Nigeria’s Trillion-Dollar Goal Hinges On SMEs – Abbas

Speaker of the House of Representatives, Tajudeen Abbas, has stated that Nigeria’s ambition to become a trillion-dollar economy is closely tied to the growth and support of small and medium-sized enterprises (SMEs).

He emphasized that achieving this goal requires deliberate policy measures and effective coordination among institutions.

Abbas made the remarks on Monday during the Enterprise Nexus Summit at the House of Representatives Complex, which carried the theme, “Strengthening Local Enterprise Through Policy Support and Access.”

Represented by Deputy Speaker Benjamin Kalu, the Speaker explained that the summit was conceived not as a ceremonial gathering but as a practical platform where policies, ambition, and opportunities converge to produce tangible results for livelihoods.

He noted that while Nigerian entrepreneurs are brimming with ideas and drive, systemic challenges such as limited access to finance, inadequate infrastructure, lack of technology, and insufficient policy support continue to constrain SMEs.

“Entrepreneurs in Nigeria have never lacked courage or vision; what they have lacked is a system capable of supporting their energy,” Abbas said.

He further explained: “The Renewed Hope Agenda seeks to propel Nigeria into a trillion-dollar economy within five years, leveraging the potential of small and medium-sized enterprises. Global data shows that SMEs constitute over 90 percent of businesses worldwide and contribute nearly 70 percent of employment in many developing nations.

“In Nigeria, the 2024 PriceWaterhouseCooper survey indicates that SMEs represent over 84 percent of businesses, contribute about 48 percent of GDP, and account for nearly 97 percent of registered enterprises. Unfortunately, half of these businesses fail in their first year due to limited access to credit, poor infrastructure, inadequate technology, and management challenges.”

Abbas stressed the importance of policy support beyond access to credit. “Government policies must encourage financial institutions to lend to SMEs. Additionally, regulations should foster growth rather than hinder it. Complex licensing, high compliance costs, and opaque taxation systems only stifle entrepreneurial potential,” he said.

He also highlighted the need for inclusive policies that empower women, youth, rural artisans, and underserved communities.

The Speaker outlined key legislative initiatives aimed at strengthening SMEs, including the Innovation and Entrepreneurship Support Bill, 2025, which proposes a national framework for innovation hubs, tax incentives for tech startups, and mentorship partnerships with the private sector.

Additionally, he mentioned the Senate’s amendment to the Nigerian Export-Import Bank Act (NEXIM), 1991, which aims to unlock $1 billion in trade opportunities for small-scale exporters, especially in agriculture and manufacturing.

Other measures include the Factoring and Invoice Discounting Bill, intended to convert SME receivables into immediate working capital, and the Nigeria Tax Act 2025, which grants zero percent Companies Income Tax for small businesses with an annual turnover below N100 million.

Abbas also highlighted the link between economic empowerment and youth development, noting that providing viable economic opportunities reduces vulnerability to drug abuse.

“Economic empowerment is a powerful deterrent against drug use. When young people are meaningfully engaged in work, the temptation to experiment with substances diminishes,” he said.

Supporting this view, Chairman of the National Drug Law Enforcement Agency (NDLEA), Brig. Gen. Mohammed Buba Marwa (rtd), represented by Director of Prevention and Sensitization, Assistant Commander General Dankolo Mohammed, noted that while Nigerian youths are highly creative and capable, structural barriers limit their access to sustainable livelihoods.

Marwa cited the 2018 UNODC National Drug Use Survey, stating that around 14.3 million Nigerians aged 15 to 64, approximately 14.4 percent, used psychoactive substances in the preceding year. He warned that this prevalence, nearly three times the global average, is concentrated among those aged 18 to 35, who represent the country’s most economically active population of entrepreneurs and innovators.

He added that young substance users face challenges in accessing treatment and rehabilitation due to stigma, limited support systems, and inadequate services. While the NDLEA has strengthened efforts to reduce supply, addressing demand remains critical.

Marwa pledged continued collaboration with the National Assembly and partners to expand youth-friendly entrepreneurship programs, improve drug education, support community-based rehabilitation, and incentivize private sector engagement in youth employment.