World Bank Says Taxes, Corruption Major Constraint for Growth of MSMEs

Mr. Rachid Benmessaoud, World Bank Country Programme Director, Nigeria, has disclosed that survey has ranked access to finance, power, infrastructure, taxes and corruption as major constrain to the growth of Micro Small and Medium Enterprises in Nigeria.

Benmessaoud, who stated this during the launch of Business Innovation and Growth Big platform in partnership with Growth and Employment Project GEM, World Bank Group in Abuja, insisted that this project is aimed at stimulating job creation.

He said, “The government of Nigeria has identified security, job creation and governance as three key priorities. For job creation, its focus is on the need to create two million new jobs each year and it aims to do this through industrialization, public works and agricultural expansion and diversifying the economy away from reliance on oil revenues.

“GEM project is a major initiative aimed at stimulating job creation through the growth of specific high potential, non- oil sectors, ICT construction, entertainment and light manufacturing including agro processing, hospitality and tourism.

“It will also make resources available to help address some key constraints identified by business, with a particular emphasis on MSMEs, which are widely regarded as a vital engine for growth and job creation.”

“When focus is more on access to finance as constraint, the poor quality of business plan, financial planning and managerial capacity are often diagnosed as being significant factors behind the inability to attract or unlock finance.”