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Business News of Friday, 19 November 2021

Source: punchng.com

FG plans 70% MSME contribution to GDP by 2025

Dikko Radda Dikko Radda

The Federal Government has said its target is for the Micro, Small and Medium Enterprises sector to account for 70 per cent of the country’s Gross Domestic Product by 2025.

The Director-General, Small and Medium Enterprise Development Agency of Nigeria, Dikko Radda, said this at a stakeholders’ dialogue on the implementation of the new national policy on MSMEs (2021-2025) in Abuja.

Radda was represented by the Director (Partnership and Coordination), Friday Okpara, at the event, which was part of the coordination mechanisms provided by the Investment Climate Reform facility on effective implementation of the policy.

According to him, the MSME sector currently contributes 49 per cent to the GDP and has provided over 59 million employment opportunities in the country. He expressed confidence that the target growth was achievable.

He said, “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 the 41 million 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 contribution 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.

“However, and in contrast to this, its share of total exports remains small, between 10.0 per cent and 29.9 per cent. These are figures the

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

The DG said the newly revised policy was a product of deep and wide consultations across Nigeria, adding, “The policy largely seeks to ensure MSMEs in the country are active, innovative and globally competitive.”

Radda said, “Understanding the challenges that have in the time past limited the implementation of past national policies and in our efforts to allow for ownership of the policy document by all identified stakeholders, we have ensured that the new national policy document detailed out a policy implementation matrix, where key mandates of MDAs informed the roles they are to play in the implementation.

“We are not unaware of the overlap of mandates but we are equally very confident that a proper coordination mechanism can thin out the challenges usually experienced in the implementation of past policies.”

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