MFI/MFBs & MSMEs: CRITICAL STRUCTURES TO DRIVE ECONOMIC GROWTH TOWARDS POVERTY ERADICATION IN NIGERIA.
“People like dealing with others who they feel also have their interests at heart.” – Gerhard Hartman
I am using the above quote from Gerhard Hartman to kick start my write up on this interesting topic on the role of MFIs/MFBs and MSMEs in pursuing poverty alleviation efforts both nationally and globally. As we all know, the whole world is committed through the 2030 Agenda to making poverty history! SDG 1 makes us all accountable for this goal of poverty eradication.
Converting this commitment to action is a major challenge for us all. All available evidence point to the fact that MFIs/MFBs and MSMEs represent the instruments par excellence to achieving SDG 1. I believe this, having worked as a banker for some decades within Nigeria, I can tell you that conventional banks have little or no interest in these engine rooms of Nigeria’s economy nor for economic units at the Bottom of the Pyramid (BOP). Yet, many market researches and surveys show that MSMEs account for over 80% economic activities within Nigeria but are the still the least funded by conventional banks. This needs to be reversed. The opportunities that these institutions hold for positively impacting national development need to be exploited and optimized so that these can play their roles in growing our national economy and in furthering inclusive growth.
For MSME owners and operators, the good news is that most MFIs/MFBs in conjunction with some special packages engineered by FGN and international organizations have set up the necessary funding models to address their funding needs in a bid to create a level ground towards achieving no poverty and zero hunger level within our ecosystem.
The Centre for Research in Enterprise and action in Management (CREM) will be featuring Financial and Entrepreneur experts to unpack the entire business opportunities and challenges that SDG1 offers the business community in our country in interactive and learning sessions scheduled for October and November 2020.The sessions will also navigate the effects of the proposed 2021 Nigeria budget on MSMEs and businesses at the BOP coupled with the impact of the #EndSARs movement. On businesses these at triangular Business and Mentoring Clinic and Business Development Program slated for October and November 2020 respectively.
For further information on this, kindly visit CREM’s website : www.cremnigeria.org