In the realization of the importance of the small scale industry sub-sector in any developing economy, the Federal Government by an Edict in 1974 set up the small scale industries Credit Scheme (SSICS). The scheme was a joint effort between the Federal and State governments to provide finance for viable industrial projects. The scheme was originally financed by the Federal Government with the respective State governments contributing a percentage which was loanable to prospective entrepreneurs to set up their businesses or industries. To ensure the success of the Scheme, Loan management Committee (LMC) was established by each state in their ministries of commerce and industry and called small scale division to operate the credit scheme.
Like every other state, the small scale industries credit scheme was established. The small scale industry sub-sector is very vital to any developing economy such as ours; just as the small scale industries credit scheme is important to enable people interested in setting up their small scale industries do so. The loan management committees have the right to co-opt other relevant individuals from time to time with a full time secretary.
Prospective applicants for the Loan must be people with genuine interest and must apply through the secretary for Loan. The criteria for the acceptance of an applicant should be dependent on the possession of relevant technical and management ability, integrity as ascertained by an interview panel set up by the committee coupled with the feasibility of the project as ascertained through a project feasibility study prepared according to guidelines.
There is the need to revive the scheme to provide for our country with the bearing of industrial policies and realities of today.
The Federal and State governments should rekindle their industrial thinking and policies by encouraging the small scale industries sub-sector as the cradle and bedrock of industrialization, This all important sector is not receiving the needed attention in our country Nigeria and this is borne out of ignorance and selfish desires to operate a non-functional policy that will not benefit the general public except the originators alone.
Governments should make special budgets for the small scale industries Loan scheme to keep afloat and functional. Some States such as Imo, Oyo, Ondo, Kaduna, and Rivers in 1990, had budgetary allocations for small scale Loan Scheme which were hardly released especially in Rivers State.
Oyo State for instance, spent N10 million on 200 small scale industries between 1974 and 1989 while Rivers State which budgeted N500,000 for 1989 disbursed N200,000 only to hand pick individuals.
Also, in realization of the importance of the small scale industries on the economy, the federal Government in 1988 set up the National Economic Reconstruction Fund (NERFUNG) for small and Medium Scale Enterprises(SMSES) which was clearly captured in that year’s budget the fund provided medium and long- term funds to eligible enterprises through participating commercial and merchant banks. Forty Nine banks participated in the scheme. The industrial base of this country is not encouraging at all. The Federal and State Government should work hand in hand to ensure that small scale industries thrive in this country by reviving the NERFUND and make it accessible to any prospective industrialist. There is lack of interest and political will by our leaders to encourage industrialization in the country.
This Luke-worm attitude results in ineffectiveness of the few operational small scale industries as they find it difficult to cope with modern trends and innovations. Small scale industrialization makes appreciable impact on any nation’s economy. Something must be done to improve the industrial growth of the country Government should see the need for industrial growth and make adequate promise for prospective industrialists through revolving Loans and establishment of industrial estate in states. There is need to encourage rural impact on the rural dwellers and minimize rural-urban drift.
It is high time government started determined the industrial destiny of the country as this would boost job creation and enable us complete favourably with other industrial nations. Government should come out with a sound and dynamic industrial policy for the country while giving financial support to small scale industrialists. Investment in the non-oil sector in the country will boost the economy as the country has abundant mineral resources and business opportunities for export. Government should collaborate with private investors to promote small scale industrialization with a view for improving the country’s Gross Domestic Product (GDP). It is advisable to reduce multiple taxation and other unfriendly business policies as well as provide potential investors with adequate information in the areas of manufacturing quality products. The industrial sector of the country is grossly underdeveloped so it needs to be more active in the effort to diversify our economy. There is also need for better cooperation and professionalism among industrialists in the country to enhance their capabilities. The more cooperation and exchange of innovations, the better for the volume of profit they will make in their business.
Collaboration and partnership will go a long way to increase the availability of products in the country and it pays faster and leads to growth in the sector. Industry players should attract more young professionals into the sector and endeavour to give them the necessary training to improve their skills. Industrialists need to increase their access to public decision making arenas, in technology, services and markets as well as provide an avenue for sharing and exchanging ideas and experiences. For Nigeria to have a strong economy, it must grow its industrial base as a money spinner and potential source of revenue for the country.
