SMEDAN DG, Directors mull partnership to facilitate growth of Nigerian businesses
Director-General of Small Medium enterprises Development Agency of Nigeria (SMEDAN), Mr Charles Odii and Directors under the aegis of the Chartered Institute of Directors (CiOD) are exploring a possible partnership to facilitate the growth of Nigerian businesses.
The SMEDAN DG who spoke at the just concluded Annual Directors Conference in Lagos on a panel discussion themed : Building an Ecosystem For Sustainable Entrepreneurship appealed for a partnership with the Institute citing that a challenge that many small businesses face in the country is a lack of Corporate structure.
Charles urged the members of the institute not to allow their experiences die with them but for them to play a part in revitalising the growth of Nigerian businesses to compete globally.
He noted further that for Nigeria to produce 1,000,000 replicas of Cosmas Maduka, the private sector must collaborate with the government adding that knowledge sharing across board will boost SMEs growth.
The SMEDAN DG also shared his insights on the struggles SMEs encounter, notably after the pandemic.
“After COVID, we lost approximately 3 million small and medium enterprises in Nigeria,” he disclosed. “And so at our last count, we are about declining on 644,000 small businesses. The major issue we face is the lack of formalisation. SMEs need to operate with a corporate structure to access funding and sustain growth.”
He also highlighted the problem of access to funds, revealing a concerning situation where available funds remain untouched due to the lack of corporate readiness among SMEs.
Responding, the President/Chairman-in-council of the CiOD expressed the willingness of the institute to partner with the agency.
The SMEDAN DG’s observations were echoed by MD/CEO of Psaltery International Limited, Mrs Oluyemisi Iranloye, a successful entrepreneur, who recounted her journey in transforming smallholder farmers into commercial farmers.
She emphasised the role of transparency and governance in scaling her business from 17 to over 10,000 farmers.
“I knew from the start that I needed to have a structure and keep accurate books. This transparency allowed us to gain bank support, which was instrumental in our growth,” she shared.
She credited this strategic approach with the success of her company, which today boasts four processing plants.
Additionally, the President/CEO, Coscharis Group, Dr. Cosmas Maduka, a notable entrepreneur, also contributed to the discussion, pointing out the role of governance in creating lasting businesses.
“Corporate governance is not just about today; it’s about sustainability and ensuring that the business thrives even after you are no longer there,” he said. He reflected on his journey, emphasising his early struggles and resilience, saying, “Life is about playing by the rules and adhering to corporate governance. Without it, I may have become wealthy, but the institution I built would not have survived.”
However, the conference featured discussions on ESG best practices from corporate governance to sustainability reporting, with Osagie offering a roadmap for implementation.
“Set clear ESG goals at the board level and targets that align with your purpose and strategy. And ensure that ESG is not just at the top, but is also at the core of your business,” she advised, underscoring the importance of board commitment.
The plenary speakers also highlighted the role of corporate governance in business, advocating for transparency, structure, and adherence to rules to foster growth and stability.
There is a strong emphasis on the importance of mentorship, the value of aligning with skilled individuals, and the need for adaptability and agile execution in business to keep up with innovation.
