The Japan International Cooperation Agency (JICA) has urged Nigeria to adopt targeted industrial policies and strengthen support for small and medium-sized enterprises (SMEs) to drive economic growth, job creation and productivity.

 Ishigame Keiji, JICA chief representative in Nigeria, made the call on Wednesday in Abuja at the agency’s 5th JICA Chair Roundtable Discussion and Special Lecture, which examined lessons from Japan’s SME development experience.

Mr Ishigame said strengthening the SME ecosystem would create opportunities for entrepreneurs, improve productivity and promote inclusive economic growth.

“Strengthening the SME ecosystem is essential for creating opportunities for entrepreneurs, improving productivity and supporting inclusive economic growth. Nigeria and Japan have built a strong partnership over many years,” he said.

The guest lecturer, Funabashi Gaku of the International University of Japan, said targeted industrial policies had contributed to the success of SME development in Japan and other Asian countries.

He said governments needed to identify priority sectors and provide tailored support rather than spread resources across too many industries.

Mr Funabashi cited the machinery, automobile and electronics industries as examples of sectors that had benefited from focused government support in Japan.

He advised Nigeria to adapt the principles behind Japan’s experience to its local context rather than replicate its policies wholesale.

“Nigeria doesn’t have to have the same mindset as Japanese; you have to consider the characteristics of the Nigerian people and how you can combine that with principles like productivity improvement and incremental process innovation,” he said.

On access to finance, Pacqueens Irabor, divisional head, MSME South-South, Bank of Industry (BOI), said Nigerian banks continued to rely on collateral because of concerns about enforcing financial discipline.

He urged the Central Bank of Nigeria to ensure broader enforcement of the Global Standing Instruction (GSI) mechanism for businesses, not only individuals.

The representative of the Development Bank of Nigeria (DBN), Busola Falade, said the bank’s mandate focused on improving access to finance, sharing risks to support micro, small and medium-sized enterprises (MSMEs), and providing technical assistance.

Ms Falade said DBN had established Impact Credit Guarantee to support risk-sharing and was developing innovation hubs in Kaduna, Kwara and the South-East to provide MSMEs with mentorship and technology support.

The roundtable brought together government agencies, financial institutions, business associations and development partners to discuss ways to strengthen support for Nigerian enterprises. 

(NAN)