THE ESTABLISHMENT OF NEW DEVELOPMENT BANK OF NIGERIA AND THE POWER OF SMSEs IN CHINA'S ECONOMY

THE ESTABLISHMENT OF NEW DEVELOPMENT BANK OF NIGERIA AND THE POWER OF SMSEs IN CHINA'S ECONOMY
                              By:
                  Nurudeen Dauda
                   2nd March, 2017.
nurudeendauda24@yahoo.com
nurudeendauda24@gmail.com 
nurudeendauda.blohspot.com

Let's stop deceiving ourselves, no government anywhere in the world can provide jobs to everybody. 90% of jobs in America and even China nowadays are provided by the private sector not the government. Our government in my view, needs to make Entrepreneurship course compulsory at every class from secondary  schools up to the universities. We must also focus on technical education. Graduates must take Entrepreneurship very seriously. However, let's have a functional Development Bank that will solve the issue of start up capital and recapitalization. 

The new licensed Development Bank of Nigeria (DBN) will focus on on given loans to Small and Medium Scale Enterprises (SMSEs). One of the most distinguished feature of Development Bank with other Banks is providing long term loans to borrowers. However, in my observation, one of our major problem as people and as a country is the belief that all of us most pick up government jobs. For the new development Bank to succeed the government must embark on a national orientation on the fact that no country can provide government jobs to all its people, neither China nor even Russia does that.

China's Small and Medium-Scale Enterprises (SMSEs), formed the bulk of the country's private investors, play an important role in employment and economic development. China's registered small and medium-size enterprises (SMSEs) exceeded 40 million in number which accounted for more than 99.6% of the total number of enterprises in China and contributed to 58.5 percent of GDP, 50 percent of tax revenues, 68 percent of exports and 75 percent of new jobs every year. SMSEs accounted for 99 percent of China's registered enterprises said: Minister of Industry and Information Technology Li Yizhong.

Also In Turkey SMEs account for 79 percent of jobs. Creating jobs for Turkey's unemployed and for the rapidly growing labor force. In November 2015 Small and Medium-Sized Enterprises (SMEs ) constituted 99.8% of total number of enterprises in Turkey.

For the new Development Bank of Nigeria to succeed, in my view, the government needs to use it National Orientation Agency(NOA) in doing a lot of orientation campaign on the need to  be self-reliant.The Bank must be run professionally without political interference. The Bank must be run with a single digit interest rate lower than the rates of some CBN intervention funds such as the anchor borrowers program. 

Similarly, providing cheap funds(lower rate) as well as long term loans as done in other climes will make the plan a success. More so, less loans conditionalities for accessing facilities by businessmen will also encourage people to participate. 

May God bless Nigeria!

Popular posts from this blog

ON MUHAMMAD SANUS II: NOT IN DEFENSE OF BUHARINOMICS By:

ON MUHAMMAD SANUS II: NOT IN DEFENSE OF BUHARINOMICS                          By:              Nurudeen Dauda              7th September, 2023 nurudeendauda24@gmail.com nurudeendauda@yahoo.com nurudeendauda.blogspot.com To start with, this is not an attempt to defend Buharinomics , but just an attempt to set the records straight. Ours from the 1970s to the 1980s through the 1990s to the year 2000s and to date have always been the economy and there was never a time that we were "Better Off" but only getting "Worse Off" by the "passage" of each administration. What ought to have been done on the economy was never done ,we have been postponing the evil day through economic cosmetics policies. The economic hardship being experienced currently by most Nigerians "revolves" around the two major policies by the Tibunu's administration ; namely: fuel subsidy remo...
Read more

THE MARTYRS OF JAN.,15th, 1966

THE MARTYRS OF JAN.,15th, 1966                        By:            Nurudeen Dauda            January 15, 2024 nurudeendauda24@yahoo.com nurudeendauda24@gmail.com nurudeendauds.blogstop.com                    Fifteenth January of every year in Nigeria is set aside as the Armed Forces Remembrance Day . It is a day for the commemoration of the servicemen of the Nigerian armed forces. It is to also honours veterans of the World War I and II as well as the Nigerian Civil War.  However, in my observation, what most Nigerians seem to leave out in a day like this was the sad event of January 15th, 1966 where our beloved political and military leaders were assassinated in the most brutal sectional military coup d'tat led by the "overzealous" middle class military officers whom majority were from a "section" of the country...
Read more

BETWEEN PRESIDENT BUHARI’S-CHINA’S CURRENCY SWAP DEAL AND THE DOUBTING THOMAS!

BETWEEN PRESIDENT BUHARI’S-CHINA’S CURRENCY SWAP DEAL AND THE DOUBTING THOMAS!                              By:            Nurudeen Dauda             15th April ,2016                   nurudeendauda24@yahoo.com nurudeendauda24@gmail.com  nurudeendauda.blogspot.com Nigeria under President Buhari has become the 34th country to sign “Currency Swap Agreements” with China; Chinese Yuan(Renminbi) is the second most traded currency after dollars, however, China has “Currency Swap agreements” with the following countries: (1)European Union (27 member countries)-9thOctober,2013;(2) United Kingdom-22nd June, 2013;(3) Ukraine-26 June,2012;(4)Canada-8th November,2014;(5) Unite Arab Emirates-17th January,2012;(6)Brazil-26th March,2013(7)Russia-23rd June,2011;(8) Turkey-21st Febuary,2012;(9) Australia- 22nd M...
Read more