PwC MSME Survey 2020

INTERVIEW: ENGR. AUWAL IBRAHIM BUNUNU, NATIONAL VICE PRESIDENT, NASME Engr. Auwal Ibrahim Bununu "There are some policies which contradict the development of SMEs. An example is the local content policy which calls for patronage of local products and services, but public procurement laws set rules to make it difficult for SMEs to be Es to be eligible." What are the top three challenges you face dealing with SMEs generally? " SMEs are largely informal. This accounts for their lack of compliance with regulatory requirements while making it difficult for regulatory agencies to monitor their activities. SMEs are also unable to get licenses when required or have systems in place for adequate keeping of financial and audit records etc. Lack of Technical and Managerial skills, Technology and Innovation. Poor Quality of Products and Services: Some products and services are below market requirements. This has made it difficult for SMEs to access finance and large markets within and outside Nigeria. What current policy do you envisage could have a negative impact on SMEs? Some economic policies do not provide enabling environment for the growth of SMEs. There are some policies which contradict the development of SMEs. An example is the local content policy which calls for patronage of local products and services, but public procurement laws set rules (such as turnover, previous works executed) to make it difficult for SMEs to be eligible. Even an SME which has the turnover and experience may not be eligible for the big projects because of the nature of the current procurement laws What current policy do you envisage could have positive impact on SMEs? Open Government Policy: It is good to see that the Government operates an open policy (government processes and payments for procurement of regulatory licenses are now more open). This has a positive impact by encouraging transparency and eliminating corruption. What area of research is needed to support the SMEs in Nigeria There are three areas of research that will assist the growth of SMEs Financial Research: This will assist in identifying the causes of lack of finance and models that would ease the problem of access to finance. Reverse Engineering Research and Product Development: This will assist to develop and process local raw materials in order to make them available for SMEs. Market Integration Research: It also important to know how to Integrate MSMEs into production lines and international trade. This will help MSMEs utilise Foreign Direct Investment which will create jobs and diversify the economy PwC MSME Survey 2020 PwC June 2020 61

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