ENUGU -An industrialist, Mr. Goodie Ibru, has called for the setting-up of Small and Medium Enterprises (SMEs) banks to take care of funding of medium scale industries in the country.
Ibru made the call on Tuesday in Enugu while delivering a lecture entitled: “Realizing the NEPAD Business Group Vision for Nigeria and the Challenges of Private Sector Development,’’ at the 35th AGM of Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA).
Ibru, who was represented by Mr. Victor Oyolu, said “Micro Finance Banks can best service the funding needs of micro and small enterprises generally with a capitalisation of less than N100 million.
“Medium-sized enterprises with a total investment of more than N100 million are neither small nor large-sized businesses,’’ he said.
Ibru, who is Chairman, NEPAD Vision-Nigeria, said that the SMEs credit facility “can neither be fully met by micro finance banks nor by conventional commercial banks.’’
He also said that the Bank of Industry, which now emphasises SME lending, could not effectively cater for credit facility needs of SME companies or businesses.
“There is a limit to which a single, centrally-owned and managed bank can go,’’ he said.
He said that there was a need for SME bank model that could be replicated at zonal or state levels for increased access to credit facilities.
Ibru, however, commended the federal government for establishing the National Board for Technology Incubation as well as the Federal Ministry of Commerce and Industry.
“In addition, private sector entities and Non-Governmental Organisations (NGOs) and Universities should be encouraged to establish enterprise/technology incubation centres.
“Such centres will particularly enable universities to turn research results into innovative products and give their students the necessary entrepreneurial skills needed to make the difference out of the four walls of the Universities,’’ he said.
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