Dike Onwuamaeze
Nigerian Micro, Small and Medium Enterprises (MSMEs) who are desirous to export their products have been advised to exploit the services of regulatory agencies that are established by federal government to ensure that their products are received in foreign markets.
This advice was given in Lagos by the representatives of the Standard Organisation of Nigeria (SON), National Agency for Food, Drug Administration and Control (NAFDAC), Nigeria Export Promotion Council (NEPC) and the Bank of Industry (BOI) during the Nigeria British Chamber of Commerce (NBCC) workshop on, “MSME Business Optimisation Clinic Agenda.”
They urged Nigerians that desired to launch into export business to approach them for guidance on certification, standardisation, financing and provision of incentives that would enable them to make their export oriented businesses a success and win coveted foreign exchange for Nigeria.
According to the Director General of SON, Mr. Farouk A. Salim, SON has products that would help Nigerian MSMEs to satisfy the standard required by their export destination countries, adding that they should approach the agency to interpret the standard requirements of the countries they wish to export their products to avoid rejection.
Salim, who was represented by Head, SON’s SME Desk, Mrs. Phebean Arumemi, said: “Every country is conservative about what comes into its market to help protect their security, health and safety. One instrument a country can use to limit what comes into its territory is standard. If you do not package very well your product will get rejected.
“You must understand that we have a body in Nigeria that is created and funded by government to ensure that Nigerian products are well marketed abroad. SON is a supporting organisation and covers all scope of requirements that are needed to enable your export. Our aim is to help businesses to produce and sell their products successfully and not to discourage them. Nigeria needs foreign exchange and we interface on behalf of Nigeria in every international, continental and regional organs for standard development and certification to ensure that Nigeria maintaining international best practices.”
Speaking in the same vein, the Chief Executive Officer of NEPC, Dr. Ezra Yakusak, who was represented by theNEPC’s Chief Trade Officer (South), Mrs. Patience Afanide, said that Nigeria MSMEs could sell their products everywhere in the world as long as they are able to follow standards and excellence.
“They have to look at the regulations of the country of trade they want to engage. We can hold them by the hand and guide them on market access, packaging, and even provide mentorship for those who know nothing about exports but want to enter the terrain,” Yakusak said.
He urged the MSMEs to register with NEPC to be able to participate in its stakeholders’ meetings where issues facing various sectors of the economy are discussed. We also encourage value addition.
“Sectors like music and fashion that require minimal certification are low hanging fruits for Nigeria. But they must be registered for us to have their details and create workshop training for them.
“We provide incentives for exporters that have attained certain level and rebates to trade fairs and shows so that they will learn from what their competitors are doing and be able to improve their products,” he said.
Similarly, the Managing Director of BOI, Mr. Olukayode Pitan, who was represented by the Head of Business Development, Mrs. Aderonke Akinluyi, said that the BOI finance businesses with regular cash flow and ability to repay the loan.
“Our loan is the best priced in the market today. Inflation is at 18.7 per cent and we are lending at 10 per cent. And because we are development financing institution we provide patient capital for about five year period or more. Machinery equipment financing is at least five years. We can also provide working capital at between 12 and 14 per cent,” Pitan said.
He also said that BOI provide consultants that help SMMEs to write bankable business plan.
“We provide facility of N10 million or less on character lending without collateral as long as the borrower can find guarantors. So, we are not asking you to bring your landed property or anything like that as long as your business is bankable and viable. We also partner with other development institutions to bring benefit to Nigeria like the World Bank matching grant for women,” he said.
The Director General of NAFDAC, Professor Moji Adeyeye, who was represented by Mrs. Sarah Ajayi, a deputy director, said that “NAFDAC does not stipulate standards but ensures that already established standards by SON are complied to.
“We have officers that are ready to guide and assist MSMEs that want their products registered. We have regulations for those that want to export or distribute products within the country.
“The MSMEs pay 50 per cent of the charge paid by bigger companies. We have also helped the MSMEs to enjoy expatiated lab analysis. We have also established helpdesk for micro businesses in our state offices where our officers will them on compliance issues. It is compliance that causes delay in getting NAFDAC’s approval.”
