Economist Advises FG To Create Special Bank For SMEs

An economist, Dr Ifeanyi Asogwa, has called on the Federal Government to create a special bank for Small and Medium Enterprises (SMEs) in Nigeria to propel efficiency in the sector.

Asogwa, who spoke on the importance of SMEs to the nation’s economy said “SMEs sector is the major driver of the economy”.

According to him, it has the capacity to sustain the nation’s macro-businesses.

“If you want money from the regular banks, you hardly get it. There is, therefore, need for a special bank to give out facilities to SMEs.

The financial expert said that the unavailability of special bank had impaired the smooth running of SMEs in the country.

Why Nigerian SMEs need special bank

“SMEs sustain almost all the multinationals in Nigeria. It is the SMEs that supply them with most of their operational tools,’’ he said.

“Most of these SMEs, after supplying sand, water, and also other raw materials to macro-businesses, hardly get their money on time.

“Sometimes, it takes up to one, two, or even four years and above for them to get their capital.’’

He, therefore, urged government to pull resources together in order to support and protect the SMEs’ scheme in Nigeria.

Asogwa, however, reiterated the need to capture the data of all the SMEs in the country for economic prosperity.