Over the years, the federal
government has discovered SMEs as the cradle for industrialization and a
prerequisite for rapid economic growth and self reliance. As a result, the
government enunciated a number of policies and programmes/incentive that would
create a conducive environment for the development and promotion SMEs. The
government for instance, enunciated a number of financial policies through
national development plans and budgets as well as through its agencies to fund
and provide necessary extension service to SMEs. The purpose of the government
financial policy thrust is to ensure adequate financing of SMEs through loans
or equity participation and to provide fiscal incentives designed to aid their
growth and rapid development. Among these policies/programmes are the small
industries credit committee (SCC) set up to administer to the country between
1975 and 1980, the establishment of the Nigerian bank for commerce and industry
(NBCI) in 1973 to provide financial services to small scale businesses, the
establishment of national directorate of employment (NDE) in 1986 to promote
the development of small scale enterprises. Other agencies which includes the
Directorate of Food, Road, and Rural Infrastructure (DFRRI), Better Life for
Rural Dwellers, Peoples Banks, Community Banks, New Micro Finance Banks (MFB),
Working for Yourself Programme, the Centre for Management Development was
established to enhance the growth and development of SMEs.
government has discovered SMEs as the cradle for industrialization and a
prerequisite for rapid economic growth and self reliance. As a result, the
government enunciated a number of policies and programmes/incentive that would
create a conducive environment for the development and promotion SMEs. The
government for instance, enunciated a number of financial policies through
national development plans and budgets as well as through its agencies to fund
and provide necessary extension service to SMEs. The purpose of the government
financial policy thrust is to ensure adequate financing of SMEs through loans
or equity participation and to provide fiscal incentives designed to aid their
growth and rapid development. Among these policies/programmes are the small
industries credit committee (SCC) set up to administer to the country between
1975 and 1980, the establishment of the Nigerian bank for commerce and industry
(NBCI) in 1973 to provide financial services to small scale businesses, the
establishment of national directorate of employment (NDE) in 1986 to promote
the development of small scale enterprises. Other agencies which includes the
Directorate of Food, Road, and Rural Infrastructure (DFRRI), Better Life for
Rural Dwellers, Peoples Banks, Community Banks, New Micro Finance Banks (MFB),
Working for Yourself Programme, the Centre for Management Development was
established to enhance the growth and development of SMEs.
However, the performance of
the small scale industries credit scheme (SCC) was unfortunately rather poor in
the sense that many unviable projects were funded (Ikherehon, 2012).
Nevertheless, the Nigerian bank for commerce and industry (NBCI) loans and
equity investment in small business continued to be of immense help in the
development of SMEs in the country (Anyanwu, 2011). The activities of the
national directorate of employment resulted to the creation of over 148,000 new
jobs which were directly created through the founding and setting up of small
scale enterprises (Iromaka, 2006). In addition, the National economy recovery
fund (VERFUND) was established to promote SMEs by providing medium to long term
loans (5-10 years) to those in Agro-Allied industries, industrial support
services mining, quarrying, equipment leasing and other ancillary projects. The
federal government provided N190 million while CBN contributed N100 million.
African Development Bank contributed the remaining counterpart fund (Izedomi,
2011).
the small scale industries credit scheme (SCC) was unfortunately rather poor in
the sense that many unviable projects were funded (Ikherehon, 2012).
Nevertheless, the Nigerian bank for commerce and industry (NBCI) loans and
equity investment in small business continued to be of immense help in the
development of SMEs in the country (Anyanwu, 2011). The activities of the
national directorate of employment resulted to the creation of over 148,000 new
jobs which were directly created through the founding and setting up of small
scale enterprises (Iromaka, 2006). In addition, the National economy recovery
fund (VERFUND) was established to promote SMEs by providing medium to long term
loans (5-10 years) to those in Agro-Allied industries, industrial support
services mining, quarrying, equipment leasing and other ancillary projects. The
federal government provided N190 million while CBN contributed N100 million.
African Development Bank contributed the remaining counterpart fund (Izedomi,
2011).
In addition, the formation
of small and medium scale industries apex unit within the Central Bank to
assist in the disbursement of World Bank $270 million loan to small scale
entrepreneurs and the latest official concern by the federal governments
towards encouraging the creation of small scale industries has been
encouraging. Therefore, attempt to console the effects of poverty and
unemployment in the country, further led to the establishment of Poverty
Alleviation Program (PAP), Youth Empowerment Scheme (YES), National Economic
Empowerment and Development Strategy (NEEDS) at federal level, State Economic
Empowerment and Development Strategy (SEEDS) at state level, Local Economic
Empowerment and Development Strategy (LEEDS) at local government level and the recently
inaugurated Npower programme.
of small and medium scale industries apex unit within the Central Bank to
assist in the disbursement of World Bank $270 million loan to small scale
entrepreneurs and the latest official concern by the federal governments
towards encouraging the creation of small scale industries has been
encouraging. Therefore, attempt to console the effects of poverty and
unemployment in the country, further led to the establishment of Poverty
Alleviation Program (PAP), Youth Empowerment Scheme (YES), National Economic
Empowerment and Development Strategy (NEEDS) at federal level, State Economic
Empowerment and Development Strategy (SEEDS) at state level, Local Economic
Empowerment and Development Strategy (LEEDS) at local government level and the recently
inaugurated Npower programme.