As part of measures to migrate operators in the informal to formal sector, Oyo state government has officially commenced data capturing of traders and traders associations.
The move by the government aims at expanding the state economy while supporting micro, small and medium scale enterprises grow while facilitating access to financial support from government and private sector partners.
The Commissioner for Trade, Industry, Investment, and Cooperatives, Otunba Ademola Ojo, alongside the state Head of Service (HoS), Mrs Olubunmi Oni MNi officially flagged off ‘Ise D’Otun’ in Ibadan.
Ise D’Otun is the initiative of the Ministry of Trade, Investment, Industry and Trade aimed at seamlessly migrating operators comprising traders and artisans operating in the informal sector into the taxable net of the formal sector, westernmirror.com.ng has gathered.
Speaking on behalf of Governor Seyi Makinde, the state HoS, Mrs Olubunmi Oni MNi commended the traders and artisans in the state for their continuous support for the present administration assuring that the well-being of their businesses would always be a top priority in government’s economic policies and programs.
Earlier, the Otunba Ojo otherwise known as ‘Ijaya’ highlighted benefits of businesses having proper registration with government and the importance of migrating informal sector operators to the formal sector.
The Commissioner who listed the 500 million naira SAfER (Sustainable Action for Economic Recovery) and the one billion naira Agric Loan as part of Makinde’s strategic way of stimulating the economy at the grassroots also disclosed that the data capturing exercise was in a bid to have proper record of all traders and artisans in the state to enable government make informed planning, boost economic development, and enhance sustainability.
Speaking with newsmen shortly after the official flag off, Otunba Ojo said: “This strategic move not only brings individuals and businesses into the mainstream economy but also contributes significantly to the overall prosperity of Oyo state because they’re the ones to benefit much more contrary to speculations in some quarters that it was entirely about revenue generation.
“One key benefit is increased access to financial resources. Formal sector businesses often find it easier to secure loans and investments, as they adhere to regulatory frameworks and provide a transparent financial history and as a result, this access to capital then facilitates business expansion, innovation, and the creation of job opportunities which promotes a healthier economic ecosystem.
“Moreover, the migration from the informal to the formal sector encourages compliance with legal and regulatory frameworks that reduce risks usually associated with micro, small, and medium scale businesses operating in the informal sector.”
The Commissioner also emphasized the positive impact on job creation and prospects of business expansion. “As these businesses formalize their operations, they are more likely to hire additional hands, contributing to reduced unemployment rates. This, in turn, enhances the standard of living for residents and stimulates local economic growth.
“Let me also say that the migration to the formal sector enables better integration into global markets. Many international trade agreements and partnerships require adherence to certain standards and regulations, which only businesses operating in the formal sector are more likely to meet.”
Other stakeholders in attendance lauded the state government initiative stressing that it would engender real time economic growth while opening up the state for more business prospects within and outside the country, while assuring that all the needed support required by the Oyo state government would be provided towards achieving the aim of the initiative.
The Oyo State Manager, Bank of Industry (BoI), Mr Cyril Anyawu, in his brief remarks said BoI has an existing special package that enables formal sector operators get loan to the tune of 50 million per business and assured that the bank was ready to help micro, small and medium scale businesses grow even as the nation’s economy continues to go through difficult times.
Similarly, the Director General of Corporate Affairs Commission (CAC) in the state, who disclosed that 60% of businesses operating in the informal sector die within ten years due to lack of registration in the formal sector also listed seamless process to getting business registered and business certificate on personal electronic devices without having to show up the CAC office.
While noting that it costs only the sum of ₦10,000 (ten thousand naira) to get a Business name registered on CAC online portal that runs on 24 hourly basis, he equally assured that CAC remains solidly on ground to partner with the state government through the ministry of Trade in line with the vision of President Bola Tinubu.
Some of the stakeholders in attendance include Corporate Affairs Commission (CAC), NAFDAC, Industrial Training Fund (ITF), Federal Consumer Protection Council, Nigerian Export Promotion Council (NEPC), and others
Other notable personalities present at the event are the two contending Iyaloja-Generals of Oyo state–Princess Folashade Abeo and Alhaja Saratu Aduke. Others are leaders of market clusters in the state.
