Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, has said despite being the lifeblood of Nigeria’s economy, Micro, Small and Medium Enterprises (MSMEs) are currently constrained by regulatory complexities, limited access to finance, and high production costs, among others.
Uzoka-Anite made the assertion at the weekend in Abuja during the lunch of the
Informal Economy Report 2024.
Director General, Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), Mr. Charles Odili, declared at the same event that the era of lip service, on the part of government, to development of small businesses was now a thing of the past.
Uzoka-Anite said the sector had the potential to drive job creation, rural industrialisation, and innovation, adding that its significance extends across various sectors, contributing substantially to national development.
She said the MSMEs sector played a pivotal role in the implementation of President Bola Tinubu’s Renewed Hope agenda.
The agenda focuses on six key pillars, including improving ease of doing business, policy development, increasing access to financing and global markets, driving investments, and boosting job creation.
She said despite the obstacles, the federal government had initiated key interventions to empower small businesses, including the N200 billion presidential palliative programme, which offered grants to nano businesses and low interest loans to MSMEs.
Other interventions include the State Enterprise and Empowerment Programme (SEEP), providing affordable credit to micro enterprises, and the conversion to Compressed Natural Gas (CNG) trucks for goods transportation, among others.
Uzoka-Anite said while addressing key challenges and leveraging strategic partnerships, these initiatives aimed to unlock the full potential of the country’s informal sector, and drive economic diversification and sustainable growth in line with Tinubu’s vision for national development.
In his own remarks, Odili said small businesses remained the engine of the economy, and served as the pistons providing momentum.
He said the vast majority of the country’s 40 million small businesses resided in the informal sector, which accounted for millions of jobs in the economy. He said ensuring their survival and growth remained crucial for poverty elimination, rural industrialisation, and the enhancement of livelihoods – three core mandates of SMEDAN.
The SMEDAN director-general stated that government’s regulations used to be challenging for SMEs “but no more”.
He said the government was currently doing a lot for operators in the sector, adding that supposed beneficiaries are often not aware of these programmes.
Odili said the report will provide informed decisions to policy makers and planners and benefits for the sector by making the players more informed of the government’s interventions.
He urged SMEs to endeavour to join cooperatives to benefit from such interventions, which included loans and grants.
“We are not paying lip services to SMEs anymore,” he said.
The report examined developments in the informal sector, which were often underrepresented. It observed that the informal economy continued to play an undisputable role in the country’s economic fabric.
The report, among other things, revealed that the sector included a significant portion of Nigeria’s entrepreneurial activity, though it faced significant sustainability challenges.
James Emejo
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