By Matthew Ojebola

Monday, 13 Dec 2010

The Central Bank of Nigeria has affirmed its support for small and medium enterprises as part of its contribution towards SME growth in Nigeria.

The Deputy Director, Other Financial Institutions Department, CBN, Mr. Yemi Bedu, said this at the Quarterly Chief Executive Officers Business Meeting and Luncheon, organised by the Finance Houses Association of Nigeria in Lagos.

According to Bedu, CBN is desirous of moving the financial sector forward by supporting it with its commitment to advancement of SMEs in the country.

This, he said, was a sure way to the contribute to the nation‘s economic development.

He said, ”The CBN is desirous of moving the sector forward through support for the financial sector‘s plans on SMEs improvement as a contribution to the nation‘s economic growth.

”The CBN is ready to meet the request of the finance houses executives; we can give intervention fund to the association if their demands are well articulated.”

Also speaking, the General Manager, GroFin Nigeria, Mr. Felix Awonaiya, said the development of SMEs in Nigeria was an essential element in the growth strategy of the economy.

He noted that SMEs were the engine room of any economy, adding, ”SMEs are not only contributing significantly to improved living standards, but they also bring substantial local capital formation and achieve high level of productivity.”

Speaking on the SMEs’ growth challenges, Awonaiya noted that constrained access to funding, shortage of skills and financial indiscipline were major hindrances affecting Nigeria’s SMEs’ growth.

”In developing countries like Nigeria, there is an urgent need to provide the required enabling environment for the development of SMEs, so that they can adequately play the role expected of them in economic transformation,” he noted.

Source: Punch