The Nigerian Stock Exchange (NSE) and the Credit Bureau Association of Nigeria (CBAN) have renewed the call for access to credit facilities by Medium, Small and Micro Enterprises (MSMEs) to unlock their growth and development.
The Head, Trading Business, NSE, Mr. Jude Chiemeka, while receiving CBAN delegates, led by its Chairman, Mrs. Jameelah Sharieff- Ayedun, at the NSE head office in Lagos, during the week, said MSMEs needed an improved credit reporting to access capital for various projects.
According to him, the MSME sector is the backbone of major developed economies, as well as an important contributor to employment, economic and export growth. He said MSMEs accounted for over 80 per cent of businesses and more than 70 per cent of employment in Nigeria.
Chiemeka added that, despite the significant contribution of MSMEs to the economy, challenges still persist that hinder their growth and development, as they find it difficult to access credit to expand and grow their business.
He, however, said the NSE remains fully committed to ensuring that the MSMEs, which he described as the engine room for Nigeria’s economic development, have long term access to finance as it has set in motion a modality to achieve this objective.
Responding, Mrs. Sharieff-Ayedun, who is the managing director/CEO, Credit Registry, Mrs. Sharieff-Ayedun, said there was need to promote and encourage MSMEs by providing an enabling environment where they can have access to affordable credit.
This, she said, would add value to the economy, improve the country’s Gross Domestic Product (GDP) and correspondingly contribute to more employment and improved standards of living for Nigerians.
According to her, Nigeria has witnessed a tremendous improvement on loan repayment by both corporate and individual borrowers, attributing this to the existence of the Credit Reporting Act in the country.
She added that borrowers needed to be accountable to credit they collected, saying that CBAN has, over the years, engaged in education and enlightenment on responsible borrowing.
According to her, the Sixth National Credit Reporting Conference, a yearly flagship event of the association, holding tomorrow, would discuss the accessibility of credits by the MSMEs and other issues relating to responsible borrowing.
The event, which will hold in Lagos, will have Lagos State Governor Mr. Babajide Sanwo-Olu and the Central Bank of Nigeria Governor, Mr. Godwin Emefiele, as Special Guests of Honour.
Mrs. Sharieff-Ayedun said the conference would discuss the need to evaluatie MSMEs to unlock further growth of the sector.
She added that such evaluation would assist in attaining a status report on the level of impact of the funding and other support strategies on the target recipients.
It would also aid in driving policy assessment, redirection and formulation going forward, especially in this economic climate.
CBAN is an incorporated not-for-profit and non-governmental business management organisation formed to promote a credit reporting culture towards the expansion of Nigeria’s economy through its values.
Members of the association are the licensed private credit bureaux, including First Central Credit Bureau, CRC Credit Bureau Limited and CR Services Credit Bureau.
CBAN promotes the use of credit information, access to finance and the success of members and stakeholders through advocacy and capacity building, among others.