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Business News of Friday, 12 November 2021

Source: www.guardian.ng

FG hopeful MSMEs’ contribution to GDP will hit 70 per cent by 2025

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The Federal Government has said its goal is to ensure the Micro, Small and Medium Enterprises (MSMEs) sector accounts for 70 per cent of the Gross Domestic Product (GDP) by 2025.

The Director-General, Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), Dikko Radda, disclosed this yesterday, at a stakeholders’ operationalisation of Public-Private Dialogue on the implementation of the new National Policy on MSMEs (2021-2025) in Abuja.

The event was part of the coordination mechanism provided by the Investment Climate Reform (ICR) facility on effective implementation of the policy.

The DG, represented by the Director, Partnership and Coordination in the agency, Friday Okpara, observed that the sector currently contributes 49 per cent to the GDP and has provided over 59 million employment in the country.

He, however, expressed confidence that the target growth was achievable.

“With over 41 million MSMEs, the minimum target to be realised before the expiration of the policy in 2025 is to ensure an enabling environment is created for 41million MSMEs to grow and create a minimum of one extra employment, which currently stands at over 59 million and also push the sub-sector’s contributions to the GDP from the current 49 per cent to 70 per cent by the close of 2025.

“The top five sectors according to the same document are Wholesale/Retail 42.3 per cent, Agriculture 20.9 per cent, Other Services 13.9 per cent, Manufacturing 9.0 per cent and Accommodation/Food services 5.7 per cent”, he stated.

Radda recalled that one of the core challenges the agency took up towards providing an enabling space was producing the first ever National Policy for MSMEs in 2007.

Noting that the newly revised policy was a product of deep and wide consultations across Nigeria, the DG added that the policy largely seeks to ensure MSMEs in the country are active, innovative and globally competitive.

He applauded the ICR facility for putting in place a proper coordination mechanism that would see every stakeholder as champions of MSME development.

A National Consultant with ICR facility, Dr. Ada Chidi-Igbokwe, stressed the need for a coordinated mechanism to ease the implementation of the policy.

According to her, MSMEs cut across many sectors of the economy, hence, achieving the objectives of the reviewed policy would make MSMEs development more effective and efficient.

Chairman, Business Visa and Training company, Mohammed Garba, urged the government to mandate its agencies to patronise local businesses.

“Most of the time, these MSMEs have no market to sell their products even after spending a lot on certification and documentation. Their products are also being rejected and people don’t even pay them when they purchase the products, which is frustrating. Government should make it a policy that every government agency must patronise Nigeria’s local businesses”, he stated.