Corruption, others stifle MSMEs’ growth, says World Bank

Corruption, others stifle MSMEs’ growth, says World Bank

The World Bank Country Programme Director, Nigeria, Mr. Rachid Benmessaoud yesterday said survey has ranked access to finance, power, infrastructure, taxes and corruption as major constraints to the growth of Micro Small and Medium Enterprises.

Benmessaoud spoke during the launch of Business Innovation and Growth (BIG) platform in partnership with Growth and Employment Project (GEM) World Bank Group in Abuja, stating that the project is aimed at stimulating job creation.

He said: “The government of Nigeria has identified security, job creation and governance as three key priorities. For job creation, its focus is on the need to create two million new jobs each year, and it aims to do this through industrialisation, public works and agricultural expansion, diversifying the economy away from reliance on oil revenues.

“GEM project is a major initiative aimed at stimulating job creation through the growth of specific high potential, non- oil sectors, ICT, construction, entertainment, light manufacturing including agro processing, hospitality and tourism.

“It will also make resources available to help address some key constraints identified by business, with a particular emphasis on MSMEs, which are widely regarded as vital engine for growth and job creation.

“When focus is more on access to finance as constraint, the poor quality of business plan, financial planning and managerial capacity are often diagnosed as being significant factors behind the inability to attract or unlock finance.”

The County Director said, the online platform will be the main channel through which GEM assistance is made available to MSMEs, building the capacity of firms and helping them to organise, in order to facilitate better access to finance.