SMEs
SMEs And Yuletide Seasons
Christmas period is fast approaching. In the next few days, the entire country will be in a festive mood with the citizenry engaging in buying and selling for the yuletide.
Many operators of the Small and Medium Enterprises (SMEs) in the country have started stocking their shops with goods, mostly food items and Christmas gifts, in anticipation for yuletide patronage.
In this week’s edition of My Business, The Tide looks at the viability of SMEs during this year’s Christmas period, especially in the face of the recent lockdown occasioned by Coronavirus pandemic, the EndSARS protests and the new economic recession in the country. How have SME operators managed to stock their shops in preparation for the Christmas period and what are the chances of getting good patronage?
Our senior correspondent, Lilian Peters’ chats with some SME operators in Port Harcourt provide answers to these questions. Read on:
Pastor (Mrs) Joy Ezekiel Udoh of ‘Joyce Fashion’, said the sign of season sales were yet to be seen compared to the previous years.
She said, “ both the buyers and shop owners are complaining of lack of money in the system to even stock their shops.
“We only went to market to handpick small goods to keep the business going. Those that managed to buy did that on credit”.
She noted that the increase in price of fuel has further complicated the situation, as the cost of transportation of goods has gone up by 100 per cent.
The owner of ‘Joyce Fashion’ noted that the pump price of N170 per litre “is adding to the sufferings of the business men and women who have not even recovered from COVID-19 and #EndSARS losses.
“The situation is not funny, government needs to help the poor masses”.
A shoe dealer in Mile 3 Market, Diobu, Mr Uchenna Mgbeoji, said the year has already gone, “because COVID-19 changed everything in addition to the #EndSARS protest.
“Things are very expensive in the market and everybody is in trouble. By this time in the previous years, the season was at the peak for Christmas sales but now, the shops are empty because we do not have the money to stock our shops.
“The fall of Naira and the closure of Nigerian borders also contributed to what is happening to SMEs these days.
“SMEs manage to stay in business without making gains. How do you see business men and women staying at home for more than six months in the name of Coronavirus and #EndSARS protest?
“Remember that we paid shops and house rents, in addition to security and other fees. Now, schools have opened, how do we cope with all these problems?”, he asked.
The shoe dealer who also manages a fish pond said that the cost of feed has gone so high that the feed that used to cost N5,300 now cost N7, 300.
“In other countries like Dubai, government takes care of the people but here in Nigeria, the people take care of government which does not care whether you make gains or not”, he said.
The Managing Director of Bernice Boutique, Ewere Ochie, said, “I prefer the time of President Goodluck Jonathan when the Dollar was N170 with the Nigerian borders open for business.
“The prices of clothes are too high in the market, coupled with the transportation hike due to fuel increase.
“They said we are in second recession, as if we had ever gotten out of the first one. This government has failed us. We are only living by the grace of God.
“All we see (hear) are promises upon promises without the fulfillment. Since President Buhari took over office, l have not travelled out of the country to buy clothes for my boutique”.
Bernice Boutique Director said that there was no basis for comparison between this year’s Christmas period and the previous ones in the face of recent COVID-19 pandemic and the #EndSARS protest, which according to him, affected the economy and livelihoods.
“Most people lost their jobs during the COVID-19 pandemic and even borrowed money to pay school fees for their children. So, which one would they use for clothes?
“Sometimes, we open from morning till night without anybody coming to ask for even prices. It is that bad.
She said that SMEs operators, in addition to the cost of running business, suffer the payment of different fees to different bodies who often come to embarrass them.
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has reviewed the selection process for beneficiaries of a N5billion credit facility allotted, meant for small businesses in the country.
With the new procedure, the agency has mandated the submission of Corporate Affairs Commission (CAC) certificate and Tax Identification Number as a compulsory requirement to obtain the loan.
The Head of Corporate Affairs, Moshood Lawal, SMEDAN, made the disclosure during an interview with our correspondent recently in Abuja.
According to the report,last year SMEDAN signed an agreement with Sterling Bank to disburse loan options ranging from N250,000 to N2,500,000 at a single-digit interest rate of nine per cent, to facilitate the growth of small businesses through enhanced financial access.
The credit, with the target to assist over 10,000 Small and Medium Enterprises (SMEs), has a duration period of 12 months, to enable small businesses to leverage the facility fully.
Speaking at the signing ceremony, the SMEDAN’s DG, Charles Odii, described it as “an important milestone in our efforts to stimulate economic growth and drive prosperity by enhancing SME access to finance.
“We believe that the financial support, which comes at a very competitive rate, will help SMEs expand operations, hire additional employees, and contribute to an overall upswing in beneficial trade and economic activities”, he said.
But giving an update on the issue four months after, the spokesperson said a software application had been developed to smoothen the process and limit human interference on the credibility of the process.
He added that submission of CAC certificate and tax identification number was needed to identify fake applicants and ensure the fund is given to the right persons.
He said, “Concerning the N5bn loan for small businesses, We have developed an app and it is ready now. We are now taking submissions via the software application. Everyone is expected to download it, put in their business plan and every other detail. Then, they would be evaluated on the app.
“We had to move to an app to avoid human interference because almost everyone had a brother or a sister who tried to influence the process. So, it is better to register via the application, upload the Corporate Affairs Commission certificate, Tax Identification Number and other necessary documents.
“Once that process is fulfilled, the request will be evaluated and those qualified will get a reply immediately but if we had continued with former procedure, the process may be influenced.
“We also noticed that most applicants do not have their CAC certificate and that is a very important document to be submitted.
“Some persons have claimed not to have these certificate but we have insisted that it would be a very important criteria to receive the loan or they would be ineligible. We have promised to be transparent about this initiative and that promise will be kept”.
On the status of applicants who had registered earlier, Moshood explained that those applicants must start the process again using the newly developed app in order to be considered for disbursement.
“Everyone that initially applied for the grant would have to do it again. During the former procedure, they were not asked serious questions, they were only told to register but now we are asking specific questions on how the money will be utilised, the business turnover per month. It is via those questions we will be able to sort out real businessmen and fake ones”, he stated.
According to the report, over 200,000 small-scale businesses had earlier signified their interest to obtain the credit facility with successful applicants receiving emails from the bank.
The alarming rate of small scale business mortality in the country has been a reoccurring issue with the SMEDAN DG revealing that around three million businesses were lost due to varying factors such as insecurity, fraud, global competitiveness and lack of ease of doing business in the past few years.
Financial experts had expressed the view that with improved access to finance, more small business will become drivers of economic progress and important contributors to employment as well as economic and export growth.
As the economic condition continues to bite, a group of young entrepreneurs has extended support to some vulnerable Nigerians via a feeding scheme.
The group said in a statement that the initiative is aimed at providing nourishment to those in need, while drawing inspiration from the teachings of Jesus Christ.
A total of 820 individuals benefited from the programme, enjoying a diverse menu which included Chinese spaghetti, jollof rice, white rice, fried rice, and various soups.
The group from the Redeemed Christian Church of God Youth Church in Ikeja, Lagos, said the act reflects the commitment of the young entrepreneurs to make a positive impact on their community and address societal needs.
The initiative aligns with the Christian Social Responsibility mandate advocated by The Redeemed Christian Church of God, which emphasize the importance of demonstrating love and compassion to uplift communities and individuals.
Part of the statement reads, “The gesture is also in line with the Christian Social Responsibility mandate from The Redeemed Christian Church of God as a mission to meet societal needs through the demonstration of love that positively impacts communities and individuals to make a meaningful mark on the lives of individuals and families, spreading hope and nourishment in the community which is done at least once a month.
“This was led by the Provincial Youth Pastor of Province 1, Pastor Bisi Akande alongside Pastor Femi & Life Oyewunmi, Pastor Shola & Derayo Oladejo and Pastor Leke Adeboye & Titilope Adeboye”.
The Nigeria Customs Service (NCS) has deepened its relationship with its Benin counterpart in enhancing trade.
This follows a meeting held last Thursday between a deligation led by the Comptroller-General of Customs (CGC), Bashir Adewale Adeniyi, and his Republic of Benin counterpart at the Director-General of the Customs Administration of Benin Republic to strengthen collaboration between them.
The primary focus of the meeting, as outlined by the Customs boss, was to deliberate on strategies aimed at amplifying trade activities between the two nations and ensuring the seamless implementation of recommendations previously discussed during their rendezvous in Cotonou.
Highlighting the significance of the collaboration, the CGC said, “We are cognizant of the established framework for cooperation between our respective customs administrations.
“This framework was established at a higher level by the authorities of the heads of State, President Patrice Talon of Benin, and His Excellency President Bola Ahmed Tinubu of Nigeria, both expressing a desire to work together.
“It is upon this foundation that the Customs of both countries are united in their efforts”.
The Director-General of Benin Customs Administration, Mrs Adidjatou Hassan Zanouvi, in her remarks reiterated their steadfast commitment to executing the mutually agreed-upon measures.
Mrs Zaniuvi emphasised the importance of thorough monitoring to ensure effective implementation.
She noted that collaborative endeavours between the Nigeria Customs Service and the Benin Republic Customs Administration serve as a testament to their shared commitment to facilitating seamless trade operations and ensuring the efficient management of cross-border activities for the mutual benefit of both nations.
The CGC seized the opportunity to inspect ongoing projects within the Nigeria Customs Service, Seme Area Command.
He was accompanied by the Customs Area Controller, Seme Border, Comptroller Timi Bomodi.
By: Nkpemenyie Mcdominic, Lagos