Poverty and unemployment
has been a major problem for most developing countries across the world.
Poverty as a multifarious phenomenon has plagued the world in general and
Nigeria in particular over the years. It is often described as a condition
wherein people are unable to satisfy their basic needs of food, clothing, and shelter
(Essien & Udofia, 2006). In a fairly broad perspective, poverty is
characterized by deprivation, social inferiority, isolation, physical weakness,
vulnerability (high risk and low capacity to cope), powerlessness and humiliation
(Khan, 2010).
has been a major problem for most developing countries across the world.
Poverty as a multifarious phenomenon has plagued the world in general and
Nigeria in particular over the years. It is often described as a condition
wherein people are unable to satisfy their basic needs of food, clothing, and shelter
(Essien & Udofia, 2006). In a fairly broad perspective, poverty is
characterized by deprivation, social inferiority, isolation, physical weakness,
vulnerability (high risk and low capacity to cope), powerlessness and humiliation
(Khan, 2010).
In Delta State, the most
obvious dimension of poverty is low and highly variables level of income and
consumption. Income levels are low in Delta State. Consequently, high level of
poverty in the country has forced an increasing number of the citizen into
informal trading/commercial activities, handcraft, and retail shops eateries
and commercial motorcycling operators.
obvious dimension of poverty is low and highly variables level of income and
consumption. Income levels are low in Delta State. Consequently, high level of
poverty in the country has forced an increasing number of the citizen into
informal trading/commercial activities, handcraft, and retail shops eateries
and commercial motorcycling operators.
On the other hand, the
widespread problem of unemployment created by the inability of working age
people to secure a job has greatly overwhelmed the state’s economy. Recently
the state government lamented on the rising rate of unemployment and the
negative impact on the economy. To forestall this situation, the state
government has promised to focus more attention on Micro-SMEs to address the
problem of unemployment in the state in order to fight and banish poverty and
unemployment. Furthermore, the government has identified that SMEs played
significant role in economic development, form the backbone of the private
sector and account for about 60% of employment across the world. Therefore the agenda
focusing of SMEs is one of the vehicles for attaining global competitiveness by
the state. Some of the interventions of the government in enhancing SMEs in state
towards poverty reduction and employment generations include:
widespread problem of unemployment created by the inability of working age
people to secure a job has greatly overwhelmed the state’s economy. Recently
the state government lamented on the rising rate of unemployment and the
negative impact on the economy. To forestall this situation, the state
government has promised to focus more attention on Micro-SMEs to address the
problem of unemployment in the state in order to fight and banish poverty and
unemployment. Furthermore, the government has identified that SMEs played
significant role in economic development, form the backbone of the private
sector and account for about 60% of employment across the world. Therefore the agenda
focusing of SMEs is one of the vehicles for attaining global competitiveness by
the state. Some of the interventions of the government in enhancing SMEs in state
towards poverty reduction and employment generations include:
·
inauguration of 23-man
State Council on Micro, Small and Medium Enterprises to coordinate the
activities of SMEs in the country;
inauguration of 23-man
State Council on Micro, Small and Medium Enterprises to coordinate the
activities of SMEs in the country;
·
partnership with the
Central Bank of Nigeria in its efforts to inject N220 billion low interest long
term development finance for the benefits of SMEs;
partnership with the
Central Bank of Nigeria in its efforts to inject N220 billion low interest long
term development finance for the benefits of SMEs;
·
partnership with the Bank
of Industry and Bank of Agriculture is also exclusively pro-SMEs;
partnership with the Bank
of Industry and Bank of Agriculture is also exclusively pro-SMEs;
·
appropriation of
N300million for private sector development aimed at providing soft loans to
SMEs as well as facilitate capacity building opportunities for operators on the
rudiments of doing sustainable business and
appropriation of
N300million for private sector development aimed at providing soft loans to
SMEs as well as facilitate capacity building opportunities for operators on the
rudiments of doing sustainable business and
·
establishment of
Cooperatives Board with a mandate to organize all cooperative societies in the
country and to regulate their activities in the area of accessing loan.
establishment of
Cooperatives Board with a mandate to organize all cooperative societies in the
country and to regulate their activities in the area of accessing loan.
Also in Nigeria, the
Federal Government has also employed a number of efforts, some of which were
economic driven, for examples, establishment of micro-finance banks, small and
medium scale enterprises, among others to reverse or abate poverty in the
country. At various times since the 1970s, the government has designed and
introduced measures to promote SMEs in order to support employment generation
thereby reducing poverty among the citizens (Anyanwu, 2011). These efforts are
geared towards enhancing the operation of small scale businesses Also, these
measures have included fiscal monetary, and export incentives. The fiscal incentives
included tax holidays and tariff concession. In terms of monetary support, the
Central Bank of Nigeria introduced credit guide lines requiring commercial and
merchant banks to allocate a portion of their loanable funds to small
businesses.
Federal Government has also employed a number of efforts, some of which were
economic driven, for examples, establishment of micro-finance banks, small and
medium scale enterprises, among others to reverse or abate poverty in the
country. At various times since the 1970s, the government has designed and
introduced measures to promote SMEs in order to support employment generation
thereby reducing poverty among the citizens (Anyanwu, 2011). These efforts are
geared towards enhancing the operation of small scale businesses Also, these
measures have included fiscal monetary, and export incentives. The fiscal incentives
included tax holidays and tariff concession. In terms of monetary support, the
Central Bank of Nigeria introduced credit guide lines requiring commercial and
merchant banks to allocate a portion of their loanable funds to small
businesses.
Several developmental
financial institutions and schemes are also established to aid small
businesses, including the Nigerian bank of commerce and industry (NCBI), the
Nigerian Industrial Development Bank (NIDB), and the World Bank SMEI and SMEII
initiatives. There are also export initiatives from the Nigerian Export-Import
bank (NEXIM) to stimulate export loan facilities to small businesses as well as
export duty exemptions administered by the Nigeria Export Promotion Council
(NEPC). Other small business incentive programs included personnel training,
repair and maintenance of specialized machines, and extension services. Small
business assistance programs have also been established by local and state
governments.
financial institutions and schemes are also established to aid small
businesses, including the Nigerian bank of commerce and industry (NCBI), the
Nigerian Industrial Development Bank (NIDB), and the World Bank SMEI and SMEII
initiatives. There are also export initiatives from the Nigerian Export-Import
bank (NEXIM) to stimulate export loan facilities to small businesses as well as
export duty exemptions administered by the Nigeria Export Promotion Council
(NEPC). Other small business incentive programs included personnel training,
repair and maintenance of specialized machines, and extension services. Small
business assistance programs have also been established by local and state
governments.
Over the past six years,
the government has pursued a policy that should provide fertile ground for
investment. It has been noted that, with the round for small-business including
trade liberalization and making the operating environment more friendly to
entrepreneurs. The international monetary fund (IMF) has agreed to support more
economic growth in Nigeria by helping to finance infrastructure improvements
(Akwani, 2007).Therefore, promotion of such enterprises in developing economies
like Nigeria is of paramount importance since it brings about a great
distribution of income and wealth, economic self dependence, entrepreneurial
development, employment and a host of other positive, economic uplifting
factors (Aremu, 2010).
the government has pursued a policy that should provide fertile ground for
investment. It has been noted that, with the round for small-business including
trade liberalization and making the operating environment more friendly to
entrepreneurs. The international monetary fund (IMF) has agreed to support more
economic growth in Nigeria by helping to finance infrastructure improvements
(Akwani, 2007).Therefore, promotion of such enterprises in developing economies
like Nigeria is of paramount importance since it brings about a great
distribution of income and wealth, economic self dependence, entrepreneurial
development, employment and a host of other positive, economic uplifting
factors (Aremu, 2010).
