Ogun State Governor, Senator Ibikunle Amosun, and Oba Babatunde Ajayi, have called on the National Assembly to enact a law that will serve as a mechanism to drive the survival of Micro, Small and Medium Enterprises (SMEs).
This, according to them, will help fast-track the country’s growth.
The duo spoke at the 2018 international conference of Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) in Lagos recently.
Amosun, who was represented by the Deputy Governor, Mrs Yetunde Onanuga, said the survival of businesses was tantamount to the development of any economy. According to him, the survival of businesses would ultimately boost employment generation and as well, generate revenues into the coffees of the governments.
The governor noted that insolvency in businesses would impact negatively on socio-economic development and lead to economic downturn.
He, however, lauded the vision behind the incorporation of the BRIPAN.
He urged the federal government to ensure the diversification of the nation’s economy from the over-reliance on crude oil as its major source of income.
“The trend all over the world is to ensure the survival of micro, small and medium enterprises, alongside big businesses as a catalyst to industrialisation and ultimately a boost to employment generation and governments’ revenue.
“Nigeria, therefore, cannot be an exception, but must also ensure that its existing small and large businesses must not only survive but also flourish,” said the governor.
Earlier in his opening remarks, Ajayi, who is also the President/Chairman of Council, BRIPAN, said there was need for restructuring within the context of ongoing development of insolvency law in the country. According to him, the era of businesses dying unnecessarily in Nigeria is over.
The traditional ruler noted that central to the ongoing discussions was the role of insolvency practitioners, lawyers, taxation experts and chartered accountants in driving effective business rescue within the ambits of the law.
The monarch expressed optimism that the conference would avail Nigerians various business rescue mechanisms available to financially distressed companies as well as the legal and regulatory framework essential for a vibrant and modern business rescue regime.