SMEDAN moves to expand MSMEs export contribution, tackle challenges

In a move to ensure that micro, small and medium enterprises expand their contribution to total export, the Small and Medium Enterprises Development Agency (SMEDAN) of Nigeria is working out modalities with partners to increase it from the current six to 10 percent by 2025.

Olawale Fasanya, director-general of SMEDAN made this known during the median edition of the National Conference on MSMEs organized in partnership with the Pro-Poor Growth, and Promotion of Employment (SEDIN) – a programme of the German Development Agency (GIZ).

“This relatively low contribution of Nigeria’s MSMEs to exports is largely attributed to the poor competitive nature of the sub-sector,” he said.

“As part of our culture of working in partnerships to achieve our mandate, we have used the huge benefit that is available in the public-private collaborations to organise this national conference,” he further said.

Citing data from the most recent MSME survey report, the director-general said Nigeria’s 39.6 million MSMEs contributed 6.21 percent to total export in 2021, while noting that the figure is abysmal when compared to India’s 49.35 percent and China’s 68 percent in the same period.

Fasanya also said that SMEDAN is working to address some of the critical issues hampering MSMEs productivity, noting that the agency would be launching a microfinance bank in the first quarter of 2023 to address the challenge of inadequate finance for nano, micro and small businesses.

In his address, Tola Johnson, senior special adviser to the President on SME, said the private sector and public sector are crucial in driving MSMEs competitiveness and addressing issues they face.

He urged SMEDAN to continue to work closely with the private sector to support MSMEs expand production and scale.

Similarly, Markus Wauschkuhn, the cluster coordinator, sustainable economic development cluster( SEDEC ) and head of programme, SEDIN-GIZ, said the partnership is aimed at increasing employment and income of micro, small and medium enterprises in Nigeria.

“To achieve the programme goal of increased income and employment, SEDIN is working to improve the business enabling environment and policy/regulatory framework for MSMEs development and employment promotion in selected states,” he said.

According to him, the project will focus on the removal of constraints in the business regulatory and institutional environment for ease of business operation.

GIZ’s goal of the partnership, he explained, included improving the framework for MSMEs finance through stakeholders’ dialogue, and enhancing business development services to MSMEs among others.

He said SEDIN-GIZ is also interested in connecting Nigerian MSMEs to the huge regional markets and working with SMEDAN on developing policies to strengthen the activities of small businesses across the country.