According to the Nigerian Stock Exchange (NSE) and the Credit Bureau Association of Nigeria (CBAN), Micro, Small and Medium Enterprises (MSMEs) in Nigeria require, increased access to credit.
Mr Jude Chiemeka, Head, Trading Business, NSE disclosed that better credit reporting would boost MSMEs’ access to credit for their different projects while receiving the Chairman, CBAN, Mrs Jameelah Sharieff-Ayedun and other delegates during a visit to the NSE.
[READ MORE: FCMB and SystemSpecs sign MoU, launch a payroll solution for SMEs]
According to Mr Chiemeka, MSMEs play an important role in the development of the economy, which is evident based on the fact that they account for over 80% of businesses and more than 70% of employment in Nigeria. In spite of this influence on the Nigerian economy, MSMEs still find it challenging to access loans to grow and expand their businesses.
However, he retreated the NSE’s commitment in ensuring that the MSMEs, which he described as the engine room for Nigeria’s economic development, have access to long term finance as it has set in motion a framework to achieve this objective.
Meanwhile, in response, Mrs Sharieff-Ayedun stated that there was a need for the creation of a good and enabling business environment where MSMEs could have access to credit. According to her, this would add value to the economy, improve the country’s Gross Domestic Product (GDP) and also contribute to increase in employment and improved standards of living for Nigerians.
CBAN, which is a Non-profit business management organization created to promote good credit reporting culture for the expansion of the Nigerian economy, said remarkable progress on loan repayment by both corporate and individual borrowers had been recorded. It attributed the progress to the existence of the Credit Reporting Act.
[READ ALSO: CBN channels financial inclusion drive on women, MSMEs, others]
Mrs Sharieff-Ayedun also said that borrowers needed to be accountable to monies they collected, saying that CBAN has over the years, engaged in education and enlightenment on responsible borrowing.
