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Sustaining Small and Medium Enterprises for Nigeria’s Economic Growth
The SMS &P team – Small and Medium Scale Businesses and Partners – is fully dedicated to supporting SMEs. The team works closely with Microsoft’s network of partners. Marius Moantsoga, SMS&P Lead for Microsoft Nigeria explains the role of SMS in the economy. He spoke to emeka okafor.
The World Economy
It is hardly necessary to make the point that we are in the midst of an economic downturn that has permeated markets worldwide. The issue dominates our government’s agenda and is splashed across our media. Few of us have failed to feel its impact directly. This downturn is truly a global issue and is proof—as if it were needed—that we live in a global village, where the ripples of one uncertain market can be felt across the world.
Nigeria has not been isolated from the impact of this recession. In fact, according to the 2008 African Economic Outlook published by the Organisation for Economic Cooperation and Development (OECD), Nigeria’s growth rate is expected to fall to 4% in 2009 as a result of the Organization of the Petroleum Exporting Countries’ (OPEC) quota on oil production, as well as declining foreign investment.
In recent years there has been a strong focus on making Nigeria attractive to foreign investors and international corporations with the aim of spurring economic growth through imported expertise and capital. Inevitably there is some concern now as to how this economic climate will impact these growth factors.
However, the reality is that Nigeria’s small and medium enterprises (SMEs) account for 70% of the country’s industrial jobs and some 95% of its manufacturing activity. This is according to the African Development Bank (AfDB) and the OECD. As such, while we must be mindful of ensuring Nigeria remains an attractive prospect for foreign investment, it is vital that we remain committed to the growth and success of our own SMEs.
Sustainable Foundations
SMEs are the foundation for Nigeria’s sustained economic growth. They serve as an engine of job creation and skills development. Businesses built and nurtured in Nigeria utilise our local talent—both men and women—and encourage entrepreneurship and a culture of self-reliance. They also transcend different industries, spurring economic diversification and enabling the development of rural communities.
By creating an environment where people are encouraged to pursue their entrepreneurial ambitions, we can ensure that our talented citizens remain in Nigeria.
Challenging Times
Setting up a business and fostering its growth is a challenge in any economic climate. In today’s market conditions, just getting a business off the ground, let alone seeing it survive well into the future, is a daunting challenge.
According to the FATE Foundation, a Nigerian organisation developed to promote business and entrepreneurial development among Nigeria’s youth, rapid urbanization, coupled with a shrinking economy, has created an environment in which over 70% of the recent graduates who reside in urban areas are unemployed. While many of these graduates are eager to set up their own businesses, only a few have succeeded.
And the SMEs that are already up and running are finding it difficult to secure the credit they need to sustain their businesses in the face of reduced customer demand.
The reality is that the economic crisis requires us to take decisive steps to protect the years of economic growth we experienced. It is important to ensure that the progress made in creating an environment where such businesses could be set up and succeed is not undone.
The consensus across Africa is that SMEs will play a critical role in ensuring our survival through these times. In fact, the AfDB recently extended a US$100 million line of credit to Nigeria’s Intercontinental Bank so that Nigeria’s SMEs could access the money they need to sustain their operations.
Also, the African Commission just proposed partnering with the AfDB to establish a US$3 billion African Guarantee Fund to boost the development of SMEs in Africa. In the words of the Commission, such investment will unleash the power of African entrepreneurship by enabling young people to translate their good ideas into practical plans.
Our own government has likewise implemented a number of initiatives to support the development of SMEs. One is the Small and Medium Enterprises Development Agency of Nigeria, which works to establish business support centres and provide our SMEs with enhanced access to finance and management training
Another is the Small and Medium Industries Equity Investment Scheme fund, which requires all banks in Nigeria to set aside 10 percent of their annual after-tax profit for equity investment in small and medium sized business. Such initiatives are crucial to ensuring that funds are channelled to the businesses that need them most.
Taking Advantage of Technology
Entrepreneurs can also use the technology already at their disposal to surmount some of the challenges they face. It’s a fact that technology is effectively enabling individuals to set up and run a business from their homes.
Looking Forward
Enabling the success of our local SMEs is not just about facilitating Nigeria’s immediate economic recovery or ensuring long-term sustainable growth. It is also a vital element in seeing Nigeria compete on the global economic stage. The world’s greatest success stories all began as small enterprises, and some of the world’s most powerful nations, such as the United States, have been built on the strength of an entrepreneurial culture.
Among the many SMEs already in existence in Nigeria, or the budding entrepreneurs eager to set up new enterprises, there may well be the world’s next Bill Gates or Aliko Dangote. It is to Nigeria’s benefit, particularly in these tough times, that we continue to create an environment where such businesses are nurtured.
Economic and Financial Crimes Commission (EFCC) has uncovered an alleged multi-billion-naira visa overstay racketeering network within the Nigerian Immigration Service (NIS), with at least five serving officers, including a deputy comptroller, grilled by investigators.
The investigation, which cuts across the administrations of several former comptrollers-general of Immigration, has reportedly uncovered about N700 million in the bank accounts of one of the suspects and several multi-billion-naira estates allegedly acquired by another suspect through proxies.
The alleged racket centres on the extortion of foreigners who overstayed their visas, with investigators probing how immigration officials allegedly diverted or illegally collected huge sums from affected foreigners.
The development comes against the backdrop of the Nigeria Visa Policy 2025, which introduced a penalty regime requiring foreigners who overstay their visas to pay $15 for every day spent in the country after the expiration of their visas.
A visa overstay occurs when you remain in a country past the authorized departure date stamped on your passport or travel document.
The EFCC investigation is reportedly focused on officers operating at the Murtala Muhammed International Airport, Lagos; Nnamdi Azikiwe International Airport, Abuja; and the NIS headquarters in Abuja.
Among those said to have been questioned are Assistant Superintendent of Immigration, Bashar Suleiman, serving at the Lagos airport; deputy superintendent of Immigration, Musa Abubakar, of the Abuja airport; principal staff officer to the comptroller-general of Immigration, chief Superintendent of Immigration Dotun Aridegbe; and two personal assistants to the comptroller-general, assistant comptroller of Immigration Emmanuel Imaekhai and assistant superintendent of Immigration O. Babatunde.
The investigation was reportedly triggered by information supplied by a female immigration officer who allegedly blew the whistle on the scheme.
A source familiar with the probe said the whistleblower’s allegations led investigators to examine the financial activities of several NIS officers and their associates.
“We opened an investigation into the visa overstay racket after a female immigration officer blew the lid on the racketeering,” the source said.
The source alleged that investigators had found links between the alleged racket and several aides of Kemi Nandap, current comptroller-general of Immigration.
“Several of her aides have indicted her directly and indirectly. Investigators are looking into whether she was a beneficiary of the multi-billion-naira extortion racket,” the source said.
The allegations against the Comptroller-General remain subject to investigation, and no formal charge has been announced against her.
The source said the investigation had revealed that the alleged extortion network may have operated for years, possibly under successive Comptrollers-General of Immigration.
“It is an interesting but damaging case because we found out that the extortion of overstayers has been going on for several years under past CGs, some of whom appeared to have benefitted from the scheme,” the source said.
Investigators have reportedly identified a Deputy Superintendent of Immigration who has served at the Nnamdi Azikiwe International Airport for more than 10 years, a posting described by investigators as unusual.
A search of the officer’s apartment allegedly uncovered immigration stamps associated with various international airports across Nigeria.
The officer is also said to have maintained close relationships with successive Comptrollers-General, a development now being examined as investigators attempt to unravel the alleged structure and longevity of the racket.
“He is known to relate directly with all serving CGs. His admissions have been illuminating as he is the linchpin of the operation,” the source said.
The EFCC is also investigating the alleged use of proxies to conceal the proceeds of the racket.
Some individuals whose names were allegedly used to operate multiple bank accounts and acquire landed properties have reportedly told investigators that they acted as fronts for the suspects.
The commission is expected to scrutinise the assets, bank accounts and financial transactions linked to the suspects as it traces the alleged proceeds of the racket.
The investigation may also be widened to include some former Comptrollers-General of Immigration, who could be invited to clarify findings and authenticate admissions allegedly contained in written statements obtained from the suspects.
The EFCC has yet to publicly announce charges against the officers, while the investigation is ongoing.
However, CSI O. Babatunde, one of the NIS officers, said to be linked to the alleged visa overstay racket has denied any involvement in the scheme.
The officer, in a brief response to the allegations, said he had no connection with visa fraud or any related racketeering.
“I am not involved in a scam and do not have any visa scam issue, please. I was never invited for visa scam,” the officer said.
Others who were asked of their involvement, Dotun Aridegbe, Emmanuel Imaekhai, Bashar Suleiman did not respond to messages sent to their mobile line.
The denial by Babatunde, comes as the EFCC continues its investigation into the alleged visa overstay extortion network.
The commission has not publicly disclosed the identities of all the officers being investigated, nor has it announced any charges in connection with the matter.
All allegations remain subject to investigation, and the suspects are presumed innocent unless proven guilty by a court of law.
Nigerian Copyright Commission (NCC) and National Drug Law Enforcement Agency (NDLEA) have signed a Memorandum of Understanding (MoU) to fight against piracy and drug trafficking in the country.
NCC Director General, Dr. John Asein (left) and NDLEA Chairman/CEO, Brig Gen Mohamed Buba Marwa (Rtd)
This was disclosed on Friday in a press statement released by Femi Babafemi, director of Media and Advocacy, NDLEA.
Speaking at the ceremony to sign the MoU at the NDLEA headquarters, Brig Gen Mohamed Buba Marwa (Rtd), chairman/chief executive officer of the Agency, said the partnership may appear, on the surface, to bring together two unrelated mandates, but which, on closer examination, reflects a shared reality in the fight against organized crime in Nigeria.
According to Marwa, “Our experience at the frontlines of drug law enforcement has shown us time and again that criminal networks rarely confine themselves to a single illicit enterprise. The same syndicates that traffic in narcotics are often found dabbling in other forms of economic crime, including the piracy of intellectual works that rightfully belong to Nigeria’s creatives: our musicians, filmmakers, writers, and software developers. Proceeds from one illegal trade frequently find their way into financing the other. This is the criminal value chain we must disrupt together.
“Today’s MoU gives structure to that shared fight. Through it, our two agencies commit to exchanging intelligence, coordinating joint operations, building the capacity of our respective officers, and supporting one another with the technical resources needed to do this work well. A Joint Working Committee will be established to drive this collaboration forward, meeting regularly to ensure that what we sign today translates into real results on the ground.
“Let me be clear: this partnership is not just about law enforcement. It is about protecting the health and social wellbeing of our people, and about safeguarding the immense creative talent of this nation: a talent that deserves to thrive without the theft that piracy represents, and a society that deserves protection from the scourge of illicit drugs.”
He commended the NCC for recognizing the intersection between drug trafficking and piracy. “This is how effective government works; agencies finding the common threads in their missions and pulling together rather than in isolation”, Marwa added.
In his remarks, Dr. John Asein, director general of NCC, noted that the alliance between NDLEA and the commission marks a significant milestone in the growing culture of inter-agency collaboration within the Nigerian public service, adding that the effort will enhance the common responsibility of protecting the Nigerian society from criminal enterprises that undermine national security, economic development and the rule of law.
“Copyright piracy is sometimes wrongly perceived as a minor commercial offence or a victimless activity. In reality, large-scale piracy is often a highly organised and profitable criminal enterprise. It deprives creators and investors of legitimate income, destroys jobs, discourages investment, reduces government revenue and weakens the foundations of Nigeria’s creative economy,”Asein said.
“International experience has demonstrated that organised copyright piracy is rarely an isolated criminal activity. Across several jurisdictions, the same criminal syndicates, logistics channels, financial networks and distribution systems used to traffic pirated goods have also been linked to other forms of transnational organised crime, including narcotics trafficking, money laundering, smuggling and cyber-enabled offences. This reality underscores the imperative for closer collaboration between agencies such as the National Drug Law Enforcement Agency and the Nigerian Copyright Commission.
“The same clandestine supply chains, transportation routes, storage facilities, financial channels and distribution networks used for trafficking in illicit drugs and other prohibited goods may also be deployed for the movement and sale of pirated books, films, music, software and other copyright products. Proceeds from piracy may equally be laundered or channelled into other criminal activities.
“This connection makes collaboration between the Nigerian Copyright Commission and the National Drug Law Enforcement Agency both necessary and timely. By combining our respective mandates, expertise and intelligence capabilities, we can more effectively identify criminal networks, trace illicit financial flows, disrupt illegal supply chains and dismantle the structures that sustain organised criminal enterprises.
“For the Nigerian Copyright Commission, this partnership offers an invaluable opportunity to leverage the National Drug Law Enforcement Agency’s world-class expertise in intelligence-led law enforcement. Over the years, the NDLEA has earned a well-deserved reputation, both nationally and internationally, for its professionalism, operational excellence and innovation in combating organised crime. Under the able leadership of the Chairman/Chief Executive, the Agency has demonstrated remarkable success in intelligence-driven operations, strategic investigations, forensic capabilities, surveillance, financial intelligence, international cooperation and effective inter-agency coordination.”
Federal Airports Authority of Nigeria (FAAN) has announced plans to introduce a biometric identity verification system, known as V-Pass, to speed up passenger processing and enhance security at domestic airports nationwide.
This initiative is aimed at strengthening aviation security, reducing passenger processing time and eliminating dependence on physical identity documents.
A statement issued yesterday by Henry Agbebire, director of Public Affairs and Consumer Protection, FAAN, said the new facial recognition platform, developed in partnership with Verxid Technologies Limited, would enable passengers to verify their identities through biometric authentication, allowing them seamless access through airport security checkpoints and boarding gates.
According to him, the initiative formed the focus of a strategic meeting between FAAN and Verxid Technologies Limited, where both organisations reviewed deployment plans, security safeguards and measures to improve passenger experience.
The statement hinted that the authority centred on ensuring the successful rollout of the digital platform while maintaining high security standards.
The statement quoted, Adebola Agunbiade, director of Commercial and Business Development, FAAN, as describing the V-Pass as another milestone in the authority’s ongoing digital transformation programme.
According to her, the platform indicated FAAN’s commitment to deploying innovative technology that enhances passenger facilitation while reinforcing aviation security across domestic airports.
She assured that the system would provide every traveller with a secure digital identity through a one-time enrolment process.
Under the arrangement, Nigerian passengers would register using their National Identification Number (NIN) alongside facial biometric capture, while foreign travellers would enroll with their passports through Optical Character Recognition (OCR) supported by biometric authentication, the statement added.
FAAN said the system would verify passenger identities before they gain access to restricted airport areas and once again before boarding their flights.
The agency noted that the dual-verification process was designed to prevent identity fraud, impersonation and unauthorised access to airport facilities, while giving security agencies greater confidence in passenger authentication.
Passengers would be able to complete the verification process either through self-service kiosks or with assistance from trained FAAN personnel.
The deployment would also include electronic gates to automate access into controlled areas, reduce queues and improve passenger movement across airport terminals.
According to the developers, first-time registration is expected to take about one minute, while subsequent biometric verification would take less than 30 seconds.
Apart from passenger processing, the V-Pass platform would also provide airlines with secure digital access to flight schedules, passenger manifests and boarding statistics.
FAAN assured travellers that data protection remained a critical component of the project, stressing that the platform fully complies with the Nigeria Data Protection Regulation (NDPR).
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