- Vice President Shettima applaud DBN’s credit schemes, intervention
BY EDMOND ODOK – Experts and critical stakeholders are backing increased digitalization and technological innovation to optimize Micro, Small and Medium Enterprises (MSMEs) operations for effective service delivery and contributions to Nigeria’s socio-economic growth and development.
Harping on driving sustainable business growth through modern technology, they also described MSMEs as pivotal for national economic growth, and job creation.
For them, by leveraging technology in their daily operations, businesses can improve their efficiency, which currently constitutes one of the major roadblocks to doing business in the country.
These were submissions made at the Development Bank of Nigeria Plc (DBN)’s 4th Annual Lecture Series held in Abuja and attended by an array of small business owners and beneficiaries of DBN credit schemes from across varying sectors of the economy.
Leading the charge, the Director General of National Information Technology Development Agency (NITDA) and Keynote Speaker at the event, Mallam Kashifu Abdullahi emphasized the importance of digitalization in driving sustainable economic growth and enhancing the ease of doing business for MSMEs.
Abdullahi, who spoke on the lecture theme, “Digital Nigeria – Leveraging Technology to Improve Ease of Doing Business for MSMEs”, highlighted the significance of MSMEs, noting that they constitute about 96 percent of all businesses nationwide.
Further explaining that the MSMEs contribute 49 percent to the national Gross Domestic Product (GDP), and employ 84 percent of the country’s workforce, the NITDA boss said the government is focused on providing an easy online business registration process, compared to the previous requirements where individuals had to visit Abuja for the same purpose.
Hear him; “MSMEs that have embraced digitalization and technology tend to fare better, and that underscores a study done in Turkey which shows that 41.2% of 131 SMEs underwent technological innovations, and this led to an operational efficiency of 96.9%.”
“As a government, we have the responsibility to carry everyone along, especially when it comes to inclusivity or access to digital infrastructure, it is no longer a privilege but a necessity”. He stated.
Furthermore, he said; “We are rounding off with legal framework that will make it easier for investors to come and invest in digital public infrastructure because this will make it a lot easier for SMEs as well aid the automation of governance”.
Also addressing the Forum, Vice President Kassim Shettima affirmed the President Bola Tinubu-led administration’s resolve to create an enabling environment for businesses to thrive, adding that several initiatives have already been launched by the government to support small businesses and entrepreneurs.
Senator Shettima, represented by the Special Adviser to the President on Economic Matters, Tope Fasua, noted that “already, policies such as streamlining the process of registering businesses, reducing taxes and other regulatory burdens, improving infrastructure and providing access to finance have been implemented to improve the ease of doing business in Nigeria.
“Also, the Youth Entrepreneurship and Innovation Program (YEI), the Government Enterprise and Empowerment Program (GEEP), and most recently, the 3MTT program, which is a critical part of the Renewed Hope Agenda, will help build Nigeria’s technical talent backbone to power its digital economy and position Nigeria as a net talent exporter. These initiatives will go a long way to boost MSMEs’ capacity while creating jobs and opportunities for all Nigerians.”
The Vice President, while backing the position canvassed by NITDA’s Chief Executive, also praised DBN for the impressive strides in building a more diversified and resilient economy, given its huge support to MSMEs in terms of access to finance through financial inclusion in the past six years.
He said; “The bank has developed several innovative financial products and services that are tailored to the needs of underserved communities. This has helped to bring more Nigerians into the formal financial system.
“These achievements align perfectly with His Excellency, President Bola Ahmed Tinubu’s 8 priority areas of ending poverty, achieving food security, economic growth and job creation, access to capital across all segments of society and the economy, inclusivity, security, fairness and rule of law, and anti-corruption, all of which are tied very closely to the activities of MSMEs”.
For the Managing Director and Chief Executive Officer of DBN, Dr Tony Okpanachi, the transformative impact of the internet on human interaction and commerce cannot be ignored.
Okpanachi, while acknowledging the challenges of security and poor infrastructure in Nigeria, stressed the need for technology and a digitized business environment to overcome existing and emerging obstacles.
Also highlighting the crucial role of MSMEs in Nigeria’s economic growth, Okpanachi amplified their contributions to poverty reduction, employment creation, and shared wealth, maintaining that leveraging technology within MSME operations would enhance efficiencies, and effectively address one of the key obstacles to doing business in Nigeria.
According to him; “DBN, as a key advocate for MSME financing and a driver of sustainable development, recognizes the vital role of technology in Nigeria and thus will continue to promote solutions that unlock innovative funding for MSMEs, in a way that finances a sustainable future. Similarly, the Bank will continue to drive creativity that focuses on improving our position on the Ease of Doing Business (EODB) ranking.
“I must state here that at DBN we specifically understand the potential of the IT sector to transform the Nigerian economy, and since 2021, we’ve hosted the annual Techpreneur Summit as a platform to facilitate technopreneurship, enhance their ability to access debt finance and sensitize them on the various types of debt funding available.
“Through the Techpreneur Summit, DBN continues to provide leadership on efficient fund utilization, business process optimization, product-market fit, mentoring, and ultimately, profitability”.
He labeled the DBN’s Annual Lecture Series as a platform that advocates for MSME financing in Nigeria, leading the conversation on how technology can drive innovation, resilience, and profitability for MSMEs.
“As a key advocate for MSME financing in Nigeria, DBN continues to lead the pack in providing thought leadership on issues relating to sustainable growth for businesses in the context of the green economy and other broad initiatives”, the Bank’s Chief Executive said.
The fourth DBN Annual Lecture, a hybrid event marking the Bank’s sixth (6th) anniversary, featured keynotes and panel sessions, where facilitators shared their perspectives on driving sustainable business growth with technology that adapts to a green economy.
Also, the occasion drew speakers from various subject matter expertise, comprising the public sector, academia, development economics, financial services, and entrepreneurship.
