is not going to be an overnight thing, let us be honest to ourselves and clear about that.
It will take some time. But if we begin to put the structures in the right places, things will take a better shape. Yes, as we move on to the next step, we will be getting it right rather than moving on a swoop and we are not getting it right. We have to put the structures and that is what we are doing.