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SMEs contribute 46.31% to Nigeria’s GDP

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By Abdulwasiu Usman

There are 39.6m nMSMEs serving as employers to 62.5m Nigerians.

Charles Odii, Director General/CEO of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has revealed that the subsector is making a significant impact on the nation’s economy. With a contribution of 46.31 percent to the national GDP and 6.21 percent to exports, the potential of small and medium enterprises is undeniable. The 2021 National Nano, Micro, Small, and Medium Enterprises (nMaSMEs) survey further shows that there are a staggering 39.6 million nMaSMEs, serving as employers to 62.5 million individuals. This thriving sector plays a major role in providing employment opportunities, accounting for a remarkable 80 percent of the workforce.

Gombe State has recently initiated a 3-day financial employment training program for 50 rural enterprises with the aim of cultivating and expanding small-scale businesses. This collaborative effort between SMEDAN and the Gombe State government aims to provide opportunities for the development and growth of these enterprises. In his remark during the opening ceremony of the training program in Gombe, Charles Odii, emphasized the objective of the program, which aims to deliver a comprehensive range of business development services to rural entrepreneurs.

Vital involvement of nMaSMEs impacts economic advancement.

Prof. Adeyinka Fusha, the Ag. Director of Partnership and Coordination, spoke on behalf of Odii, emphasizing that the training program was specifically designed to uplift rural entrepreneurs who find themselves at the base of the social hierarchy. Its objective was to provide necessary support for business owners in terms of fostering competitiveness, generating employment opportunities, and ensuring financial inclusion. He asserts that the crucial involvement of the sub-category, nMaSMEs, has made a significant impact on the progress of numerous nations globally in terms of economic advancement.

The sub-sector dominates the business landscape in Nigeria and holds the record for generating the most employment opportunities within the Nigerian economy. Additionally, the Director-General stated that the training encompasses three key elements which include awareness-raising, skill development, and financial support. Governor of Gombe State, Muhammad Inuwa Yahaya remarked on the training timeliness, taking into account the prevailing economic constraints experienced nationwide. This initiative would effectively bolster both the state and national economy, he added.

Govt is dedicated to collaborate with SMEDAN for more prospects.

Represented by Alhaji Abdulkadir Adamu, the Permanent Secretary of the General Services department, office of the SSG, the governor expressed gratitude towards SMEDAN and stressed the government’s dedication to collaborating with the organisation to promote further prospects for rural enterprises. Also, he mentioned that the state government had successfully arranged an investment summit that enticed numerous investors to the region. This achievement could be attributed to the state’s business-friendly atmosphere. Alhaji Nasiru Mohammed, Commissioner of Trade, Industry, and Tourism, expressed that the training will equip rural enterprises with essential business techniques, empowering them through knowledge and skills acquisition.

In addition, he stated that Governor Inuwa Yahaya had provided support to more than 2,000 Small and Medium Enterprises within the state. The governor has also set up a sprawling 1,000-hectare Industrial Park with a focus on export processing to bolster economic growth. This initiative serves as a catalyst for both local and foreign investors, providing them with a conducive platform to foster investment opportunities. He praised SMEDAN’s efforts in coordinating the training session, while also urging the attendees to remain focused and acquire new strategies that can enhance their entrepreneurial ventures.

96% of all business establishments are constituted by SMEs.

Moreover, SMEs play a crucial role in promoting economic growth by harnessing their immense capacity for creating jobs, advancing local technology, fostering economic variety, nurturing home-grown entrepreneurship, and accumulating wealth. Besides significantly contributing to Nigeria’s GDP at an impressive rate of 46.31%, SMEs form a whopping 96.9% of all business establishments and account for 87.9% of the country’s workforce. SMEs are actively contributing to production output, exports, and innovation, thereby serving as a crucial backbone in driving the prosperity of all economies.


Related Link

SMEDAN: Website


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AN-Toni
Editor
2 months ago

SMEs contribute 46.31% to Nigeria’s GDP. – There are 39.6m nMSMEs serving as employers to 62.5m Nigerians. – Express your point of view.

Adeoye Adegoke
Member
2 months ago

That’s amazing! The contribution of SMEs to Nigeria’s GDP is truly impressive, accounting for 46.31%. It’s fantastic to see the significant role that small and medium-sized enterprises play in driving economic growth and creating employment opportunities in the country.
With 39.6 million nMSMEs serving as employers to 62.5 million Nigerians, it’s clear that SMEs are a vital source of job creation and income generation. They provide opportunities for individuals to become entrepreneurs, contribute to the local economy, and improve their livelihoods. The growth and success of SMEs not only benefit the individuals directly involved but also have a positive ripple effect on the overall economy.
Furthermore, the dynamism and innovation demonstrated by SMEs are essential for fostering entrepreneurship and driving economic diversification. These businesses often bring fresh ideas, creativity, and adaptability to the market, contributing to increased competition and overall economic development.
It’s crucial to continue supporting and nurturing the growth of SMEs in Nigeria. This can be done through the implementation of policies that create a conducive business environment, provide access to finance, offer training and capacity-building programs, and promote entrepreneurship education. By empowering SMEs, we can further unlock their potential and drive sustainable economic growth in Nigeria.
I’m truly excited about the significant contribution of SMEs to Nigeria’s GDP and the opportunities they provide for employment and economic development. Let’s continue to support and celebrate the growth of these vital businesses! 🌟

Kazeem1
Member
2 months ago

SMEs make up 46.31% of Nigeria’s GDP, which is an incredible amount of contribution. It is essential for economic development and progress to assist and empower SMEs. Let’s keep fostering and empowering Nigerian entrepreneurs.

Taiwo
Member
2 months ago

The GDP of Nigeria is contributed by SMEs at 46.31%. Of the 62.5 million Nigerians, 39.6 million are employed by nMSMEs.The expansion of SMEs in Nigeria must be continuously encouraged and supported. Adopting laws that foster a favorable business climate is one way to do this. Small and medium-sized businesses actually make significant contributions to our GDP. It is for this reason that the government must work to create a climate that is more conducive to corporate growth.