Empowering Micro, Small and Medium Enterprises

The role of Mirco, Small and Medium Enterprises, MSMEs, as the engine of a viable economy was the centre of discourse at a one-day Lagos-east MSMEs Clinic/Workshop organised by Senator Tokunbo Abiru Foundation in conjunction with The Fate Foundation. At the workshop, 1,000 trainees received Knowledge Pack ‘do it yourself’ manual while the senator also announced N100 million Constituency Intervention Revolving Loan for the scheme, writes Funke Olaode

He was a foremost banker with a track record of excellence where he reigned for over three decades before dabbling into politics. And within a short period as a politician, he has become a game-changer and philanthropist whose milk of kindness has begun to lift people out of poverty through different initiatives.

On Monday, November 8, 2021, the CDM event centre in Magodo, Lagos, welcomed one of the illustrious sons of Lagos and Chairman, Senate Committee on Industries, Senator Mukhail Adetokunbo Abiru, at a capacity development training for 1,000 Micro, Medium and Small Enterprises (MSMEs) in the Lagos-east Senatorial District.

The unprecedented crowd was overwhelming as more than 1,000 participants, and top corporate players from different sectors of the economy besieged the expansive hall. The roll call of party stalwarts attests to the fact that Abiru is the beloved son in whom they are all well pleased.

Among the dignitaries were the Executive Chairman, Lagos Inland Revenue Service (LIRS), Mr. Ayodele Subair; former Minister of Works, Senator Adeseye Ogunlewe; Mr. Olawale Edun, Senator Anthony Adefuye; Executive Director, FATE Foundation, Adenike Adeyemi, Chairman, Mrs. Feyisola Tokunbo-Abiru, Asiwaju Bashorun Olorunfunmi, Prince Abiodun Ogunleye, Omooba Olumuyiwa Sosanya, and MD/CEO, Bank of Industry (BOI), Mr. Olukayode Pitan.

The MSMEs Clinic, a joint initiative of the FATE Foundation and Tokunbo Abiru Foundation is a one-stop shop for over 1,000 (MSMEs) in Lagos-East Senatorial District to access the much-needed business advisory, regulatory access, funding linkage and growth support services.

FATE Foundation is a 21-year-old non-profit organisation that has enabled over 185,000 Nigerians across 27 states to start, grow and scale their businesses.

This is in line with Abiru’s commitment to ensure MSMEs within the Senatorial District are effectively positioned for growth and to provide MSMEs with the much-needed access to information, resources, and capacity building particularly in this COVID-19 era, and the resultant new normal.

At this year’s workshop, all participants were given a set of “The Nigerian Entrepreneur’s Handbook” covering specific business topics: Strategy, Marketing; Communication, Tax Management, Legal, Digital Technology, Human Capital and Financial Management produced by FATE Foundation in partnership with top firms in Nigeria such as Deloitte, KPMG, Banwo & Ighodalo, Varraki Business Solution, ACCA amongst others.

In his speech, Abiru, an accomplished banker said the training was to enhance the capacity of micro, medium and small business owners in the Senatorial District to scale, adding that lack of capacity had been identified as one of the major reasons MSMEs fail.

Highlighting the critical roles MSMEs play in the nation’s economic development, the senator said “MSMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90 per cent of businesses and more than 70 per cent of employment worldwide.”

He continued: “Formal SMEs contribute up to 40 per cent of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included.

“The latest SMEDAN/NBS MSMEs survey indicates Nigeria’s SMEs contribute nearly 50 per cent of the country’s GDP and account for over 80 per cent of employment in the country.

“It has been projected by the World Bank that about 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SMEs development a high priority for many governments around the world. In emerging markets, most formal jobs are generated by SMEs, which create seven out of 10 jobs.”

Abiru said it was therefore instructive to assist the struggling businesses who were mostly impacted by the devastating COVID-19 pandemic with workable business solutions in the new normal world.

The senator said that the knowledge pack, a combination of seven books written by foremost experts which participants got for free, are reference materials for now and in future, adding that their contents are the secret of success of most major businesses.

According to him, “Timeless and highly valuable literature on subjects of Tax Management, Human Capital, Financial Management, Marketing and Communications, Strategy, Legal and digital technology will be made available to you at the expense of my Foundation. The leading Nigerian Entrepreneur pack is a practical “do-it-yourself manual” that will greatly aid business decisions and strategies as you journey along.”

To the admiration of participants and dignitaries that graced the occasion, the Senator announced the launching of a N100 million soft business loan to support trained MSMEs with working capital, as well as asset finance for equipment acquisition at a highly subsidized interest rate. The N100 million Constituency Intervention Revolving Facility which will be executed in partnership with Small and Medium Enterprises Development Agency (SMEDAN), has a minimum limit of N100,000 and a maximum of One million naira with as low as 6% interest rate with a flexible repayment plan from one to 12 months starting end of the first quarter (Q1), 2022. The senator mulled plans to increase the revolving facility in the same sum on yearly basis. The Bank of Industry (BOI) also agreed to commit an additional N100 million to the scheme.

A former Lagos State Commissioner of Finance and Governor’s Advisory Council member, Edun applauded the gesture of Senator Tokunbo Abiru, describing the business aid as a great initiative.

Also, Ogunlewe urged other elected public office holders to learn from the giant strides of Abiru. The former minister who accompanied Senator Abiru on touring business clinic consulting desks urged participants to place a premium on the knowledge they had acquired in the course of the workshop and business clinic.

Corroborating Senator Abiru, Subair emphasised the role of MSME in an economy, stating that its impact cannot be overemphasised. He commended Sen. Abiru for this initiative “because to be self-sufficient and successful entrepreneurs go beyond hand-out but the knowledge to pilot the business is key. This is a welcome development in Lagos.”

Representative of CEO of SMEDAN, Mr. Wale Fasanya also acknowledged Senator Abiru’s effort in ‘don’t give me fish cliché but teach me how to fish’. He also on behalf of his organisation promised the foundation the much-needed support in this mission.

Pitan also gave kudos to Abiru that the intervention is very timely “because there is a need to get the youths back to work otherwise the consequences of jobless youth may consume ‘All of us’.”

He enjoined other like minds to replicate Abiru’s initiatives across the country. He rounded off his remarks by saying that knowledge is good but integrity is key. He promised to align with the vision of Tokunbo Abiru Foundation by matching funds in terms of soft loans to assist people.

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MSMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90 per cent of businesses and more than 70 per cent of employment worldwide