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EDITORIAL MSMES AS KEY TO ECONOMIC GROWTH Government could do more to these enterprises to make them function optimally
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pparently having come to terms with the fact that the task of growing the domestic economy rests principally with the people of Nigeria and not foreigners, VicePresident Yemi Osinbajo recently admitted that without a functional micro small and medium enterprises (MSMEs) sector, inclusive and sustainable economic growth would be nearly impossible. We have always advocated that serious attention be given to domestic businesses within the MSMEs cadre from which we believe the jobs to cater for Nigeria’s growing population would come from. A country with over 27 million SMEs as disclosed by the Central Bank of Nigeria (CBN) should not by any TAX BREAKS AS OFFERED means ignore or TO FOREIGN DOMINATED look down on the almost limitless FIRMS BY THE economic potenGOVERNMENT SHOULD tial these SMEs BE EXTENDED TO MSMES possess and which can be harvested TO AT LEAST PROVIDE to her beneďŹ ts. THEM SOME GROUNDS TO Indeed, researches STABILISE have shown that the MSME sector constitutes the spine of any country’s economy because as small industry operators, they weather and overcome stiff competition from foreign operators to grow and keep jobs for locals. Furthermore, the Small and Medium Enterprises Development of Nigeria (SMEDAN) had reported that MSMEs in the country currently represent 96 per cent of the businesses in the country and contribute 75 per cent of the national employment. Now that the government appears bought over by the inherent capacities of Nigeria’s MSMEs, we would want that it actually follows through its words with the necessary action. Recognising that the government had in the past established numerous programmes to support the MSMEs in the country but with very little to show for such efforts, the new measures should be practical and
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tailored to the needs of the MSMEs. Fortunately, what they need to survive, progress and deliver to the economy are not hidden but known to everyone, even in government. It is clear that conventional banks are not cut out for long term lending needed by MSMEs in the country. It is equally known that these banks are mostly comfortable to lend to short term business ventures as against start-ups which would need longer gestation period to pay back, and that is where the new Development Bank of Nigeria (DBN) should step in and be useful. The DBN, which was created and set up by the last administration of Dr Goodluck Jonathan, to amongst other objectives, provide long term facility for MSMEs in the country to grow and expand, should be buoyed greatly by the Muhammadu Buhari administration chiey for the beneďŹ ts it would provide to the national economy through its support for MSMEs in the country. Considering that the DBN reportedly has the buy-in of the World Bank, German Development Bank, African Development Bank (AfDB); and the Agence Française de Development (French Development Agency); as well as the European Investment Bank (EIB), it should by all means serve as a lifeline to Nigeria’s MSMEs sector. Its support to the MSMEs should be wholesale and strategic. Secondly, the federal government should step up and sustain its energising economy programme (EEP), another initiative which has got the support of the World Bank, and which aims to provide clean electricity supplies in mini grid forms to industrial clusters and big markets across the country. Managed by a reconstituted Rural ElectriďŹ cation Agency (REA), the EEP has already started with pilot schemes in Ariaria Market in Aba – a market renowned for its industrial and commercial ingenuity; Sura Shopping Complex and Somolu Printing Complex in Lagos; as well as the Sabon Gari Market in Kano. Additionally, we are also of the view that tax breaks as offered to foreign dominated ďŹ rms by the government should be extended to MSMEs to at least provide them some grounds to stabilise.
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RENEWABLE ENERGY FOR POWERING PHCS
he controversy that shrouded the outcome of the just concluded Osun Governorship election amidst lack of confidence in the electoral commission may just be another reason behind the diminishing turnout in Nigeria’s election ahead of 2019 general elections. Since the 2015 general elections, statistics have shown that while the Independent National Electoral Commission (INEC) may have steadily improved in deployment of materials and conduct of elections generally, this has not translated into increased voter turnout during elections. This is no doubt a worrying trend ahead of the 2019 general e Since WHO pioneered the deployment of various types of energy sources over the last four decades for the vaccine cold chain for its expanded programme on immunization, it has become very obvious that solar energy technology would play critical role in providing alternative power source to ensure good quality and safe vaccine storage in remote health centres. Increasingly, evidence has crystallised that “the introduction of solar power has the ability to significantly improve healthcare delivery to poor and rural communities�. For example, a study in Sarguja, a district in India’s central state of Chhattisgarh, finds that “on average, health facilities with solar treated
50% more out-patients each month, conducted 50% higher institutional deliveries, admitted a higher number of in-patients as well as provided round the clock services�. Thus, health facilities with solar power performed significantly better than those without; thereby establishing connection between access to reliable electricity by health facilities and better health outcome in rural communities. This is because, “regular and reliable provision of electricity to healthcare facilities is important for their effective operation. In many developing countries, over one-half of healthcare facilities have no electricity or lack reliable electricity.� It is a common knowledge that Nigeria’s power generation, transmission and distribution infrastructure are not commensurate with the energy demands of the population (including reliable electricity for healthcare facilities). The question therefore remains: what is the proportion of health facilities with reliable 24-hour supply of electricity in Nigeria? What is the electricity need of community health facilities? What is the impact of lack of access to reliable electricity on our health outcome in Nigeria (particularly in rural areas)? This is necessary because, most of our healthcare facilities lack access to reliable electricity. Even the lowest health facility at the level of a post or dispensary requires being connected to
national grid and or other regular alternative power source. Health facilities depend on access to reliable electricity for functioning at night, operating diagnostic equipment, pumping water, vaccine storage, and managing hazardous waste materials, etc. According to renewable energy experts, solar systems have several advantages; they provide flexibility to design that can cater to the power load of a health centre, reliability of performance, critical loads such as vaccine refrigerators, and service to remote or hard to reach areas where access-related challenges are most acute. It is estimated that the solar potential of Nigeria ranges between 4.0kWh/m2/day to 6.5kWh/m2/day for average of five hours every day according to a report on Nigeria’s Energy Calculator 2050 (NECAL 2050). In 2010, Nigeria was reported to have 0.015GW Stand Alone Solar (SAS) PV installation and no grid solar PV installation. The legislative framework provided under parts VIII and IX of the Nigeria’s Electric Power Sector Reform [EPSR] Act OF 2005 can be explored to create macro level fiscal space to accommodate PHCs particularly those located in remote places in our rural electrification programme. To this end, the Rural Electrification Agency (REA) in collaboration with National Primary Health Care Development Agency
(NPHCDA) can provide 2kWh off grid solar PV systems with battery backup to thousands of PHCs across the country. This would be in line with sustainable energy for all action agenda (SE4ALL-AA) established by inter-ministerial committee on renewable energy and energy efficiency (ICREE) which set the target of electrifying up to 90% of the community healthcare facilities by 2030 for Nigeria. As severally pointed out at many stakeholders’ levels, “accelerating deployment of renewable energy to health centres is a need of the hours�; moreover, “powering health systems through renewable energy such as solar could address energy (sustainable development goal seven) and health (sustainable development goal three) concerns simultaneously.� The availability of reliable and regular electricity to run 24 hours health services at the primary healthcare centres is critical if the goal of universal health coverage would be reached. According to WHO’s health indicators of sustainable energy, health offers a universal indicator of progress in attaining the UN Secretary General’s goals for sustainable energy for all. Tunde Salman, is the Convener of Good Governance Team, a Nigerian civil society advocacy and monitoring platform