Monday, March 28, 2022 / 12:12 PM / by Ottoabasi Abasiekong for WebTV / Header Image Credit: Caladium 

The Federal Government was urged to provide special interventions to save Small and Medium Enterprises (SMEs) from collapse. Mr. Ayo Bankole-Akintujoye, the Convener, Lagos SME Bootcamp, suggested this while assessing the "Rising Cost of Diesel: Implications for SMEs in Nigeria." 

According to him, SMEs should receive tax waivers to reduce the rising cost of diesel and fuel on their operations. The business consultant highlighted that SMEs are groaning due to socio-economic issues, like high inflation, devaluation, and insecurity.  

He noted that this has resulted in shrinking revenues, closure of businesses, transferred costs to consumers, and rising worker layoffs.  He stressed that sectors like aviation, agriculture, logistics, manufacturing, and hospitality had been adversely affected by the energy supply issues.  

Bankole-Akintujoye urged the Federal Government to explore targeted sectoral interventions to salvage the SMEs and stabilize the economy. In addition, he believed it was time for Nigeria to fix the energy infrastructure that would insulate it from global shocks.  

Looking at the "Lekki Free Trade Zone," he called for proactive steps by the government to avoid another "Apapa Situation." He said in addition to the infrastructure network, a cargo rail line would ease the movement of goods. He said, "As a nation, we need to declare a state of emergency in infrastructure to address our socio-economic challenges."  

According to the Small Medium Enterprises Development Agency of Nigeria (SMEDAN), there are 41m MSMEs. Available data from the National Bureau of Statistics (NBS) shows that SMEs account for over 80% of employment in Nigeria and contribute 50% to the nation's Gross Domestic Product (GDP).