Vendors in the Micro, Small and Medium Enterprises, MSME sector, in Ogun State have lamented the struggle to access loans from financial institutions due to insufficient collateral, poor credit history, and high interest rates that have continued to push their businesses to the brink.
They added that erratic power supply, inconsistency regulatory framework, multiple and unharmonized taxes including levies imposed by different levels of government is also a challenge in their expansion and day-to-day operations.
The vendors expressed their worries on Monday, during a press conference heralding the 2025 Deemakay Business Exhibition.
Speaking at the conference, Adedamola Makanjuola, the CEO of Deemakay world, harped on the need for the state government to embark on series of measures, interventions, and support to encourage and sustain economic growth and development.
Makanjuola argued that a concentrated effort to identify and safeguard small businesses is essential for sustainability and economic growth, adding that the sector is too big and significant to be disregarded.
While admitting that many entrepreneurs lacked essential business management skills, such as financial record-keeping, strategic planning, and quality control, Makanjuola opined that lack of technical support makes it difficult for them to adopt modern tools and digital platforms necessary for increased productivity and competitiveness.
She said, “MSMEs have limited access to finance; this is one of the most pressing challenges. We struggle to secure loans from financial institutions due to a lack of collateral and limited credit history. When loans are available, the interest rates are often prohibitively high, restricting expansion and day-to-day operations.
“Regulatory burden and multiple taxation is another challenge we face as MSMEs; We (MSMEs) navigate a complex and often inconsistent regulatory framework, which consumes valuable time and resources.
“Multiple, unharmonized taxes and levies imposed by different levels of government add to the cost of doing business and can be a major cause of business failure.
“Also, unreliable power supply, poor transport systems, and a lack of other basic amenities significantly increase operational costs, as businesses are forced to provide these utilities themselves (e.g., generators for electricity).”
She argued that despite the state of the nation’s economy, the state has what it takes to have an efficient small scale enterprise, urging the government to help create an efficient informal sector where vendors in the state can thrive.
We reported that the year’s Season 7 exhibition would have the Commissioner for Women Affairs and Social Development, Adijat Adeleye, as its guest speaker.