Delta State Micro, Small and Medium Enterprises Development Agency Law, 2014(1)

DELTA STATE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT AGENCY LAW, 2014

1. Short title and Commencement. This Law may be cited as the Delta State Micro, Small and Medium Enterprises Development Agency Law, 2014 and shall come into force on 14th day of October, 2014.

2. Interpretation. In this Law- "Agency" means the Micro, Small and Medium Enterprises Agency established under Section 3 of this Law; "Appropriation Law" means the appropriation law of the State and includes supplementary appropriation Law; "Board" means the Board established under Section 5 of this Law; "Development Fund" includes funds from the Central Bank Of Micro, Small and Medium Enterprises Development Fund, any loan or development fund granted to the State in aid Of Micro, Small and Medium enterprises with or without interest; "Executive Council" means the Delta State Executive Council; "Governor" means the Governor of Delta State "Guidelines" includes guidelines issued by the Central Bank of Nigeria on Micro, Small and Medium Enterprises; "Member" means member of the Board of the Agency and unless the context does not admit, includes the Chairman; "Micro Enterprises" means enterprises operated by a sole proprietor with less than 10 employees with a total asset of less than N5 million (excluding land and buildings); "Participanng Financial Institution" includes a licensed Microfinance Bank, Microfinance Institution (Non Governmental Organizations and Financial Cooperatives) and Finance Companies accredited by the Agency under this Law; "Regulations" includes guidelines issued by the Agency; "Small and Medium Enterprises" means entities with between 11 and 200 employees with an asset base of N5 million and not more than million (excluding land and buildings); "State" means Delta State of Nigeria.

3. Agency. (1) There is hereby established for the State a body to be known as Micro, Small and Medium Enterprises Development Agency. (2) The Agency shall be a body corporate with perpetual succession and Common Seal and shall have power to sue and be sued in its corporate name and to acquire, hold and dispose of moveable and immoveable property for the purpose of its functions under this Law.

4. Objects of the Agency. The objects Of the Agency shall include: (a) to co-ordinate and promote the development or Micro, Small and Medium Enterprises in the State, (b) to facilitate strategic agricultural financing programmes for Micro, Small and Medium enterprises in the State; (c) to facilitate, encourage and support the extension of financial services to Micro, Small and Medium Enterprises in the State, and to provide guarantees for micro credit, small medium enterprise financing; (d) without prejudice to the generality of this Law, to put in focus at all times the enterprise mentioned in First schedule to this Law, and to ensure they maximally benefit from grants loans or capacity building training program, advisory consultancy services offered by State, the Federal Government or its agencies or by donor agencies; (e) enter into partnership with Participating Financial to facilitate the access to loans by the Micro, Small and Medium entrepreneurs at minimal rates of interest and through simplified processes.

5. Functions of the Agency. The functions of the Agency shall include: (a) initiating and articulating ideas for micro, small and medium enterprises policy thrusts; (b) preparing and presenting to the State government a convincing quarterly framework/roadmap on empowerment program for prospective beneficiaries of the loan facilities. (c) coordinating, collating. processing and forwarding, as may from time to time be necessary, applications by Participating Financial Institutions for the disbursement of Development Fund; (d) carrying out quarterly monitoring of Participating Financial Institutions activities under the Development Fund Scheme; (e) rendering quarterly performance report to the State Govemment and the Central Bank of Nigeria on funds or loans disbursed either directly or through Participating Financial Institutions; (f) providing entrepreneurial capacity building opportunities for micro, small and medium enterprises through State-owned skills acquisition/vocational centres, entrepreneurship development centres or any such televant agencies; (g) serving as a vanguard agency and focal point for rural economic development, poverty alleviation and eradication, technology acquisition and adaptation, job creation and sustainable livelihood; (h) promoting and facilitating development programmes, instruments and support services to accelerate development, modernisation, networking and linkage of micro, small and medium enterprises; (i) mobilising internal and external resources, including technical assistance for micro, small and medium scale industries, their support institutions, trade associations, and non- governmental organisations; (j) overseeing, co-ordinating and monitoring developtnent in the micro, small and medium industries sub-sector; (k) designing, packaging end prontoting cottage and micro small and medium scale industrial projects; (l) providing industrial extension services to micro, small and medium enterprises, fabricators of machinery and beneficiaries of the loan facilities; (m) establishing liaison between research institutes, local fabricators and micro, small and medium enterprises; (n) providing and facilitating technical and managerial training to Micro, Small and Medium Enterprises and linking micro, small and medium scale entrepreneurs to sources of finance, technology, technical skill development and management; (o) facilitating and promoting the development of standard designs and quality assurance for machinery and equipment, and commercialising them to end-users; (p) promoting and providing access to industrial infrastructure, including estates and layouts, and incubators; (q) providing necessary information and assistance to micro, small and medium enterprises in the marketing of their products; (r) promoting ancilarisation, sub-contracting, clustering and networking relationship; (s) encouraging and promoting strategic linkages within Micro, Small and Medium Enterprises, and between Micro, Small and Medium Enterprises and large scale industries; (t) establishing and coordinating the activities of Industrial Development Centres in the State; (u) collaborating with the Agricultural Research and Mechanisation Centres and Agro-industrial Schemes in Nigeria; (v) enter into partnerships with Micro Finance institutions with a view to carrying out its functions and attaining the growth of micro, small and medium enterprises in the State; (w) liaising with Federal government agencies and external agencies for support and development of micro, small and medium enterprises in Nigeria; (x) listing ptoducts that micro, small and medium scale industries have substantial internal capacities to manufacture to meet domestic market needs; (y) carrying out such other activities connected with or incidental to the other functions of the Agency in order to promote government policies in the development of micro, small and medium enterprises;

6. Powers of the Agency. In pursuance of Sections 4 and 5 of this Law, the Agency shall have power to- (a) demand and obtain relevant information, data and reports on activities relating to promotion and development of micro, small and medium enterprises by and from banks, research and development instiuions and other organizations; (b) enter into agreements or memorandum of understanding with relevant institutions and organizations for the promotion and development of micro, small and medium enterprises: (c) collate, analyze ahd make available through publications and the mass media and in cooperation with public or private organizations, basic scientific data and other information pertaining to microfinance and entrepreneurship development: (d) establish, encourage and promote training programmes for staff of the Agency and other public and private individuals for microfinance and entrepreneurship development; (e) establish, encourage and promote vocational and skills acquisition centres, enterprise zones, business incubation centres, and industrial clusters in the State for micro, smait and medium enterprises; (f) engage such staff, agents, consultants and other workers as the Agency may require for the purpose of performing its functions under this Law; (g) encourage and promote microfinance banks in all the Local Government headquarters and areas of the State, in accordance with Central Bank of Nigeria guidelines; (h) develop and promote such processes, methods, devices and material as may be necessary for business and entrepreneurship development; (i) monitor, survey, control and encourage the development of the objectives of the Agency: (j) sanction or recommend the sanction of any Participating Financial Institution infracting any regulation or guidelines on the disbursement and recovery of any loan; (k) do such other things as necessary for the useful performance of its functions under the law.

7. The Board. (1) There shall be established for the Agency a Board, which shall be appointed by the Governor. (2) The Board shall consist of: (a) chairman, who shall be a holder of a degree in Business Adminstration, Economics or the Social sciences from a recognized University and with workmg experience in development programmes management, finance or banking: (b) ex-Officio members not below the rank of a Director, to represent the Ministries charged with the following responsibilities. i. Commerce and Industry; ii. Agriculture and Natural Resources iii. Finance; iv. Economic Planning v. Justice; vi. Youth matters. (c) a nominee each of: i. the Chambers of Commerce and Industry; ii. the Central Bank of Nigeria; iii. National Association of Micro Finance Bank, Delta State Chapter iv. the Small and Medium Enterprises Development Agency of Nigeria; and (d) three persons involved in micro, small and medium enterprises (one from each of the three senatorial districts of the State.) (3) The Executive Secretary appointed under this Law shall in addition 1o his other duties under this Law be the Secretary of the Board. (4) The Chairman and members of the Board, shall be part time members appointed by the Governor on the recommendation of the Commissioner. (5) The Supplementary provisions set out in the Second Schedule to this Law shall have effect with respect to the proceedings of the Board and other matters mentioned therein.

8. Tenure of the Board chairman and members. The Chairman and members of the Board, other than ex-officio members shalt each hold office: (a) for a term of four years in the first instance and may be reappointed for a further term of four years and no more; and (b) on such terms and conditions as may be specified in his letter of appointment.

9. Cessation of Membership. Notwithstanding the provisions of Section 8 of this Law, a member of the Board shall cease to hold office if- (a) he resigns his appointment as a member of the Board by notice, under his hand, addressed to the Governor: (b) he becomes of unsound mind; (c) becomes bankrupt or makes a compromise with his creditors; (d) he is convicted of a felony or of any offence involving dishonesty or corruption; (e) he becomes incapable of carrying out the functions of his office either arising from an infirmity of the mind or of the body; or (f) the Governor is satisfied that it is not in the interest of the Agency or of the public for the person to continue in office and notifies the member in writing to that effect.

10. Emolument etc of Members. The Chairman and members of the Board other than ex-officio members shall be paid such emoluments, allowances and benefits as the Governor may, from time to time, direct.

11. Power of the Board. The Board shall be responsible for: (1) providing the general policies and guidelines relating to the functions and powers of the Agency; (2) identifying and developing new and alternative methods of alleviating poverty through Micro, Small and Medium enterprises in the State; (3) formulating and developing blueprints for building entrepreneurial capacity for Micro, Small and Medium enterprises in the State; (4) reviewing progress of the programunes of the Agency and recommending changes and additions to current programmes especially the annual work plan of the Agency (5) the recruitment, promotion and discipline of staff of the Agency; (6) making regulations for the carrying into effect any of its function; and (7) do such other things as may be necessary or incidental to the efficient performance of the functions of the Agency.

12. Appointment of the Executive Sectetary and other Staff of the Agency and functions. (1) The Governer shall appoint an Executive Secretary for the Agency and ratify the appointment or employment of all other staff of the Agency upon the recommendation of the Board. (2) The executive Secretary shall hold office: (a) for a term of four years in the first instance and may be reappointed for a further term of four years and no more; and (b) on such term and conditions as may be specified in the letter of appointment. (3) The Executive Secretary shall be the Chief Executive and Accounting Officer and shall be subject to the general guidelines laid down by the Board. (4) The Executive Secretary shall - (a) be responsible for the management of the day-to-day affairs of the Agency; (b) ensure the implementation of the objectives and functions of the Agency: (c) Take minutes of meetings of the Board: (d) keep proper records and proceedings of the Board; and (e) carry out such other activities as may be directed by the Board. (5) The Executive Secretary shall be assisted by Head of Departments who shall be appointed by the Board. (6) The Head of Departments shall be deployed as heads of the following Departments of the Agency: (a) Department of Finance and Accounts; (b) Department of Planning Research and Statistics; (c) Department of Project Development and Assessment; (d) Department of Legal Affairs and Compliance; (e) Department of Advocacy and Public Comununication; (f) Department of Administration.

13. Qualification of Management Staff. (1) The Executive Secretary of the Agency shall possess the minimum of a university degree and with cognate experience in a business organization, financial institution, or related organizations for at least, ten (10) years; (2) A Head of Department of the Agency shall possess the following, as minimum qualification - (a) university Degree or its equivalent; and (b) relevant cognate experience in a financial institution or relevant field for at least 5 years. (c) In addition to the above, the Director of Accounts must be a member of one of the recognized professional Accountancy Bodies in Nigeria. (d) In the case of the Director of Legal Affairs and Compliance he must have at least 5 years post call to Bar experience.

14. Other staff. (1) The Agency shall with the approval of the Governor appoint or employ such staff, whether professional or none professional including reputable and competent external consultants, as it may require to carry out its functions; (2) The staff of the Agency shall be appointed upon such terms and conditions of service as the Agency may after consultation with the State Civil Service Commission determine.

15. Remuneration and Discipline of Staff. (1) The salary and remuneration of the Executive Secretary, Head of Departments and other categories of staff that shall be employed by the Agency shall be as applicable to equivalent of positions in the State Public Service. (2) The Agency shall have the power to appoint, promote, and exercise general disciplinary control over its staff. (3) The Governor may, with the approval of the House of Assembly, fix such special salary scale for certain category of workers of the Agency.

16. Transfer and Seconding of Staff. Without prejudice to the generality of this Law and notwithstanding the provision of any of other law, the Governor may from time to time direct the transfer or seconding of any staff or other officer employed in the civil service to perform duties or functions in the Agency and on such terms and conditions as may be appropriate.

17. Establishment of Development Fund Account. (1) There is hereby established for the Agency a Development Loan Fund Account into of which all Development funds that may be received directly by or through the Agency shall be paid. (2) Any Development fund in the credit of the Account established under this section shall be disbursed to quatified and approved micro, small and medium enterprises through Participating Financial Institutions in line with guidelines approved by the Agency.

18. Funds of the Agency. Without prejudice to Section 17 of this Law, the Agency shall establish and maintain an account into which shall be paid and credited- (a) all subventions and budgetary allocations from the State Government; (b) gifts, grants-in-aid from national, bilateral and multinational organisations and agencies: (c) rents, fees and other internally generated revenues from services provided by the Agency; and (d) all other sums accruing to the Agency from time to time.

19. Expenditure of the Board. (1) The Agency may, from time to time, apply the proceeds of the Fund established under Section 18 of this Law- (a) to the cost of administration of the Agency (b) to the payment of the emoluments, allowances and benefits of members of the Board and for reimbursing members of the Board or of any committee set up by the Board and for such expenses as may be expressly authorized by the Boards; (c) to the payment of the salaries, fees or other remuneration or allowances, gratuities and pensions, and other benefits payable to the staff and other employees of the Agency, so however that no payment of any kind under this paragraph (except such as may be expressly authorized by the Board) shall be made to any person who is in receipt of emoluments from the Government of the Federation or of a State. (d) for the development and maintenance of any property vested in or owned by the Agency. (e) for maintaining general financial reserves subject to general or special directive that may be given in that behalf by the Commissioner in accordance with the provisions of this Law: and (f) to any other expenditure in connection with all or any of its functions under this Law. (2) Proceeds from the funds established under section 18(c) shall be remitted to the Treasury of the State Government and expended only in accordance with the Appropriation Law.

20. Annual Estimates and Accounts. (1) The Agency shall, not later than September 30th in each year, submit to the Commissioner an estimate of its expenditure and income (including payments to the Agency’s Fund) for the next succeeding year. (2) The Agency shall keep proper accounts in respect of each year and proper records to those accounts and shall cause its accounts to be audited within six months after the end of each year by auditors appointed from the list and in accordance wilh the guidelines supplied by the Auditor-General for the State.

21. Power to Accept gifts. (1) The Agency may accept any gift of land, money or other property on such terms and conditions, if any, as may be specified by the person or organization making the gift. (2) The Agency shall not accept any gift if the conditions attached by the person or organization making the gift are inconsistent with the functions of the Agency.

22. Power to Borrow. (1) The Agency may. from time to time, borrow by way of overdraft ar otherwise such sums as it may require for the performance of its functions under this Law. (2) The Agency shall nol. without the approval of the Board, borrow money which exceeds at any time the amount set by the Governor. (3) Notwithstanding subsection (1) of this section, where the sum to be borrowed is in foreign currency, the Agency shall not borrow the sum without the prior approval of the Governor.

23. Investment by the Agency. The Agency may, subject to the provisions of this Law and the conditions of any trust created by the in respect of any property, invest all or any of its funds in any security prescribed by law or in such other securities as may, from time to time, be approved by the Governor.

24. Limitation of Suits against the Agency, and Pre action notice etc. (1) Subject to the provisions of this Law, the provisions of the Public Officers Act shall apply against in relation to any suit instituled against an officer or employee of the Agency. (2) No civil suit against a member of the Board or any other officer or employee of the Agency for any act done in pursuance or execution of this Law or any other enactment or law, or of any public duty or authority in respect of any alleged neglect or default in the execution of this Law or any other enactment or law, duty or authority, shall lie or be instituted in any court unless it is commenced: within three months next afler the act, neglect or defauit complained of or, in the case of continuance of damage or injury, within six months next after the ceasing thereof; (3) No suit shall be commenced agaihst the Agenicy before the expiration of a period of one month after written notice of intention to commence the suit shall have been served upon the Agency by the intending claimant or his agent; and the notice shall clearly and explicitly state the cause of action, the particutars of the claim, the name and place of abode of the intending claimant and the relief which he claims.

25. Service of Documents. A notice, summons or other document required or authorized to be served on the Agency under the provisions of this Law or any other enactment or law may be served by delivering it to the Executive Secretary or by sending it by registered post addressed to the Executive Secretary at the principal office of the Agency.

26. Directives by the Governor. The Governor may give to the Board or the Executive Secretary such directives of a general nature or relating generallv to matters of policy with regard to the exercise of its or his functions as may be considered necessary and it shall be the duty of the Board or the Executive Secretary to comply with the directives or cause them to be complied with.

27. Power to alter list in schedule 1. Upon the recommendation of the Board, the Governor may by Order published in the State gazette add to or remove from the list of business enterprises in First Schedule to this Law.

28. Exempt from levies, charges or fees. The Agency shall be exempled from any levies, charges or fees which may be prescribed by the laws of the State.

29. Fixing of the seals. (1) The fixing of the seal of the Agency on any document shall be authenticated by the signature of the Executive Secretary and Chairman of the Agency or any authorized representative of the Board. (2) Any contract or instrument which, if made by a person not being a body corporate, will not be required to be under seal, may be made or executed on behalf of the Agency by the Executive Secretary or by any person, generally or specially authorized to act for that purpose by the Board. Schedule 1 DELTA STATE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT AGENCY LAW, 2014 [Sections 4 and 27] Subject to regulatory guidetines issued by the Central Bank of Nigeria or any other Statutory authority regulating same, the Agency shall consider the under listed enterprises as the local Micro, Small and Medium Enterprises for the disbursement of loans through Participating Finance Institutions: a. Central Bank of Nigeria Entrepreneurship Development Centre Graduates; b. Farmers; c. Cottage Industries and Cooperatives; d. Self Help Groups; e. Traders; f. Agricultural value chain activities; g. Artisans (craft workers); h. Services: hotels, schools, restaurants, laundry. etc. (excluding funds for the setting up of these ventures); i. Trade and general commerce (excluding importation and trading on imported items); j. Any other income generaling enterprise as may be prescribed by the CBN; k. Manufacturing; l. Educational Institutions; m. Renewable energy/energy efficient product and technologies; and n. Any other income generating enterprise as may be prescribed by the CBN. Schedule 2 DELTA STATE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT AGENCY LAW, 2014 [Section 7(5). Proceedings of the Board, etc

1. Subject to this Law and Section 53 of the Interpretation Law (which provides for decisions of a statutory body to be taken by a majority of its members and for the persons presiding at any meeting, when a vote is ordered, to have a second or casting vote), the Board may make standing orders regulating its proceedings or that of any its committees.

2. At every meeting of the Board, the Chairman shall preside and in his absence the members present at the meeting shall appoint one of their members to preside at the meeting.

3. The quorum at a meeting of the Board shall consist of the Chairman or,in an appropriate case, the person presiding at the meeting pursuant to paragraph 2 of this Schedule and six other members.

4. The Board shall for the purpose of this Law, meet not less than three times in each year and subject thereto the Board shall meet whenever it is summoned by the Chairman, and if required to do so, by notice given to him by not less than six other members, he shall summon a meeting of the Board to be held within fourteen days from the date on which the notice is given.

5. Where the Board desires to obtain the advice of any person on a particular matter, the Board may co-opt him to the Board for such period as it thinks fit, but a person who is a member by virtue of this paragraph shall not be entitied to vote at any meeting of the Board and shall not count towards a quorum. Committees

6.(1) Subject to its standing orders, the Board may appoint such number of standing and adhoc committees as it thinks fit to consider and report on any matter with which the Agency is concerned. (2) A committee appointed under this paragraph shall- a. consist of such number of persons (not necessarily members of the Board) as may be determined by the Board, and a person, other than a member of the Board, shall hold Office in accordance on the committee with the terms of his appointment; and b. be presided over by a member of the Board. (3) The quorum of any committee set up by the Board shall be as may be determined by the Board, (4) A decision of a committee of the Board shall be of no effect until it is confirmed by the Board. Miscellaneous

7. The fixing of the seal of the Agency shall be authenticated by the signature of the Chairman, the Executive Secretary or any other person generally or specifically authorized by the Board to act for that purpose.

8. Any contract or instrument which, if made by a person not being a body corporate, would not be required to be under seal may be made or executed on behalf of the Agency by the Executive Secretary or by any other person specially authorized by the Board to act for that purpose.

9. Any document purporting to be a contract, instrument or other document duly signed or sealed on behalf of the Agency shall be received in evidence and shall, unless the contrary is proved, be presumed without further proof Lo have been so signed or scaled.

10. The validity of any proceedings of the Board or of any of its committees shall not be affected by - a. any vacancy in the membership of the Board or Committee; b. any defect in the appointment of a member of the Board or Commitiee; c. reason that any person not entitled to do so took part in the proceedings of the Board or committee.

11. A member of the Board who has a personal interest in any contract or arrangement entered into or proposed to be considered by the committee shall forthwith disclose his interest to the committee and shall not vote on any question relating to the contract or arrangement.

12. No member of the Board shall be personally liable for any act or omission done or made in good faith while engaged in the business of the Agency.