…reaffirms commitment to MSME growth
The Federal Government said that it has mobilized over ₦9 billion in affordable finance to boost the Country’s Micro, Small, and Medium Enterprises (MSMEs).
The funding, facilitated through the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) under a counterpart funding arrangement is aimed at driving sustainable growth and innovation in Nigeria’s economy.
President Bola Ahmed Tinubu, announced this at the 2024 National MSME Conference, themed “GROW Nigerian: Sustaining a Digital and Innovation-Driven Economy,” held on Thursday in Abuja.
The President, who was represented by George Akume, secretary to the government of the federation, said that the ₦9 billion mobilized under SMEDAN is part of broader efforts led by Charles Odii, the agency’s Director General, to ensure that Nigerian small businesses have access to affordable finance.
According to him, The funding is expected to provide much-needed capital for small businesses, helping them innovate, scale, and contribute to Nigeria’s economic transformation.
President Tinubu also emphasized the importance of harmonizing the efforts of various government agencies and state actors to support the MSME sector, urging both domestic and international investors to seize the opportunities within Nigeria’s SME space.
He highlighted the vital role MSMEs play in Nigeria’s economy, accounting for 90% of businesses and contributing nearly half of the nation’s GDP and commended Odii for his leadership, particularly in reforming SMEDAN to increase efficiency and expand its impact on the MSME sector.
“I have also supported reform efforts by Mr Odii to reform and organize the agency for greater efficiency and impact through dedicated units and special initiatives such as the counterpart funding arrangement through which the agency has now mobilized over 9 billion naira in affordable finance to the sector. All these ideas and lofty achievements do not emerge out of a vacuum but from dialogues with critical stakeholders such as yourself,”
The President reaffirmed his administration’s commitment to making the Nigerian economy self-sustaining, reducing reliance on raw material exports, and localizing production processes. “Our SMEs are the key to unlocking Nigeria’s economic potential. With efforts like this, we can ensure equal distribution of resources and promote inclusive growth. Moving production and wealth-generating power to the people will ensure equal distribution of resources and tap into the full industrial potential of Nigeria,” the President said.
He pointed to initiatives like the Conditional Grant Scheme (CGS) and the expanded National MSME Clinics as examples of his administration’s focus on creating an enabling environment for small businesses.
The President also assured that ongoing reforms at the Central Bank of Nigeria (CBN) would stabilize the foreign exchange market and protect investments, emphasizing that investments in the sector are safe and crucial for Nigeria’s economic future.
On her part, Doris Uzoka-Anite, Minister of Industry, Trade and Investment said that through digital transformation, the MSME sector can reach heights never witnessed by the nation.
She explained that digital transformation can result in increased productivity as technologies can help MSMEs automate tasks, improve efficiency, and reduce costs.
She therefore urged businesses to embrace digitization, embrace technology, and innovation.
“For instance, a study by NASSCOM of India found that MSMEs that adopt digital technologies can increase their productivity by up to 20%. Additionally, digital technologies can enhance sales and marketing, helping MSMEs reach new customers, generate leads, and close deals more effectively. For example, a study by Google found that MSMEs that use online marketing can increase their sales by up to 15%.
“More importantly for MSMEs, digitization can also help them access finance more easily by providing lenders with access to their financial data and helping them build a credit history. Indeed, a study by the World Bank found that MSMEs that use digital financial services can increase their access to finance by up to 50% thereby overcoming one of the biggest challenges faced by numerous MSMEs,”
Also speaking at the event Charles Odii, Director General of the Small and Medium Scale Enterprise Development of Nigeria (SMEDAN) highlighted access to capacity development as one of the major challenges of MSMEs not being able to access finance.
Odii also highlighted access to capital and funding for business ventures, high costs of raw materials, energy, and overall business operations, taxation, high registration costs, and bureaucratic bottlenecks.
He said that the agency is committed to assisting SMEs through the “GROW” Nigeria initiative.
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