Vendors in Ogun State’s Micro, Small and Medium Enterprises (MSME) sector are facing significant challenges in accessing loans from financial institutions due to insufficient collateral, poor credit history, and high interest rates. This has resulted in many businesses struggling to operate and expand. Erratic power supply, inconsistent regulatory frameworks, and multiple taxes imposed by different levels of government are also major obstacles to their growth and daily operations.
The concerns were raised during a press conference held on Monday to announce the 2025 Deemakay Business Exhibition. Adedamola Makanjuola, CEO of Deemakay World, emphasized the need for the state government to implement measures that support economic growth and development. She stressed that targeted efforts to identify and safeguard small businesses are crucial for sustainability and economic growth, given the significant contribution of the MSME sector to the economy.
Makanjuola acknowledged that many entrepreneurs lack essential business management skills, such as financial record-keeping and strategic planning. She also noted that the lack of technical support hinders their ability to adopt modern tools and digital platforms, which are necessary for increased productivity and competitiveness. The limited access to finance is a major challenge, with high interest rates and stringent collateral requirements making it difficult for MSMEs to secure loans.
The regulatory burden and multiple taxation also pose significant challenges to MSMEs, with different levels of government imposing various taxes and levies. This adds to the cost of doing business and can lead to business failure. Furthermore, the unreliable power supply and poor transport systems increase operational costs, as businesses are forced to provide these utilities themselves.
Despite the challenges, Makanjuola believes that the state has the potential to create an efficient small-scale enterprise sector. She urged the government to support the creation of an efficient informal sector, where vendors can thrive. The 2025 Deemakay Business Exhibition, which will feature the Commissioner for Women Affairs and Social Development as its guest speaker, aims to provide a platform for MSMEs to showcase their products and services, and to discuss solutions to the challenges they face. The event is expected to contribute to the growth and development of the MSME sector in Ogun State.