By Ngozi Nwoke
Joe Femi-Dagunro is the founder and president of Kosofe Chamber of Commerce and Industry, Lagos. In this interview, he explains the steps entrepreneurs can take in order to keep their businesses going in the era of technology. He also examines the numerous challenges facing both small business owners and industrialists including energy crisis, funding, tax burden, and what the government can do to make its policies less painful.
You have shown a passion for the promotion of Small and Medium Enterprises for which, we believe, you established the Kosofe Chamber of Commerce and Industry. Was it really necessary to set up a chamber of commerce when we have a bigger platform like the Lagos Chamber of Commerce and Industry?
It’s important to have a chamber that will not be defined by exclusivity but by inclusivity to bridge the gap of communication and strengthen the relationship between the government, most especially, at the local government level and business owners. The Chamber will also support in policy formulations and advocacy programmes; to provide educational training for the members and create networking opportunities, marketing and publicity platforms for business growth, among others.
The Kosofe Chamber of Commerce and Industry recently organised a business dialogue. What impact did you make with that event?
The Kosofe Economic Dialogue has brought businessmen and women from all the sectors of the economy together with government representatives at all levels, financial agencies, lawmakers, industrialists, top heads of chambers, economists and others to dissect prevailing economic issues, reason together to proffer solutions and set a new path for economic development at the local level and beyond.
It was not an elitist talk shop but an all inclusive event that is still generating positive feedback and successful follow ups. We hope to continue with more of such events and also create more business interactions during our quarterly Conversation Series.
How are the MSMEs within the local government responding to the formation of Kosofe Chamber of Commerce and Industry?
Looking at the overwhelming turnout of business leaders in the various sectors of the economy, young start-ups, government executives, leading bankers, legislators, business associations and the positive feedbacks of the recently concluded Kosofe Economic Dialogue 2024, we know that it was worth all the efforts put into the formation of the chamber. We believe that our upcoming programmes will generate more benefits and profitable businesses for members and the business community in general.
Businesses in Nigeria are currently suffocating. From your experience, what are the challenges of the MSMEs?
A lot of all these challenges are not new and are growing daily. Sometimes, it is how the government formulates and executes the policies without giving the business community enough time to prepare for alternatives. Take a look at increases in the energy and petroleum sectors and you will agree with me that most, if not all business owners were caught unaware. And the effects are glaring on the masses. I think the government should have given them enough notices as it’s being done in other developed societies and to have also provided financial support to businesses in a more balanced and coordinated way. Most of the tax policies and other government revenue generating sources are really frustrating and should be reviewed and executed with a better approach in line with the ideas of ease of doing business in Nigeria.
High energy cost is a major challenge for businesses and manufacturers in the country. How can this be addressed and overcome?
The energy issue should have been sorted out a long time ago if successive governments had been consistent with their policies and their execution. The government should have collaborated with the private sector in a better way to achieve this goal. Recommendations have been made to the government to include at least solar and wind energy in the production of sustainable energy; and to enlighten the masses on the benefits and long term profitability. Sometimes too, our investors are not patient enough to wait for long term investment yields.
The government should provide incentives for investors and create a peaceful environment for sustainability. It will surely take some time for these to yield fruits but we have to take the right steps now and avoid further delay.
What advice would you proffer to the federal and state governments on how to boost MSMEs and industrialisation?
Most times you hear that the governments are giving out loans and grants to the MSMEs but wouldn’t have clarity on the procedures. It’s not only the good intentions that matters but the actualisation of the process and how the success is being measured.
Loans and grants should be given to those genuine entrepreneurs that are properly screened and certified by their chambers and made to sign undertakings to utilize the money for strictly businesses that such loans are meant for. The Chamber will set up a monitoring committee to ensure that repayments are made and recycled for others to benefit from the programme. Businesses should be encouraged to set up multipurpose cooperatives for better disbursement and management of funds.
Commercial banks should be mandated to give loans to businesses operating with a turnover between N20 million – N50 million at rate of 10 per cent per annum with a moratorium of 60 days before the monthly loan repayments. Tax exemptions should be granted to new businesses for a period of 24 months after setting up.
What strategies would you recommend for addressing the challenges faced by micro, small, and medium enterprises?
Funding has been recognised as the biggest challenge of the MSMEs but I would advise that business owners should be involved in the new ways of doing business and be skilled in modern technology, most especially the AI programmes. The new technology will contribute to the success or failure of all businesses, beginning from now and not in future. It’s not just going to be the government policies alone. All business owners must place their business addresses and products online so that the internet search engine can help to boost their online and offline presence and also make recommendations to customers. They have to form marketing alliances to promote their products and services. SMEs should join Chambers to have better business networking ground and improved business skills.
What would you recommend to governments at all levels as a means of encouraging small businesses?
Funding is one of the banes of SMEs and the lack of skilled manpower. The banking industry should re-examine its policies on how to meet the needs of the small businesses in the country. We have a lot of theories and talks about funding, we have heard about a lot of disbursement of funds and grants but how many businesses have benefited from them and when? There should be transparency and data to support these efforts of the government. The Chambers of Commerce and Industry, the registered Cooperative Societies should be avenues to reach out to MSMEs in disbursing funds and better advocacy at the grassroots level.
The issue of government policy somersault and inconsistency are also there to contend with. But, just complaining and doing nothing to assist ourselves will destabilize our businesses. And that was one of the reasons for taking a new dimension to dialogue at the Kosofe Economic Dialogue event.
What is your general assessment of the economic policies of President Bola Tinubu?
I believe it will surely take a couple of years to get to where we want to be if we have good economic reforms and the right steps are being taken in the right directions. And these steps might not all be smooth in some cases. There should be more emphasis on transparency and accountability in the government. The masses should be well informed at all levels and be carried along in the formulation and execution of its policies. The government can’t do it alone but should provide a truly enabling environment for the citizens to live well and do their businesses. Foreign investors can only come into the country if the locals are thriving.