 Welcome back, it's the Business Insights, some plus TV Africa. Now the Federal Government's plan to provide credit to 100,000 MSMEs has been loaded by analysts for its potential to support small business growth, like the Manufacturing Loan Scheme, analysts are however concerned about the 9% five-year facility due to the distortionary effect. A general mean now to discuss further on this development is the President of the Association of Small Business Owners in Nigeria, Aspen, Dr. Femi, Ed Beshela. Many thanks for joining me, Dr. Ed Beshela. Good morning and thank you for having me. It is indeed our pleasure. Let's start with the provision of credit to 100,000 MSMEs. Some people have actually described it as a step in the right direction. How do you react to that? Although some people are saying that the Federal Government should have explored the equity route through investment by the MSIA in eligible MSMEs and manufacturing companies instead of credit. What do you think, really? Well, I think it's a very good start from the governments. It's a sign that the governments actually feel the pains of the economy and particularly the engine of growth, that is the MSMEs. And coming up at the 18 with 9% interest rate is very interesting to quite a number of us. If you look around today, the interest rate of the banks is between 28 and 30%. Nobody can do business with that. So at 9% and payable in 36 months, I think it's a very good one and it's going to actually stimulate the economy in the long run. Another concern, really, is that 100,000 MSMEs is a drop in the quotient. But today, according to the statistics of SMEDAN and Nigerian Growth Statistics, we have about 40 million entrepreneurs, business owners in Nigeria. So the intervention is going to one part be on nano entrepreneurs, which is about 1 million entrepreneurs, and on MSMEs, which is about 100,000, that's 1.1 million entrepreneurs in the middle of about 40 billion. So the impact being very little, it cannot be very significant as we want it. But we hope that in the future, something more will come and there in part more on part a number of MSMEs. We are also concerned about the vehicle government want to use to disperse this fund. Over time, one of the challenges we have had is that government good intentions and policies falls in the wrong hands. At times, intervention goes to the hands of political business owners. So we are wondering how government want to go about this this time, such that it will get to the real business owner so that it can have the needed effect in the economy. We are also thinking that it's also good for government to begin to see how they can use the business environment so that if we not just funding that will be the intervention, we expect government to look at other critical areas as affecting ease of doing business so that for those who do not get funding, they will also have other areas where they can make up and come back to life because quite a number of businesses are dead now. I can tell you for free that about 20% of businesses have gone under in the last two and a half years and that's new good news. All right, it's a good thing that we talked about all the other measures the government can do aside from just funding and the grant or loans that it is provided. Also in passing, we talked about the one million nano businesses that will benefit between now and March. School of Thought believes that giving them about 50,000 each to them is actually really nothing if you're going to spread that across 774 local government across the country. But then again, what about the issue of 3,000 CNG fuel buses? In as much as it would impact on average Nigerian, it will also affect nano businesses. What are your thoughts, really? Come again, please. I said I want to get your thoughts concerning the 3,000 CNG fuel buses that the federal government is actually putting in the offering. I know that will somehow impact on nano businesses, but I really want to get your thoughts if you think it is a right step in the right direction. Yes, it is. It's the right step. It is going to reduce cost of transportation a lot. Quite enough of Nigerians, be it MSMEs and other average Nigerians, and engaging one form of transportation on the border. And public transport is of the majority. So coming up with CNG vehicles to his transportation is a good one, and I think it will also help to ease the tension in the country at the moment. But we're also looking at government bringing up other CNG vehicles that can be used by business owners. It's not everybody that goes to the public transport system. Particularly manufacturers would have to need their own vehicle to transport their goods and products around the country. So we wish that the government also extend this CNG vehicle beyond just the public transports to also provide vehicles that can be used by the general public. And we believe that with that, the cost of doing business will calm down before we save more money that will have spent on buying petrol and use for these CNG vehicles. And that also goes for generators. Quite a lot of small business owners depend on the petrol fuel generators. So if you have CNG generators around the country that business owners can use, it will also have to put down the cost of production, cost of doing business, and that will be good for us. All right, let's see if you mention manufacturing. Let's stay on that for a bit. There are plans for them, specifically 75 enterprises according to the president with great potential to kick-start a sustainable economic growth to accelerate structural transformation and improved productivity. Those are some of the words that he used. But the question right now would be the selection process. You also talked about MSMEs and how we're going to channel these monies to the right people. Now, 75 manufacturers, what do you really think are getting about 75 billion? Well, to start with, like I mentioned earlier, we should have also reiterated now, the selection process is key to us. We really want to know the criteria that governments will put in place for selection because it's not good to just put one billion in hands on. Someone will not make the best use of it, where we have millions of other businesses that can make very good use of this fund. We are also looking at the fact that the repayment period may not be too conducive for business. The repayment period, which is the working capital, is 12 months. I wonder what kind of business anyone will do today and get a support of one billion and be able to repay back in 12 months. That may not be feasible. So we expect governments this time to see how they can collaborate more with other stakeholders, particularly the business members of our associations and organizations, so that we can help them to tune some of these policies as much as they are. They are from gaps and loopholes here and there that we feel should be addressed. If actually the 75 billion gets to the 75 businesses is going to impact very maximally on the economy, we believe that in the next couple of months, six, 12 months, we should be able to see big impact in the economy. It should be able to create more jobs. It should be able to pull up the economy if and only if the money gets to the right hand. We are also interested in the monitoring of this process. The one thing is to give a fund for 75 large businesses. Another thing is to ensure that the fund is used for the intended purpose. So we're afraid that the government come out with a policy statement telling us about committees or other parameters put in place to monitor the funding of these nano MSMEs and the large businesses that will participate in these palliatives. It is important so that when this money is refunded back to government, it cannot go to the hands of newer people that may also need the fund. That is very, very important. And that's one thing that I've been missing in many of the intervention programs that governments have been doing over the time. Okay, fine. There is also the argument of government attending to some other challenges. In passing, you talked about high electricity costs and people having to fuel the generators through PMS. What about the issues of our import duties and cargo clearing logistics? How can that be or those be addressed? The challenges of MSMEs particularly is myriad in this country, it's just multifaceted. And these are some of the issues we are contending with. Even to get forex in the banks, it's a brilliant task. And in the black market, it's on a freefall every day. Quite a number of our input depends on forex. And when forex is not available or at a very high expense, it tells on the products because an average producer will pass the buck back to the consumers. And the consumers themselves already have their disposable capital eroded by the inflation in the country. And that means that that is why business has been stunted now. They are not growing. Prices are growing, going up every day. Electricity too is another big challenge that we are facing. Like I mentioned the other time, many of our members depend on petrol fuel generators. And when petrol prices go up, it also affects the cost of production. And it means that goods and services will always continue to go up when even the masses do not have the funds to pay for the former price, not to talk of the increased prices that we have in the market today. So we are looking at the intervention of government in this area. We're expecting government to also declare a state of emergency in the MSME sector as they have done in the food sector, such that some of these challenges will be addressed. Like I mentioned, one of the needs of MSMEs is not just funding. All we need is a right to business environment. If the environment is friendly, many of businesses will try. One of it that is the issue of this multiple taxation that you have mentioned, is the issue of not in the profitability of forests, is the issue of electricity and quite a number of orders. All right, just before we go very quickly now, Dr. Egbechela, food security government actually has declared a state of emergency in that sector. Let's talk about a Greek generally. In the short and medium terms, the federal government says it has released, or it is releasing 200,000 metric tons of grains, or grains from strategic reserves to households across the further six states and the FCT, to moderate prices, and 225,000 metric tons of fertilizer, seedlings, and other imputes to farmers. Let me get to comments concerning all of that. Finally. That's a very wonderful development. The basic need of every citizen of a country's food. So when you are able to serve food issue, you serve quite a number of problems. You serve close to half of man's need. And then coming to hear that government is coming up to open their warehouses to bring out grains, grain is one of the staple food we have. And there's so many value additions down to grain that is transformed to other kind of food. So it's going to bring down the prices of food automatically. We are also expecting government to come out with the consumer board, which will help to regulate prices of all different kind of foods we have in the country. We are also happy that in the speech of the president, they also mentioned that it's going to fund agriculture. Like you mentioned, bringing out seedlings, bringing out the land and the rest of it. Can you hear me? Yes, I can hear you. Go ahead. Finally, we are working opportunity now. Okay, then. So all of this is going to help us to grow the agricultural economy. And if agriculture is right, what a number of other things we're right. Many of our production also depends on inputs from the farm. So a lot of impotence is coming into this country because we are not sapping into the potentials we have in agriculture. Many of these input can be planted here, grown here, not on the added value tool here, and be used for production purposes. But because they are not here, we spend money importing them using our forex to exchange for forex, which is not right. So if this is actually done to the letter, I want to believe that in the next couple of months, our agricultural sector should be transformed. I'm also very big thank you to you. I have been speaking with Dr. Fermi at Beshelahe, the Easter President of Aspen. That's the Association of Small Business Owners of Nigeria. Many thanks for being a part of the show. Thank you very much for having me once again. It's a pleasure. Yes, a pleasure as well. And that's the size of the show for today. But just before we go to the event, Experience Africa, Texas has hosted major stakeholders, event professionals, creatives and business heads in the event industry since 2019 at a grand conference that sets the pace from eclectic here as a professional in the event industry. I'll leave you with details of that particular report. I am Justin Academia, I'll see you again next time. Bye for now.