By Fatima Muraina & Akinnodi Francis

Hash economic environment and lack of access to capital fuelled by inability of government to provide palliatives to Small and Medium Enterprises (SMEs) have led to the collapse of over half of the SMEs in the country, The Hope has learnt.

Investigation by The Hope revealed that SMEs play crucial roles in the nation’s economy, driving innovation, job creation and economic growth.

As important as this sector is, as one of the major drivers of the nation’s economic growth, they are facing huge operational costs that stunted their growth and sustainability.

Economic experts who spoke with The Hope explained that unstable power supply, poor road networks and limited technology access, also hamper the productivity and efficiency of SMEs in the country leading to increased costs and other operational challenges.

The experts suggest that government at all levels must implement business friendly policies that would create a more favorable business environment for SMEs, saying all these, if put into consideration, would make SMEs prosper, unleash their potential and contribute to Nigeria s economy.

An expert, Dr. Emmanuel Adenegan, said that government should establish special funds and initiatives that will provide affordable loans, grants, and guarantees explicitly targeted at SMEs.

He said government should invest in infrastructural development to improve power generation, upgrade transportation networks and expand access to reliable internet connectivity, describing these as very essential to the growth and development of SMEs.

“Government agencies and associations should provide SMEs with market intelligence, trends, and research insights to identify opportunities and make informed business decisions. To overcome limited market access and competition, these solutions can be implemented,” Adenegan added.

An economist, Dr Tawio Owoeye urged government to provide incentives, support and simplified procedures for SMEs to participate in international trade and explore export opportunities.

Owoeye added that government should review and simplify regulations and administrative processes and reduce bureaucratic hurdles for SMEs.

Ondo State Chairman of the Nigerian Association of Small Scale Industrialists (NASSI), Great Seyi Akintunde, urged government at all levels to ensure the workability and survival of SMEs, saying they are the one boosting the economy for now.

“The SMEs are the ones providing the food we are eating, they are the ones providing the shoes, clothings and several other things and if these are not in place, the economy will collapse,” he declared.

According to Akintunde, the SMEs are collapsing due to high operational cost occasioned by transportation, cost of raw materials, cost of fuelling and several other challenges considering the fact that they are small scale industries which lack  fund to enhance their industries in the small enterprises subsector of the economy.

He expressed dissatisfaction that the SMEs were not considered on palliatives given to cushion the effects of fuel subsidy removal which he noted should have been in form of loan for them to be able to work.

He called on government to be proactive about power supply, saying that it is one of the major reasons why some of these small scale industries are collapsing.

The Coordinator of Ondo state chapter of the Small Scale Women Farmers Organization in Nigeria, Mrs Grace Bukola Oyediji, also charged government to give necessary financial support to SMEs.

According to her, the country needs industries that can be sustained which will open employment opportunities for youths and women either in agriculture or any other area.