SMEDAN, MFBs Seek Ways To to Ease Bottleneck To Loans
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has introduced One Local Government One Product (OLOP) in order to ease access to loans from the Central Bank of Nigeria (CBN) for Small and Medium Enterprises (SMEs) in Northwest region of Nigeria.
Speaking at the signing of Memorandum of Agreement with Candidates of Cooperatives and Micro Finance Banks on the Implementation of OLOP, held in Kano recently, the Director General of SMEDAN, Ummaru Dikko Radda said the project was to assist SMEs grow their businesses.
According to him, the major challenge that hinders the growth of SMEs was lack of access to loans from the CBN as a result of stringent measures introduced by the apex bank.
He explained that the purpose of introducing OLOP project, was to identify a single product in one local government area and assist the SMEs operators, in form of cooperatives with financial, technical and marketing support.
He further explained that SMEDAN would provide zero interest loan, which it facilitated from CBN, adding that the beneficiaries would pay 70 per cent back to the central bank and reinvest the remaining 30 per cent into their business.
“But there must be a NEEDS assessment for the program to be successful. We at SMEDAN, we shall provide machinery and working capital for the SMEs operators.
” This program was borrowed in Japan since 2004 but it is in 2016 that SMEDAN had implemented it with a view to help SMEs operators grow their business.
“Our duty is to guide you to grow your business and assist others grow theirs. We shall provide you with working capital, shares and machineries, ” he said
While congratulating the beneficiaries, he urged them to appreciate the federal government’s gesture by settling their debts as at when due.
According to him, in order to address the challenges, SMEDAN has initiated a debt settlement policy where 30 per cent of the accessed loan would be settled by SMEDAN and the remaining 70 per cent would be settled by the small scale entrepreneurs, aimed at improving the nation’s economy.
The zonal coordinator of SMEDAN in Kano, Alhaji Ahmad Mohammad Madaki, said the one local government, one product programme was an initiative of SMEDAN.
He said the intervention being offered by SMEDAN includes workplace, working capital and machinery.
Madaki, therefore, urged small and medium entrepreneurs in the country to embrace the programme, with the goal of achieving the desired objectives.
The ceremony was graced by small and medium entrepreneurs from the north-western part of the country.
CBN July Purchasing Manager’s Index rises by 2% To 7.6 Points
The Central Bank of Nigeria’s (CBN) Purchasing Manager’s Index (PMI) for the month of July 2019, has shown expansion in the economy.
According to the PMI report for July released by the apex bank on Wednesday, Manufacturing PMI stood at 57.6 points in July, compared with the 57.4 points recorded in June.
The expansion in the manufacturing sector indicated an increase for the 28th consecutive month. The index grew at a faster rate when compared to the index in the previous month, according to the report.
Of the 14 sub-sectors surveyed, 13 reported growth in the review month in the following order: petroleum & coal products; transportation equipment; cement; printing & related support activities; paper products; food, beverage & tobacco products; furniture & related products; fabricated metal products; nonmetallic mineral products; plastics & rubber products; primary metal; chemical & pharmaceutical products; and electrical equipment.
The textile, apparel, leather & footwear sub-sector recorded decline in the review period. At 58.9 points, the production level index for the manufacturing sector also grew for the 29th consecutive month in July 2019. The index indicated a slower growth in the current month, when compared to its level in the month of June 2019.