SMEs
SMEs And Harsh Economic Situation ln Education Industry
The harsh economic situation in the country has become a source of worry to Nigerians, as many now live below the poverty line.
To many families, only those who are alive think of education, so parents prioritise between sending their children and wards to school to learn and become future leaders and feeding to live till the future comes.
The Tide’s went to town to see how Small and Medium Enterprises (SMEs) in the education industry are coping with the situation.
Read on .
The Proprietress of Brave-Brain Academy, Mrs Nwaichi Princess Daberechi said, “there is massive withdraw of children from the private schools to government schools due to the inability of parents to meet up with financial demands.
“Also, so many children are in their houses not attending private nor government schools because things are generally very difficult”.
Mrs Nwaichi noted that parents that formally pay their children fees with ease only survive the strategy of paying many times throughout the term.
To the proprietress, there is need for government’s intervention to alleviate the suffering of the masses. “The leaders should do something about the devastated economy of the country.
“Government should also upgrade our curriculum, hunt the out of school children making sure that they are back to school, put good policies in place that will better the education sector”.
Brave-brain proprietress who said she has been in the system for over ten years now, noted that one cannot compare the present rate of progress in the school system to what it has been before.
To the Proprietress of Biddi International School, Mrs Bridget Eze, “comparing the growth of the school in the time past and now, it is very obvious that the time past is better than today. Most parents cannot conveniently feed their families twice a day let alone paying their children’s school fees.
“I started teaching as far back as 1988 as a classroom teacher. I have also headed both the nursery and primary sections as an employee before establishing my own school ten years ago. Things are difficult now.
“ The economic situation makes it almost impossible for school owners to make profit. As a medium enterprise I want to say that we are not making profit as supposed.
“The reason is because the parents who are our number one customers are adversely affected by the economic situation in the country”.
She said that some parents lost their jobs during the Covid-19 pandemic and those of them in different businesses are not making gains like before, “while some shops are even closed down”.
On the way forward for the school system, she said, “talking about what should be done as a solution, there should be a general overhaul of the entire system starting from the top.
“security situation of the nation should be properly addressed, devaluation of naira and high level of corruption in the society should be dealtwith by leaders who must become sincere themselves”.
The Proprietress noted that the economic situation of the country has affected every sector, not only the school system.
A teacher in one of the private schools, Excel Education Centre, Mrs. Azubuike Joy Chimezie said that the poor economic situationin in the country has affected the rate of the growth of the schools.
“The growth rate has dropped drastically due to poor economy and low income of some families compared to when the situation was better. Some parents even withdrew their children or wards from good schools to quacks not minding if they are getting the basic knowledge or not due to financial constraints.
“We know generally that the times are hard but it is heartbreaking that only the politicians and highly connected business persons are making it, while the poor are getting poorer. It affects the payment of school fees, she added.
She said the “situation affected their school once like that, so the school used a strategy of reducing the school fees and advertised a free registration of students. This opened a door for inflow of pupils. This brought more students into the school as they pay for other fees and school fees. It went a long way to boost the number.
Mrs. Azubuike who has been in the school system for 21 years now said school owners no longer make gains like before and this accounts for why some private schools owe their teachers, adding that even some parents are heavily indebted to their children’s schools.
“I suggest that government should pity the poor masses and find a way of cubbing poverty rate in the country. The leaders should ensure that both private and government schools are properly equipped . The country has all it takes to do that but their selfish interest would not allow them use the God given Nigerian natural resources to benefit the poor masses”, she said.
My Business with Lilian Peters
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
