The elections and swearing-in are over, and also, the
tension, anxiety and excitement generated by the process are gradually fading
out. What is trending now is the avalanche of expectations and advices coming
from all directions, with few realistic ones, while majority of the opinions
are idealistic. Kaduna state being the then administrative capital of the
north, and now its unofficial political capital, is of interest to many. For
reasons of being the third most populated state in the country, and also, it’s
cosmopolitan make-up. It is largely believed in many circles that the state has
not fared well under the People’s Democratic Party (PDP) over the past sixteen
years. This is more so, when one considers the huge allocation that accrued to
the state all these years and also the economic potentials of the state without
commensurate development.
Unfortunately, the economic potential of the state has not
been robustly exploited with the consequences being an
unemployment rate of 25.7%, well above the national average of 23.9%. While as
for the poverty rate, it is put at 52.4% as core poor, and 38.2% as moderately
poor; the second highest incidence of poverty in the zone just behind Zamfara
State. The coming of the new administration under the All Progressive Congress
has the burden of excessive expectations to grapple with in upturning the state
of underdevelopment that has been inflicted on the state.
Meeting the
expectations of residents of the state has been made more herculean for the
administration of Mallam Nasir El-rufai as a result of the high debt profile,
compromised revenue generation system, comatose manufacturing industries,
dilapidated or absence of critical infrastructure and social amenities,
polarization along ethno-religious lines and a public service structure that
encourages corruption and cronyism. The upside being the fact that the new
governor, considering his antecedence of diligence and excellence; has the will,
credibility and competence to confront these challenges head-on.
With an almost empty
purse, low revenue and high debt profile; transforming the “change” mantra from
idealism to reality, the administration must quickly identify key sectors with
the maximum potential to mobilize huge revenue, enhance economic growth, create
massive wealth and redistribute same, generate employment and ultimately reduce
poverty to the barest minimum. The sector that, without doubt, has the
aforementioned potential is the micro, small and medium enterprises; its
resourcefulness has been economically beneficial to countries like United
States of America and China.
According to UNIDO
globally, micro, small and medium businesses constitute over ninety percent of
all enterprises, contributes over fifty percent employment to the workforce and
significantly contributes to global Gross Domestic Product. While medium and
large businesses needs more capital, technical expertise and workforce; small
and micro businesses provide opportunity for more people, with lesser capital
and expertise, to establish and be involved in creating wealth. It has been
discovered that about seventy percent of Small and Medium Enterprises (SMEs)
industries account for development in developed countries.
For instance, According to the E-Journal U.S.A –
Economic Perspective, it states that: 99 percent of all American businesses are
small. Small businesses provide approximately 75 percent of the net new jobs
added to the U.S. economy every year. Small businesses represent 99 percent of
all employers. Small businesses employ 50.1 percent of the private workforce. Small
businesses provide 40.9 percent of private sales. While in China, 50million
small businesses produced 500million jobs between 1980 and 2012 (enwegbara
2013).
With its huge
potential, a number of critical challenges have over the years inhibited the
development of businesses in developing countries like Nigeria; to be specific
for the purpose of this write-up Kaduna state. They include but not limited to:
lack of or limited access to funds and credit facility, lack of robust and
inclusive policies, poor infrastructure, inappropriate legal framework, erratic
power supply, multiple taxation, harsh regulatory requirements, difficulty in
sourcing raw materials, overdependence on imported products, poor ethical
conduct, insecurity, political instability and lack of business and
entrepreneurial skills.
Experts and other stakeholders
have also propounded other reasons why micro, small and medium businesses fail.
For instance, the CEO of Domino Information Company Limited (DICL), Mr. Uzo
Nduka stated that “excessive focus on products and services, rather than
planning and other management functions, has been identified as the major
reason why sixty to seventy percentage of small and medium Enterprises (SMEs)
fail in the first three years of starting operations in Nigeria”.
While as for the
former governor of Lagos state, Babatunde Fashola, he strongly beliefs that the
poor structure of SMEs in the country is responsible for the inability of the
sector to contribute significantly to the growth of the economy. This was
contained in his presentation at the maiden edition of the First Bank of
Nigeria Limited SMEConnect Conference.
The above are also some
of the challenges that the new administration in Kaduna state has to contend
with in tapping the huge potential lying in-wait in especially small and micro
enterprises. When tapped meaningfully they would surely become the driving
force to meeting the huge expectations of especially the residents of the
state; in the areas of wealth and employment creation, income redistribution, youth
empowerment, rural development, bridging the expanding gap between the rich and
poor, increased export earnings, revenue generation and economic growth.
In this direction,
the new administration should annually identify not less than ten thousand
aspiring and existing micro and small business owners; they should be trained
through capacity-building in the areas of business and entrepreneurship skills
development to strengthen their market competitiveness. Furthermore, they
should be organized into cluster cooperatives for easy mobilization and
suitability to access trainings, credit and loans from agencies such as Small
and Medium Enterprise Development Agency of Nigeria (SMEDAN), Nigerian
Directorate of Employment (NDE), Bank of Industries (BOI), Bank of
Agriculture(BOA) and the Central Bank of Nigeria (CBN).
There should be a
constructive and collaborative partnership with key government intervention
agencies and the private sector financing institutions to increase easy access
to credit facility. A mentorship system should be established to be implemented
through an effective Business Development Extension Services (BDES). Work
towards ensuring that these businesses are formalized in collaboration with the
Corporate Affairs Commission. Ensure the development of a robust database of especially
micro and small businesses for research, planning purposes and easy revenue
mobilization.
Furthermore, the
administration must take the responsibility of formulating and implementing inclusive
business friendly policies and programmes, provision of critical
infrastructure, ensuring stability and security of lives and properties,
open-up the state to both local and international investors, and harmonize and eliminate
dubious multiple taxation.
With the population
of Kaduna state put at 6,113,503 (according to the 2006 national census) and a
land mass of 46,053 square kilometers. Furthermore, according to the National Bureau
of Statistics 2010 National Literacy Survey, Kaduna has a youth literacy rate
of 67.3%. The state has the workforce and market for micro, small and medium
businesses to thrive and expand; thereby making it economically viable and
prosperous within the shortest possible time in meeting the people’s
expectations.
YUSUF ISHAKU GOJE
08133126091
greatnessygoje@gmail.com
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