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Mr. Jesufemi Adeogun, the Managing Director/Chief Executive Officer of Newchip Technologies Limited, has regretted the abysmal state of Small and Medium Enterprises (SMEs) in Nigeria, calling for government’s urgent attention to the sector.
In a press conference where he interacted with journalists, Mr Adeogun, who is also the chairman of Grassroots Multipurpose Corporate Society — an organisation of SME managers and directors — while tasking the Federal Government on the way forward to ensure SMEs won’t continue to close up in the country, explained what they do at New Chip Technologies.
“What do I do, basically? I have a passion in business and technology,” he said.
“And what drives us is making sure and seeing businesses start from point A. And seeing them move to point B, point C, even to point Z. And you will agree with me that there are a lot of challenges that businesses face in Nigeria.
“And looking at the business environment, the business place, that is the reason why we are here. And what we are looking into, we will be looking into, we will try to do perception and expectation on business survival in Nigeria,” he said.
“For us at New Chip Technologies, before now, we have been doing workshops on digitalisation, on business development. We’ve done workshops in partnership with Facebook, with Google, brought to Alaba, to Computer Village, to, we’ve done with Nasu, we’ve done with NACCIMA, we’ve done with necessary government business organisations, associations in Nigeria.
“We’ve done with all of them, bringing businesses together, showing them how they can grow their business, showing them how they can build their business, and how they can move forward.”
While regretting the closure of so many SMEs as a result of inclement business environment, he listed such incentives as grants and partnership as veritable ways the Federal Government could support SMEs.
“There is an issue with power. We are close to the Computer Village here, for example. There are lots of businesses that are having issues with power in the Computer Village.
“Yes, the issue of band A, band B, you know, etc, etc. Even the band A, for the past one week, there have been fluctuations of power like never before. And who and who are going to be at the forefront of this? These business owners are hoping every day; if there is no power, you have to run a generator on a daily basis.
“So when you run your generator on a daily basis, you are going to buy expensive fuel for that generator,” he said.
“Are you making enough money to be able to service? So this is one of the challenges that SMEs, businesses are facing, and what I expect is, as a government, business hubs like Computer Village, Alaba should be powered. The government could look into subsidising infrastructure for them.”
The New Chip CEO challenged the government on how to empower SMEs, saying the Federal Government could buy into some good SMEs in terms of acquiring their shares, also urging them to offer incentives such as energy grants, employment grants, equipment grants, among others.
“How many of us here are aware that our government has shares in Dangote Refinery?
“That Nigerian Government has shares in Dangote Refinery. So, why can’t Nigerian government look for select businesses in Nigeria that are doing well and buy shares in them? Does it not make sense? Do you understand? If it is 5%, 10%, Nigerian owned businesses, buy shares in them, give them necessary training.
“Some of them are having issues with exportation, meeting up with exportation demand, etc, etc. Help them to fine-tune all these things. I mean, make it easy for them to do business.
“A friend of mine invited me to come and open a branch of a business in Canada. And he told me that immediately you open that business, there is a $30,000 investment waiting for you, immediately you open the business. Do you see that? Why can’t the government introduce things like that so that it will encourage people to do business in Nigeria?
“So that’s the first one I would like to put to the government. The second one is push out structured grants.
“I’m a bit disappointed in President Tinubu in the sense that he’s done a lot of good things but he himself and his team don’t think of investing in the SMEs up till now; it will shock you to know that there has not been any grant that is open for SMEs.
“A lot of SMEs benefited 10 million Naira from the last administration, some 7 million. Other governments had grants that came in. In the present administration and up till now, nothing of such, and the economy is even harsher now than then. Oh yes, they launched a BOI loan. 5 million Naira BOI loan but they haven’t started granting it.
“Also, they can give capital grants, grants for equipment. This is one area the SMEs really need help. Also there is energy grant. You are doing your business and there is no power for your small business.
“Why can’t the government ensure that every business in Computer Village has an inverter and solar. The government can do this, install it for them, so that there won’t be issue of, say, there is no light. Would they not be happy? If all these shops in Computer Village have inverters and solar, everybody will be happy. Would they not be praising the government? Have they not reduced some of their biggest problems?
“If you go to some buildings in Computer Village, you will see the amount of generators stacked together. That’s one of the things that burnt some buildings. The pollution is not good for health.
“The government can also provide employment grants. Do you know a lot of organisations, companies, SMEs, cannot pay their staff as we are talking? This is because the buying power from customers is low. Government can empower SMEs through the provision of equipment grants.”
Adeogun also highlighted the importance of empowering SMEs with technology tools, saying there are some tools that are important for the growth of businesses.
“The government should introduce policies and invest more in technology tools because there are some tools that are requisite to business growth, which I have been preaching,” he said.
“This is December, for example. How do you know what you did in December last year and at this same time? There are tools that we call analytical tools that will let you know.
“Some people come to December and say, ah, this December is bad. Or January is bad or February is bad. There are analytical tools that you can go and check this same time for your business last year what it was like?
“So, what those tools help you to do is to just relax and say, oh, this thing is just a trend. In another one or two weeks, my business picked up last year. And the same thing happened last year, year before etc. Are you getting what I’m saying now? Do you understand? It happened three, four, five years ago.
“Through that, you will know that it’s just a trend. Are you getting what I’m saying now? So, those kinds of tools are very important for businesses and it’s not all of them that are expensive. Some of them are not that expensive.
“The government could actually subsidise these tools and roll it out for everybody. Let them be able to analyze and keep their records and be able to check, what they are doing? What is the cost of it? What can we do better? We are really, really behind. Nigerian businesses are really, really behind in analytics.
“If you go abroad, almost every business has analytics. But in Nigeria, I mean, just ask any business owner because that’s one of the things I would love to champion if the government gives me the chance to do,” he said.
“I can walk up to your business, just unannounced, and say, can I have six-month cash flow? Six-month book. I want to see what you are making in six months. If you can show me that your business has cash flow in six months, then I can tell the government, do 20% for these shares. That’s good business,” he said.
He said further; “We have the talent. But the problem is that our government is not looking in the right direction. They are not relating with the people that need this thing.
“I mean, meeting the needs of them is just too easy. How much will it cost? What will it cost now to fix a solar for just this Computer Village. Do you understand what I am saying now? But the will has to be there.
“So, I have made the point of having technology tools. I was so particular about that analytic. I was so particular because it’s key for business.
“If you don’t have record of what you are doing, 2, 3, 4, 5 years, you can’t even get proper investments. Do you understand now? You can’t even get investors to come and buy. Because, let me say, I want to talk to this man to invest in my business.
“He will ask me, in the past 3 months, 6 months, what did I do? If I cannot get data to supply him, he will not invest now. Do you understand? He will see him as him. He will not be able to see the business as the business.”
On how New Chip has been able to impact SMEs, the managing director of New Chip Technologies said further.
“We can proudly say that we have been able to help and impact over 1,000 SMEs. So, like I said earlier, we give them training, we give them some materials, we partner with associations to do workshops for them, to enlighten them, to open their eyes to opportunities.
“Like, for example, when the government releases an opportunity, we are part of the group that will first know.
“And Nigerians have this mentality that, oh, this government, they are giving something nobody will get, they will share within themselves. We are the ones that tell them that, no, it’s not always like that. We know how you can get these things when they roll it out.
“We are the ones that come out and tell them that we believe in whatever the government is doing, but there is a way to it. Do you understand now? And quite a number have gotten some grants and so on from previous governments. That’s why I’m pained that, you know, this government now, it’s not doing in that area, it’s doing things in other areas.
“At New Chip, the basic things we do is technology and business development. Did you understand what I said before? Yes. More emphasis on SMEs. That’s our key strength. We do for different businesses, but emphasis on SMEs. That’s our core.
“And myself personally, I ensure that I drive the company to make sure that the company impacts SMEs,” he said.
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