Nigeria is a country in Africa, they have the largest economy in that continent and have approximately 180 million populations. In Nigeria, the micro, small and medium enterprises account for 84% of jobs; this means they are the sector with the highest employment of labour. The latest report from the Minister of Trade and Investment shows that Nigeria has over 37 million MSMEs enterprises. The Minister also reveal that the MSMEs account for about 48.5% of the gross domestic product (GDP).
The Nigeria government has created different policy to energizing the MSMEs sector because what everybody can view, MSMEs is the major economic growth driver.
OVER THE YEAR, THE NIGERIA GOVERNMENT HAVE PUT SOME MEASURES TO IMPROVE THE MSME SECTOR, E.G
The government has initiated some policies like:
Direct all banks to be offering MSMEs loan
Promise to offer MSME financing opportunities from their budget
The government promise to create more lending system
The government promise to create a system that will give them access to affordable credit facility
-The government promise to conserve the foreign exchange reserve etc
SO FAR,
Out of about 37 million MSMEs enterprises in Nigeria, the central bank of Nigeria have helped only 120 thousands MSME enterprises. Meanwhile the government herself only budget N200 billion($5.5m) to help the MSMEs enterprises.
You can all agree with me that all the new policies and measures implemented by the Nigeria government is not viable. It shows the complex issue facing the MSMEs sector still continue.
The banks and all other financial institutions that out to help in financing the MSMEs require CREDIT SCORING. Meanwhile, it is very unfortunate that most of the MSMEs enterprises don't have any business records nor credibility status. In summary, you can all agree with me that MSMEs don't have access to financial help from financial institutions because they don't have credit scoring and there is no credibility status.
NIGERIA SHOULD THINK OUTSIDE THE BOX
How can Nigeria improve and develop MSMEs? How can they solve the challenges of MSME not having access to credit? How can MSMEs have access to financial capital?
How can Nigeria solve all these questions?
I have my own contribution and that is what I want to share today. I want to recommend a platform that can help us solve those challenges facing MSME sector. The name of the platform is called Tokoin.
TOKOIN
Tokoin is a platform that has put up measures on how MSMEs can conveniently get access to finance and sources of capital. Tokoin aim is to help people build a valid identity and reputation of MSMEs using blockchain technology.
TOKOIN UTILIZE BLOCKCHAIN TECHNOLOGY
In this 21st century, technology has taken over all sectors including the business world. The technology has revolutionized many things it has taken over the job of man. The innovation of blockchain technology finally disrupt the entire system; this type of innovation will make us never to depend on the government to solve the challenges facing the MSME industry. The blockchain is a decentralized distributed ledger system, it is highly effective and have the capacity to secure data.
You can watch most of their activities here
Since the problem of MSME is that there is no credit scoring and lack of credibility, the blockchain technology can be used to build credit score and improve the credibility of MSMEs. Since blockchain is a decentralized system, individual users share their data and assets to whomsoever they want or desire.
WHAT WILL NIGERIA MSME SECTOR GAIN IN ADOPTING TOKOIN
The MSMEs will have a viable financial records. This will be also similar to that of the banks
They will have a better record of financial transactions as a form of credit history to build the credibility status of their business
All the transaction executed will be recorded with timestamps
The MSMEs will be able to view the history of their transaction and know how to amend and re-address their business plan
Individual MSME enterprise can easily create a credible business profile and build his credit scoring
The MSME through Tokoin to obtaining easy access to funding application
Enjoys lower price using aggregate buying algorithm
Earn points while carrying out transactions through the platform. The points accumulated can be used to enjoy a discount or use it to pay for services.
Join their Telegram group to ask for more questions
CONCLUSION
Nigeria government should enlighten her citizens to emulate blockchain and crypto ecosystem. Nigeria government through her media team should broadcast to the people about Tokoin project, so that everybody will be aware about the new development. Through the Tokoin platform, individual MSME can build their own credit score and credibility that will make them meet up with the demand of most financial institutions. Tokoin platform will partner with many financial institutions and investors that will help in financing the MSMEs.
Though! The Tokoin is starting its services in their hometown 'Indonesia' and in due time, they will enlarge their services; so Nigeria MSMEs sector should get ready.
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