Promoting Small, Micro And Medium Enterprises: Lesson of The Bangladeshi Model For Nigeria, By Sonny Iroche

Related stories

How 2027 Intrigues, Power Play Ousted Ganduje as APC National Chairman

By Abiola Olawale Latest reports emerging on Friday as to...

NAPTIP Declares Speed Darlington Wanted for Rape, Cyberbullying Allegations

By Abiola Olawale The National Agency for the Prohibition of...

NNPCL Raises Alarm, Says Saboteurs Plot to Derail Corruption-Free Overhaul

By Abiola Olawale The Nigerian National Petroleum Company Limited (NNPC...

Kenyan High Court Condemns Nnamdi Kanu’s Extradition to Nigeria as Unlawful

Awards ₦120 Million in Damages By Abiola Olawale A Kenyan...

Bangladesh has successfully implemented various mechanisms to promote and support Small, Micro, and Medium Enterprises (SMEs), which have played a significant role in the country’s economic growth and poverty reduction, which Nigeria could mimic and adapt to our peculiar economic situation.

Let me start by presenting an in-depth overview of the Bangladeshi SME model and the lessons that Nigeria can learn from the Bangladeshi initiatives, for consideration and implementation

Specialized Financial Institutions:
Bangladesh has established specialized financial institutions dedicated to SME financing. Which is similar to the defunct People’s Bank of Nigeria that was established by the Ibrahim Babangida regime, which was headed by the late Maria Shokenu as the Managing Director and the late Dr Tai Solarin as Chairman. The Bangladesh Small and Cottage Industries Corporation (BSCIC) and the SME Foundation are two prominent institutions that provide financial assistance, training, and technical support to SMEs. These institutions offer collateral-free loans, credit guarantees, and venture capital to address the funding gap that many SMEs in Nigeria face. Nigeria can learn from this approach by establishing similar institutions that focus on providing accessible and affordable financing options for SMEs.

Simplified Business Registration: Bangladesh has implemented policy reforms to simplify business registration processes and reduce bureaucratic hurdles for SMEs. The country introduced a “One-Stop Service” system, where entrepreneurs can complete all necessary registration procedures in a single location. This streamlined process has made it easier for SMEs to start and operate businesses. Nigeria can adopt a similar approach by simplifying its business registration procedures and reducing administrative burdens for SMEs. In order to achieve this, some of us analysts have advocated for the decentralization of the Corporate Affairs Commission to enable the 36 State governments to be able to register SMEs, with an integrated ICT with the Abuja central system.

Access to Credit: Bangladesh has taken steps to improve SMEs’ access to credit by establishing credit information bureaus and promoting credit scoring systems. These initiatives have helped financial institutions assess the creditworthiness of SMEs more accurately, leading to increased lending to the sector. Nigeria can learn from this by implementing credit information systems and encouraging the use of credit scoring mechanisms to enhance SMEs’ access to finance.

Skills Development and Entrepreneurship Training: Bangladesh has prioritized skills development and entrepreneurship training for SMEs. The country has established numerous training centers and vocational institutes that offer specialized courses and workshops to equip entrepreneurs with the necessary skills and knowledge to run successful businesses. Nigeria can replicate this approach by investing in vocational training programs and entrepreneurship development initiatives to enhance the capacity and competitiveness of its SME sector.

Export-Oriented Industrialization: Bangladesh has focused on developing specific sectors, such as garments and textiles, through export-oriented industrialization. The government has provided various incentives and support to SMEs operating in these sectors, leading to significant growth in export earnings. Nigeria can learn from this by identifying key sectors with export potential and providing targeted support to SMEs operating in those sectors to enhance their global competitiveness.

Public-Private Partnerships: Bangladesh has fostered strong public-private partnerships to support SME development. The government collaborates with industry associations, chambers of commerce, and private sector entities to design and implement policies and programs that benefit SMEs. Nigeria can adopt a similar approach by fostering collaboration between the government, private sector, and industry associations to create an enabling environment for SME successful development in Nigeria

Nigeria can look to Bangladesh as a model for Small and Medium Enterprises (SMEs) development. Bangladesh has made significant strides in promoting and supporting SMEs, which has contributed to its economic growth and poverty reduction.

Lastly, Nigeria can learn from Bangladesh’s success in promoting SMEs through export-oriented industrialization. Bangladesh has focused on developing specific sectors, such as, shoe and leather ; while Nigeria should encourage and support shoe and leather products manufacturers in Aba, and other manufacturing hubs, exporters of sesame seeds, gum Arabic from the Western and Northern states of the country. By identifying and supporting key sectors with export potential, Nigeria can boost its SME sector and enhance its global competitiveness.

In conclusion, Bangladesh’s SME model provides valuable lessons for Nigeria. By establishing specialized financial institutions, simplifying business registration processes, improving access to credit, investing in skills development, promoting export-oriented industrialization, and fostering public-private partnerships, Nigeria can create a conducive environment for SMEs to thrive, driving economic growth, job creation, and poverty reduction.

NB: Sonny Iroche was the Executive Director (Finance & Accounts) of the Transmission Company of Nigeria (2013-2017)
X. (Twitter): @IrocheSonny
Email: siiroche5@gmail.com

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

NDN
Latest News
How 2027 Intrigues, Power Play Ousted Ganduje as APC National ChairmanExclusive! Nigerians, International bodies Demand Justice as Ogun State Govt Stalls Estate Development, 9 Years after Payments for landNAPTIP Declares Speed Darlington Wanted for Rape, Cyberbullying AllegationsNNPCL Raises Alarm, Says Saboteurs Plot to Derail Corruption-Free OverhaulKenyan High Court Condemns Nnamdi Kanu’s Extradition to Nigeria as UnlawfulJust In! High Stake Intrigues as Ganduje Resigns as APC National ChairmanOil Prices Set For Weekly Loss as War Premium EvaporatesList of Top 10 Most Advanced Countries in the WorldWhy African Countries Depend On Foreign Handouts, Aids -- ObasanjoRivers Crisis: How Tinubu Brokered Peace Between Fubara, Pro-Wike LawmakersRivers Crisis: How We Resolved Our Rift With Fubara -- Wike RevealsEnergy Projects: Proton Energy Secures Major Funding Deal with AfreximbankFubara vs. Wike: Shehu Sani Expresses Doubt About Resolution, Says Fubara's Loyalists Won't Be HappyPrince Ademola Adeniji-Adele: The Forgotten Hero of June 12 China Launches Phase 2 Deep-Sea Gas Field Adding
X whatsapp