The federal government of Nigeria in a bid to drive Micro Small and Medium Enterprises (MSMEs) growth across the country has established several policies to aid their growth.
The government recently rolled out the MSMEs survival fund and also adopted Economic Sustainability Plan (ESP) with the aim of sustaining economic growth and development as well as optimizing local content and empowering local businesses to compete globally.
Speaking at the launch of the 34th edition of the Enugu International Fair organized by the Enugu Chamber of commerce, industries, Mines and Agriculture (ECCIMA) on Saturday in Enugu, Nigeria’s Minister of Industry Trade and investment Adeniyi Adebayo who was represented by Deputy Director, Multinational of the ministry Dr. Sunday Jaja said that a well structured and funded MSMEs sub-sector can contribute significantly to poverty reduction, wealth creation, Employment and also bring about massive development in Nigeria.
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Also speaking at the ceremony is the National President of the Nigerian Association of Chambers and Commerce, Industry, Mines, and Agriculture (NACCIMA), Mr. John Udeagbala who was represented by the president of the South East chamber of commerce, industry, Mines, and Agriculture, Mr. Humphrey Ngonadi lauded the policies introduced by the government towards the MSMEs, stating that it will bring about development in the country.
He further added that the most impressive performance of the economy of developed countries across the world is the commitment toward human capital development.
In his words, “A nation which is unable to develop skills and knowledge of its people and utilize them effectively in nation building will be unable to develop anything else. The advancement we see in science and technology and every other field today is the strategic commitment to human capital development. When human capital development is properly harnessed and leveraged, it could lead the country to sustained prosperity.
“Therefore, if Nigeria wants to achieve meaningful and sustainable growth, it must begin to aggressively develop its human capital for inclusive growth of the economy.”
The recent initiative by the Federal Government in acknowledging and contributing to the development of MSMEs in the country is remarkable. It is therefore interesting to note that no nation thrives without intentional and concentrated efforts from the government to implement policies and programs to enable and boost MSMEs’ growth.
For the Nigerian economy to continue to grow, SMEs need a lot of support, they are critical drivers of growth and sustainable development in any nation. MSMEs are business entities that have about seventy-five employees or fewer. In addition to employing a large percentage of labor in Nigeria, the sector has also been able to drive inventions leading to an increase in job creation.
Last year, according to the Nigeria Bureau of Statistics (NBS), conducted, small and medium enterprises in Nigeria contributed about 48 percent of the national GDP in the last five years. With a total number of about 17.4 million MSMEs, they account for about 50 percent of industrial jobs and nearly 90 percent in the manufacturing sector.
Despite numerous challenges such as inadequate working capital, unfriendly polices, harsh environment, stiff competition from larger companies, difficulties in sourcing raw materials, and low capacity utilization, among other challenges faced by MSMEs, their significance to the Nigerian economy cannot be overemphasized.