Economy

Most MSMEs Can’t Withstand Shocks—Olurotimi

Published

5 years ago

19/03/2021

By Adedapo Adesanya

Businesses may have suffered their worst year in 2020, but this year will see Micro, Small, and Medium Scales Enterprises (MSMEs) thrive if they work on all the lessons learnt and use them to adapt to the changing landscape, Mr Seye Olurotimi, the founder of MSMEs Africa, has said.

Mr Olurotimi, while appearing as a guest on TV Continental’s programme called Business Nigeria anchored by Mr Tolu Ogunjobi, which was monitored by Business Post, noted that small businesses do not have shock absorbers, which he said affected them when the global economy was faced with an unprecedented health crisis last year.

In his words, “MSMEs don’t have shock absorbers to withstand what the big corporates could absolve and when COVID-19 came and forced people to stay back at home, a lot of them didn’t have the infrastructure to run their services.

“It affected the way they made money. So, people could not make money, couldn’t meet their obligations, some have debts. Many have had to lay off their staff because they could not afford them.”

Mr Olurotimi noted that the recession that came with the situation led many to grapple with a lot as it made it harder for them to meet up with a lot of obligations.

FG’s interventions good

However, he commended several interventions from the federal government, which he said some have benefitted from. But he noted that the programme could not meet the demands of the over 40 million SMEs in the country.

Mr Olurotimi praised the payroll scheme of the federal government, which helped to pay workers and not business founders for a specified period, adding that the Guaranteed Offtake Scheme helped to provide funds to produce goods and also provided avenue’s to help them sell these goods.

While lauding these schemes, he advised the FG not to “just give people money” but should “train them on how to use them,” submitting that “for every intervention, let’s create a part that trains people on how to manage businesses so as to build capacity.”

He further said that despite the considerable improvement made as regards the movement of Nigeria in the ranks of global ease of doing business, there was more the country could do. Nigeria moved 15 places to 131 from 146 out of the 190 countries assessed by the World Bank.

He charged the Presidential Enabling Business Environment Council (PEBEC) to do more, explaining that the rate that businesses spend on electricity, rent and transport are not sustainable for business.

Suggests recommendations

Recommending effective measures that the Nigerian government can drive businesses, Mr Olurotimi suggested the creation of hubs for SMEs.

“When we say hubs, we mean like clusters for MSMEs where there is a 24-hour power supply and improved infrastructure so they don’t have to look outside,” he explained.

He added that the government should look to create hubs in different locations in the federation where people can have access to power and other needed structures.

“I think that would work, having hubs where all the factors of production or most are readily available and affordable.

“I also think the regulatory environment has to be friendlier. We have regulators like NAFDAC, SON, FIRS who have become unfriendly… so when the regulatory environment is suitable and friendly, SMEs will thrive.

He also added that the federal government needs to have policies that support capacity development, saying that factoring entrepreneurship into the country’s educational curriculum was not enough without the necessary outlets to practise.

Mr Olurotimi noted that policies like the Loan-Deposit Ratio (LDR) of the Central Bank of Nigeria (CBN), Finance Act (2020) and Companies Allied Matters Act (2020) deserved a pat on the back but people need to see more.

Outlook for MSMEs in 2021

Projecting what the year could hold, Mr Olurotimi said businesses would thrive following the copious challenges faced in the last twelve months on the condition they could leverage on technology and cut costs.

He advised the government to come to the aid of business not by interventions alone but by creating an enabling environment not restricted by unfriendly policies.

On the part of MSMEs, Mr Olurotimi said the pandemic saw people leverage technology and cut costs, and if they could build on these, they would be able to survive whatever shocks await.

He also charged SMEs to open up to the idea of open-source funding from venture capitalists, angel investors, among others, noting that the business trend of sole proprietorships is outdated and equity funding is where the world is driving towards, adding that business owners needed to improve on their creditworthiness by improving on their business characters.

Economy

NBA Demands Suspension of Controversial Tax Laws

Published

23 hours ago

24/12/2025

Modupe Gbadeyanka

By Modupe Gbadeyanka

The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.

In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.

A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.

To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”

“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.

It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”

“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.

“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.

“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.

“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.

Economy

MRS Oil, Two Others Raise NASD Bourse Higher by 0.52%

Published

1 day ago

24/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.

The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.

Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.

Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.

Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.

The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.

By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.

In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.

Economy

NGX All-Share Index Soars to 153,354.13 points

Published

1 day ago

24/12/2025

Dipo Olowookere

By Dipo Olowookere

It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.

The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.

Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.

Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.

At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.

This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.

VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.

In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.