Vendors in Ogun State’s micro, small and medium enterprises (MSME) sector are confronting major obstacles in obtaining loans from financial institutions. Insufficient collateral, poor credit histories and high interest rates have left many businesses struggling to operate and expand.
Additional challenges include erratic power supply, inconsistent regulatory frameworks and multiple taxes imposed by different levels of government. These factors increase operational costs and hinder daily operations, often leading to business failure.
At a press conference announcing the 2025 Deemakay Business Exhibition, Adedamola Makanjuola, CEO of Deemakay World, called on the state government to implement measures that support economic growth and development. She emphasized that targeted efforts to identify and safeguard small businesses are crucial for sustainability, given the MSME sector’s significant contribution to the economy.
Makanjuola noted that many entrepreneurs lack essential business‑management skills such as financial record‑keeping and strategic planning. The absence of technical support also prevents them from adopting modern tools and digital platforms needed for greater productivity and competitiveness.
Limited access to finance remains a key issue, with high interest rates and stringent collateral requirements making loans difficult to secure. The regulatory burden and multiple taxation further add to the cost of doing business. Unreliable power supply and poor transport infrastructure force businesses to provide their own utilities, raising expenses even more.
Despite these challenges, Makanjuola believes Ogun State has the potential to develop an efficient small‑scale enterprise sector. She urged the government to support the creation of a robust informal sector where vendors can thrive.
The 2025 Deemakay Business Exhibition, featuring the Commissioner for Women Affairs and Social Development as guest speaker, will provide a platform for MSMEs to showcase their products and services and discuss solutions to their challenges. The event is expected to contribute to the growth and development of the MSME sector in Ogun State.
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