Experts have advocated a state-driven approach in unlocking the potentials of Micro Small and Medium Enterprises in the Country.
They made the call at a webinar organised by the Nigerian Economic Summit Group (NESG), in partnership with the Federal Ministry of Budget and Economic Planning, where they emphasised the critical role of Micro, Small and Medium Enterprises (MSMEs) in driving inclusive growth, job creation, and poverty reduction with the theme “Driving State-led Reforms for MSME Growth,” held virtually.
The discussion brought together government officials, business leaders, and development experts to chart pathways for scaling reforms at the state level.
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Daily Trust reports that Nigeria is home to over 40 million MSMEs, accounting for approximately 96 per cent of all businesses and providing jobs for 84 per cent of the workforce.
These enterprises contribute nearly half of the country’s GDP, with policymakers aiming to raise this to 70 per cent by the end of 2025. MSMEs are not just economic actors; they are critical growth engines.
However this critical sector faces daunting challenges. Access to finance remains a persistent barrier, with a funding gap estimated at over $32 billion. Many MSMEs are forced to borrow at interest rates as high as 27.5 per cent, making capital prohibitively expensive and stifling expansion.
Delivering the keynote, Director of SMEDAN Lagos, Dr. Bunmi Kole-Dawodu, described MSMEs as the engine and oil of Nigeria’s economy, accounting for nearly half of the GDP and more than 80 per cent of jobs.
He outlined Nigeria’s MSME governance framework, coordinated nationally through the Office of the Vice President and at the state level under governors, stressing that effective reforms require partnerships among NESG, SMEDAN, and state agencies.
Using Lagos as a model, he underscored the value of coordinated engagement across government tiers to maximize impact.
Panel discussions moderated by NESG’s Thematic Lead on Access to Markets, Dr. Weyinmi Eribo, showcased successful initiatives from Lagos, Enugu, and Plateau States.
Executive Secretary of the Lagos State Employment Trust Fund (LSETF), Ms. Feyisayo Ayanlade, highlighted the state’s affordable financing model, with loans at 9% annual interest and a 92% repayment rate, supported by financial literacy, tax education, insurance, and advisory services.
Also, the Director-General of the Enugu SME Center, Mr. Arinze Offiah, stressed the importance of reliable data in designing interventions.
He said linking grant access to data collection helped build trust among small businesses while providing insights for targeted policies.
The Director General of Plateau State Microfinance Development Agency (PLASMIDA), Hon. Bomkam Wuyep, noted that MSMEs remain the most viable option for job creation in states with limited white-collar opportunities, adding that they are central to poverty reduction and local development.
On his part, Group Managing Director of Init Facilities Services, Dr. Tunde Ayeye, urged a shift in Nigeria’s economic assessment from abstract macroeconomic figures to people-centered outcomes such as jobs, healthcare, and education. He warned against unsustainable interventions, advocating instead for reforms that directly improve livelihoods.
