• Tue. Apr 23rd, 2024

Driving Nigeria’s Economic Resurgence: Insights From The CAC, Moniepoint Collaboration

In a bid to bolster Nigeria’s economic landscape, the recent collaboration between the Corporate Affairs Commission (CAC) and Moniepoint Microfinance Bank has emerged as a beacon of hope for the nation’s micro, small, and medium enterprises (MSMEs). With MSMEs contributing nearly 50% of the national GDP and employing over 84% of the workforce, formalizing and supporting these businesses is critical for sustainable economic growth.

The partnership, spearheaded by the regulatory expertise of the CAC and the financial inclusion prowess of Moniepoint MFB, aims to register 2 million small businesses. By formalizing these enterprises, the initiative seeks to unlock their full potential, offering access to finance, expanding the tax base, facilitating market participation, and fostering better governance practices.

Formal registration empowers MSMEs to access credit facilities, reducing reliance on personal funds and accelerating business expansion. Moreover, integration into the formal economy enhances revenue mobilization through increased tax contributions, diversifying Nigeria’s income sources beyond oil revenues.

By providing legal status and credibility, formalization enables MSMEs to tap into local, regional, and global markets, contributing to trade facilitation and economic integration. Additionally, it encourages better record-keeping and governance practices, essential for long-term viability and efficiency.

Dr. Uzoka-Anite, Minister of Industry, Trade, and Investment, lauds the initiative for its collaborative approach and commitment to creating an enabling environment for small businesses. Moniepoint’s ambitious goal of onboarding 30 million businesses within five years underscores its dedication to driving economic growth and financial inclusion.

In conclusion, the CAC-Moniepoint partnership presents a sustainable model for fortifying Nigeria’s economic base through MSME formalization. With prudent policies and continued collaboration between public and private sectors, this initiative has the potential to catalyze inclusive and sustainable industrial development, paving the way for shared prosperity and empowerment across Nigeria.

Hyacinth Beluchukwu Nwafor

Hyacinth Beluchukwu Nwafor is a seasoned journalist and the CEO/Founder Belch Digital Communications, publishers of Hybrid News Nigeria.

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