PwC, NBCC strategise to bridge SMEs’ financing gap

To position Micro, Small and Medium Enterprises (MSMEs) for adequate financing, PricewaterhouseCoopers (PwC Nigeria) has partnered with the Nigerian-British Chamber of Commerce (NBCC) to assist start-ups navigate through the challenges of operating in the Nigerian business environment.

Speaking at a capacity-building workshop for small businesses in Lagos, recently, the Director-General, NBCC, Ms. Joyce Akpata, said the training was designed to provide participants the information needed to profitably manage and expand their businesses in the face of worsening economic climate and a difficult operating environment.

Specifically, she noted that the initiative focused on three areas critical to the survival and growth of small businesses such as, record keeping and accounting, addressing financing and taxation.

She explained that her association’s partnership with PwC is in line with their objectives to promote exclusively bilateral business and investment activities between Nigeria’s and Britain’s private sector, through workshops, business luncheons, seminars, trade fairs, trade missions and other activities.

According to her, these activities are expected to aid trade and investments for small and medium enterprises as well as large scale multinationals.

Partner and Head, Tax & Regulatory Services, PwC Nigeria, Taiwo Oyedele, while speaking on the topic: “Tax Planning and Compliance”, stated that tax matters needed to be approached proactively in order to prevent future problems in any business.

In his words: “Understanding the tax laws and its administration would reduce costs as ‘getting it right the first time’ prevents the imposition of interests and penalties. It is therefore important to approach tax matters proactively and be ready to respond if and when a tax dispute arises. Without a plan of action for resolving potential tax disputes; uncertainty, inefficiency and lost opportunities can result which can impact very negatively on a business.”

Taiwo listed the issues associated with non-compliance to include reputational issues, going concern, prosecution, penalty and loss of opportunities.

Also, Partner and Head, Consulting at PwC Nigeria, Cyril Azobu, noted that good financial management begins with keeping accurate records, internal control, budgeting and financial reporting.

Azobu said: “Nigeria has adopted International Financial Reporting Standards (IFRS) as the framework for financial reporting and this include SMEs. This means that SMEs are expected to also prepare their accounts according to the standard.”

He listed the key drivers and benefits of IFRS for SMEs to include, improved access to capital; standardised and improved comparability and improved quality of reporting. In addition, it focuses on the needs of users of SME financial statements and reduced burden for entities in jurisdictions where full IFRS are now required.

Head, Research and Development, National Collateral Registry NCR/CBN, Dr. Musa Olasupo, in his presentation said the National Collateral Registry (NCR) and Credit Reporting System are two important financial institutions that will help bridge the SME finance gap.

Olasupo added that the Federal Government is very much concerned with the success of MSMEs in the country, which necessitated the recent introduction of the NCR in the country, which now allows MSMEs to access loan facilities with their movable assets.