Post-COVID-19: Development Bank Charges MSMEs On Change Of Business Model
Lagos- The Development Bank of Nigeria (DBN) Plc has charged the Micro Small and Medium Enterprises (MSMEs) in the country to reinvent their business models in order to sustain themselves post-COVID-19 virus pandemic.
DBN in a statement on Wednesday said that the COVID-19 pandemic had changed the world’s business order and called on Nigerian business organisations to adopt the new model of carrying out their businesses.
The statement hinted that this was part of the views of panelists’ discussion at the DBN Webinar session, which took place over the weekend with the theme: ‘Alternative Financing Options for Sustainable Growth Post COVID-19 Lockdown.’
The statement emphasised that the Webinar series was aimed at providing capacity building and advisory services for MSMEs through digital platforms to ensure they are empowered to remain in business through this unprecedented period.
A member of the panelists, Mr. Andrew Alli, the immediate Past President and Chief Executive Officer of Africa Finance Corporation said that the framework of every SMEs is to survive the crisis period, increase liquidity and reduce expenditure.
He, however, expressed optimism that Nigeria would overcome the crisis period and the country would return to the era of growth, but insisted that the business environment would not remain the same again.
He said: “If you are an SME, the framework should be to survive the crisis period, have as much liquidity as you can and stem expenditure. You must stabilize the business by stabilizing your cost and reconfiguring your operations. For instance, a five-star hotel in Lagos has outsourced their laundry and restaurant.
You can now order takeaway and pickup of your laundry. The crisis will end, and we will return to a period of growth. A lot of things will likely change because of this pandemic. So, you also need to prepare for that era. You have to be innovative, have a clear vision, be ahead of the curve to take advantage of the new normal.”
Other members of the panelists are Mrs. Toyin Sanni; Chief Executive Officer (CEO) of Emerging Africa Capital, Mr. George Ogbonnaya; Head SME, FCMB and Hajiya Sa’adiya Aliyu Aminu, Urban Shelter. The session was moderated by Prof. Joseph Nnanna, Chief Economist, Development Bank of Nigeria.
While dissecting the current implications of the pandemic on the Nigerian economy, the panelists pointed out that MSMEs were the hardest hit by the crisis, as they had limited access to capital and now have to depend on few customer base.
On alternative sources of funding for MSMEs, Ogbonnaya opined that investors would be prudent in the post-Covid-19 era and would only be attracted to businesses that align purpose with strategic direction.
He listed alternative sources of funding to include crowd-funding, venture lending, data driven lending platforms and risk-sharing guarantees.
Besides, Toyin Sanni cautioned small business owners to “Covid-proof” their business, stressing that quality and branded digital presence would stand as distinguishing factors in the present and post Covid-19 era.
Besides, Sa’adiya Aliyu Aminu said that MSMEs would be crucial to reviving the Nigerian economy, just like the sector did after the 2015 recession.
She called on the Federal Government to reaffirm the made-in-Nigeria policy to promote local production, patronage and discourage capital flight after the pandemic.
