Magnus Eze, Enugu
The Nigeria Deposit Insurance Corporation (NDIC), yesterday, praised the sheer industry and enterprise of people of the South East, particularly, Aba, in Abia State, for providing the country the hub for Small and Medium Enterprises (SMEs) development.
Managing Director of NDIC, Alhaji Umaru Ibrahim, said it was in the region that one would see abundant proof of how the development of cottage industries and SMEs could lead to employment and wealth creation which invariably result to the emergence and growth of entrepreneurship.
Speaking at the Corporation’s special day at the ongoing 31st Enugu International Trade Fair, on “Advancing the growth of SMEs through corporate governance for rapid economic development”, he said corporate governance can greatly assist the SMEs sector by infusing better management practices, stronger internal auditing and greater opportunities for growth.
He noted that it could also assist them in improving on their obtaining funding from financial institutions; through proper book-keeping and accounting practices and information disclosure which increase the confidence of investors in firms.
Represented by the Zonal Controller, Mrs Vera Ikwue, he said that the NDIC and Central Bank of Nigeria will continue to ensure that banks support SMEs.
“As a critical pillar in the Nigerian financial system, NDIC will continue to promote such needed interface between industry and the economy by working to ensure a safe, sound and stable banking sector that offers strong support to SMEs.
“Against this backdrop, the NDIC and CBN have been taking steps to strengthen the operations of the Microfinance Banks (MFBs) with a view to making them relevant to the needs of SMEs,” he stated.
Earlier, President of Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), Emeka Nwandu urged the apex bank through its regulatory framework to make the work of NDIC easier by reducing the chances of bank collapse to the barest minimum.
He however, lauded the two agencies for the stability and near tranquillity in the banking/ financial sector through their regulatory frameworks, despite the current challenges experienced in the nation’s economic cycle.