Last weekend, the federal government unveiled the newly approved Revised National Policy on Micro, Small and Medium Enterprises (MSMEs)for 2021-2025.
The Director-General of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Dr Umaru Dikko Radda, said the document would be a guide in repositioning the nation’s MSMEs for improved performance within the next five years.
Radda said the new document, which promises complete access to finance, came into force after several consultations and engagements with relevant stakeholders.
Here are few things every entrepreneur needs to know about the document:
1. Classification of MSMEs by assets: The use of assets to classify MSMEs instead of turnover. The reviewed document changed the departure from assets to turnover in classifying MSMEs, with several reasons to justify this, including inflation and naira depreciation.
2. Nano/Homestead and micro-enterprises: The new document split micro-enterprises into two subgroups – Nano/Homestead and micro-enterprises.
3. Finance: The new policy identified some key areas requiring sustained efforts in developing MSMEs in Nigeria. Finance is one key challenge identified. The policy objectives regarding finance are to effectively address the challenges of financial access to create, operate and expand viable MSMEs.
4. Creation of wholesale banking institution: The policy recommends the need to harmonise all existing interventions schemes, create an information portal for them, and create a wholesale banking institution for MSMEs funding.