• 1.73 billion naira has so far been invested in 36 projects by 36
Banks.
• The amount represents only 14 percent of the total sum
• A total of 12.37 billion naira was set aside by 79 Banks
• Banks contribution to SMIEIS hits N11bn, flout guidelines
• Lagos has over 90 percent of the
projects while there is one each in Cross
River, Anambra, Delta and Oyo States
respectively
• 75 percent of the total investment is in the service sector alone.
Numerous
problems are faced by SMEs while trying to assess the fund and they include:
poor management, poor internal control system, improper keeping of financial
records, high rate of business failure, lack of technical and economic
counseling, weak working capital base, non disclosure of information,
susceptibility to sudden policy changes, poor accounting standards (improper
records of business transactions), limits accessibility to institutional credit
and shortage of skilled manpower.
Summarily
the SMEIEIS funds suffer from inadequate financial resources to hire skilled
manpower, which has restrained the expansion and limits productivity. Others
include financial indiscipline, loan diversion, aversion to disclosure of
information on supply sources, production processes, production costs
(information opacity).