The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the Deutsche Gesellschaft fir Internationale Zusammenarbeit (GIZ) have harped on the need to harness Nigeria’s Micro Small and Medium Scale Enterprises (MSMEs) potential for competitiveness.
They made the call at the 2022 National Conference on MSMEs organised by SMEDAN on Tuesday in Lagos.
The conference had as its theme: “Driving MSME Competitiveness via Public-Private Collaborations.”
Mr Olawale Fasanya, the Director-General, SMEDAN, in his welcome remarks said that the conference was designed to drive MSMEs activities across the country through a robust public/private dialogues and collaborations.
Fasanya said that over two million MSMEs closed shop as an aftermath of the COVID-19 pandemic and unfavourable business environment, among others from 2017 to 2021, adding that the agency planned to sort ways of increasing MSMEs contribution to the national export basket from the current 6 per cent to about 10 per cent within the next three years.
“The last National MSME Survey jointly conducted by SMEDAN and the National Bureau of Statistics put the total number of MSMEs in Nigeria at over 39 million.
“The sub-sector is very critical at the global, national and sub-national levels especially for socio-economic reasons.
“It is important to point out the fact that there was about two million MSMEs that closed shop between 2017 and 2021 largely due to COVID-19 pandemic, issues that bordered on general insecurity and lack of enabling environment,” he said.
Fasanya said that this, without doubt, had significantly set the entire economy backwards.
“Despite the challenges, the 39 million MSMEs account for 46.3 per cent of the Gross Domestic Product (GDP) and 87.9 per cent of total employment in Nigeria.
“According to the 2021 World Bank report, MSMEs represent about 90 per cent of businesses and more than 50 per cent of employment worldwide. Formal MSMEs contribute up to 40 per cent of the GDP in evolving economies.
“According to the 2021 MSME Survey report, MSMEs contribute only 6.21 per cent to the total export basket of Nigeria compared to 49.3 per cent in India FY2021 and 68 per cent of exports in China (FY 2020).
“This relatively low contribution of Nigeria’s MSMEs to exports are largely attributed to the poor competitive nature of the sub-sector,’’ he said.
Fasanya said that the agency is also interested in connecting Nigerian MSMEs to the huge regional markets.
Mr Markus Wauschkuhn, Cluster Coordinator, Sustainable Economic Development Cluster/Head of Programmes, Pro-Poor Growth and Promotion of Employment in Nigeria Programme (Giz-SEDIN), said that the support was part of achieving its goals ofincreased income and employment.
“The objective of the GIZ-SEDIN programme is to improve the employment and income situation of the MSMEs.
“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.
“Furthermore, the programme aims at facilitating local economic development and strengthening selected value chains, fostering economic literacy and entrepreneurship competencies and MSME development.
“The target groups of SEDIN are the owners and employees of MSMEs as well as members of other economically active low-income households.
“The programme is working at the federal, state, and local level and is currently working in nine focal states, namely Kano, Kaduna, Plateau, Ogun, Oyo, Lagos, Niger, Edo and Abia,” he said.
Wauschkuhn said that the objectives of the 2022 National Conference on MSMEs are to create awareness of the National Policy on MSMEs and the Implementation Framework.
He said the would foster state government active leadership in public private MSME development interventions. Engender the development of specific private sector led MSME development interventions in critical areas of the economy.
Mrs Kikelomo Longe, former Ogun State Commissioner for Industry, Trade and Industry, said that the conference was an avenue to brainstorm on creative ideas to solve the challenges around MSMEs growth.
Longe added that to address the root problems must be addressed to, so that they can then become sustainable businesses.
Mr Tola Johnson, Senior Special Assistant to President Mohammadu Buhari on MSMEs, said that public and private partnerships was the key ingredients toward growing the economy.
Prince Yemi Adeniran, the Statistician General of the Nigerian Bureau of Statistics, pledged that the agency would continue to ensure availability of data in all phases of development.
Otunba Bimbo Ashiru, Chairman of Odu’a Group, highlighted some challenges in the MSMEs sector as access to finance, enabling business environment, taxes, rural development and proper bookkeeping.
Ashiru, while delivering his keynote address said it was imperative to harness opportunities in the sub-sector; hinting that with the high production of cassava in Nigeria, Nigeria had no business importing starch.
During a panel session, MSMEs via the Nigeria Association of Small Scale Industrialists (NASSI), Lagos chapter, have stressed the need to have access to unlimited grants for business growth and competitiveness.
The conference was supported by GIZ and Sterling Bank Plc.
Source:NAN
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