Saturday, May 25, 2019

Nigeria looses over $1b to corrupt MSMEs development programmes


Business

Latest report by the Sustainable Entrepreneurship and Economic Development Initiative (SEEDi), has revealed that Nigeria has lost over $1 billion to corruption-related Medium Small and Medium Enterprises (MSMEs) programmes in four years.

The report said the amount exceeds Nigeria’s capital expenditure on health and education combined for the period covering 2014 to 2018.

Based on the Central Bank of Nigeria (CBN) official rate of N306/$1, the $1billionn translates into about N306 billion.
The report titled, ‘Stolen dreams: How corruption negates government assistance to Nigeria’s small businesses,” was produced and launched Wednesday in Abuja, by the Carnegie Endowment International Peace, in collaboration with the Open Society Initiative for West Africa (OSIWA).
“Exacerbated by mismanagement and broader policy failures, this form of corruption has disproportionately high multiplier effects. It inflicts lasting damage and opportunity costs on a sector that employs 84g per cent of Nigerian workers and contributes about 50 per cent to Nigeria’s Gross Domestic Product.

“Though difficult to calculate, MSME -related corruption has likely siphoned over $1bn from Nigerian state coffers between 2014 and 2018In her remarks, Secretary, Small Scale Women Farmers Organisation in Nigeria (SWOFON) FCT Chapter, Mercy Nnanna Chukwuma, said women contribute more than 60 per cent of the MSMEs population, which needs proper funding to grow the economy.
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