Commercial banks are not programmed for long-term funding and capital investment which is a major reason why small businesses are starved of funding in the country.
Speaking at the opening ceremony of the 2018 Abuja International Trade Fair, the President of the Abuja Chamber of Commerce and Industry (ACCI), Prince Adetokunbo Kayode, faulted the system being used by government to fund businesses, which is mainly through commercial banks that “do short term quick return deals”.
“We urge government to consider and agree to a special funding vehicle for SMEs through the organised private sector,” he said.
Kayode questioned government’s “uncoordinated and disjointed multiple taxation in SMEs,” which he described as serious and debilitating.
He said multiple taxations manifest in many forms such as corporate tax, stamp duties, property tax, tenement rate, infrastructure charges, environmental charges, and water rates.
“While government must pay for municipal charges like water, waste, and power, it must, especially for SMEs, be done in a way that does not, as it is currently happening, hurt and stall the growth of SMEs and their profitability,” he said.