WELCOME ADDRESS BY THE DEPUTY GOVERNOR, ECONOMIC POLICY, CENTRAL BANK OF NIGERIA AT THE 7TH CENTRAL BANK OF NIGERIA (CBN) ANNUAL MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) CONFERENCE & D-8 WORKSHOP ON MICROFINANCE FOR SMALL & MEDIUM ENTERPRISES (SMEs) HELD AT THE TRANSCORP HILTON HOTEL, ABUJA ON 15TH AUGUST, 2013

Protocol,

  1. It is with great pleasure that I welcome all of you to this gathering on the occasion of the 7th Central Bank of Nigeria (CBN) Annual Micro, Small & Medium Enterprises (MSMEs) Conference holding jointly with the D-8 Workshop on “Microfinance for Small & Medium Enterprises (SMEs)”. This event presents a unique opportunity for stakeholders in the MSME sector from Nigeria and other D-8 member countries to interact and exchange ideas on contemporary, sustainable and effective financing solutions for MSMEs development in Nigeria. The theme of this year’s Conference, “Strategies for Achieving Sustainable MSMEs Financing”is at the heart of the any genuine development programme of Government as it holds promise for empowering many people to contribute their quota to development objectives. The events lined up for these few days provides a platform for the exchange of ideas among D-8 member countries to enhance their global competiveness and improve the general economic wellbeing of their respective citizens.
  1. MSMEs are engines of growth because they are a major source output growth, employment generation and innovation. In Nigeria, the sector faces the challenges of poor access to finance, inadequate electric power supply, poor transport systems, access to appropriate and affordable technology, effective managerial ability, unsteady supply of agricultural raw materials and under-developed markets all of which must be addressed.
  1. In order to support the aspiration of Nigerians to be among the top 20 world economies by the year 2020, I am pleased to report that majority of the challenges enumerated above are being addressed. The Central Bank of Nigeria in collaboration with stakeholders have initiated various financing programme targeted at agriculture, infrastructure and MSMEs, while government on its part has been undertaking steps to step up power supply, build roads and provide other basic amenities.
  2. In furtherance of the efforts, the country has designed and is implementing a number of policies and programmes to improve the business environment and upscale the capacity of MSMEs to thrive. Noticeable amongst these are the establishment by the CBN of six Entrepreneurship Development Centres (EDCs) in each geopolitical zones in addition to the 23 Industrial Development Centres (IDCs) under the purview of the Small & Medium Enterprises Development Agency (SMEDAN).This is aimed at building the capacity of youths in business management, skill acquisition and the promotion of self-reliance.
  3. Towards improving access to financespecifically, specialized financial institutions such as the Bank of Industry (BOI), Bank of Agriculture (BOA) and Nigeria Export-Import Bank (NEXIM) are being strengthened to enable them perform effectively, their intermediation role in the economy. Today, about 17.3 million MSMEs in Nigeria are contributing about 47% to the GDP compared with China’s (60%), Germany’s (57%), Japan’s (55%), Malaysia’s (32%), Egypt’s (80%), and Pakistan’s (30%) contributions to their GDP.
  4. Ladies and gentlemen, you will recall that Nigeria hosted the first D-8 Trade Ministers Council earlier in the year, with an agenda to implement the Preferential Trade Agreement (PTA) aimed at improving regional and international trade relations for sustainable inclusive economic growth amongst the D8 member countries. A major resolution of that meeting was the improvement of inter-D8 trade to an annual volume of US$500 billion by 2018. As a sign of commitment to small business development, Nigeria has signed an MOU with the Ostim of Turkey (OST of Turkey) to facilitate the establishment of industrial parks in each of the five states in the South-South geopolitical zone.
  5. Distinguished Ladies and Gentlemen, the need for a long-term MSME strategy as an imperative for national development cannot be over-emphasized. Therefore, I wish against this background to call on this eminent gathering of D8 experts, the Organized Private Sector, research institutions, regulators, financial institutions and the MSMEs to develop a workable template for sustainable MSME financing for that would be Nigeria and suitable for replication across the D8 member countries.
  6. On this note, I welcome you all to Abuja, The Federal Capital of Nigeria. I encourage you to take out time of the busy schedules of these few days, and enjoy the beauty of Nigeria and the warm offered by its people. I wish you all fruitful deliberations.

Dr. (Mrs.) Sarah Alade

Deputy Governor, Economic Policy

Central Bank of Nigeria

AUGUST 15, 2013

1