Dr Samuel Nzekwe, a former President, Association of National Accountant of Nigeria (ANAN), has called on the Federal Government to intensify efforts in providing stable power supply to enable Small and Medium Enterprises (SMEs) to thrive.
Nzekwe made the call in an interview with newsmen on Friday in Ota, Ogun.
According to him, SMEs have not been able to thrive inspite of the intervention of the Federal Government and states.
He said infrastructural deficit had been the major factor militating against the growth of SMEs in the country.
“The Federal Government urgently needs to bridge the gap of infrastructure for SMEs to thrive in the country,’’ he said.
The expert urged the Federal Government to redouble efforts by providing good infrastructure like electricity and roads that would enhance and boost the performances of SMEs.
The former ANAN president also stressed the need for banks to provide long term loans at low interest rate for SMEs.
He said that the provision of short term loans with high interest rate as provided by Nigerian banks would not help SMEs.
According to him, this is because it takes some time for SMEs to start manufacturing goods.
Nzekwe further advised the Federal Government to give incentives to SMEs in terms of minimum regulatory requirement.
Dr Titus Okunrounmu, a former Director, Budgetary Department, Central Bank of Nigeria (CBN), also said poor infrastructure was responsible for the poor performances of SMEs.
He described SMEs as the bedrock of any nation in achieving sustainable economic growth.
“It is more difficult for SMEs to thrive in an economy where there is inadequate infrastructure for development,” he said.
Okunrounmu noted that goods produced by SMEs could not compete with their international equivalent because of the high cost of production.