Small Businesses Contribute 48 Percent To Nigeria’s GDP- Minister

By Timothy Choji, Abuja

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Nigeria‘s Minister of Digital Economy and Innovation, Bosun Tijani says small businesses are contributing 48 percent to the nation’s GDP.

He made this known in Abuja on Thursday, at the opening of a forum on job creation, organised by the office of the Senior Special Adviser to the President on Job creation, Micro Small and Medium Enterprises.

The Digital Economy Minister stated that President Bola Tinubu prioritised job creation and support for businesses.

 

While stressing the importance of MSMEs, the he noted that at least 80% of those gainfully employed in Nigeria are participants in the MSMEs terrain.

Economic Challenges

Commenting on the current Economic challenges Nigeria is facing he said they are not peculiar to the country but a global trend.

“Fourteen additional countries are expected to go into recession in the coming dates. Most of these economies are tied to the global economy just like our country Nigeria.

“This is why the administration of President Bola Ahmed Tinubu and Vice President Kashim Shettima are prioritizing job creation and support for small businesses.

“Everywhere you look at this country at the moment, you will see significant initiatives that are focused on creating jobs but also supporting small businesses as well,” he stated.

Tijani said; “GDP is really how governments determine whether they are doing well and whether we are contributing to the wellbeing of the nation. Small businesses in Nigeria contribute about 48 percent to our GDP so these small businesses you see around your offices or somewhere close to your home contribute 48 percent to our GDP that is how important they are.”

He also highlighted Nigeria currently transfers a lot of technical jobs abroad thus raising the profile of Nigeria.

On his part, the Information and National Orientation Minister, Mohammed Idris also reiterated government’s commitment to the sustenance of Small businesses in the country.

Idris, represented by the Director General, Voice of Nigeria, Malam Jibrin Ndace, also buttressed the commitment of the President Bola Tinubu’s administration to enhancing businesses in Nigeria, to boost the nation’s Gross Domestic Product (GDP).

 

He said: “Already, the Ministries, Departments, and Agencies responsible for job creation and the development of the MSMEs have started rolling out various initiatives to attain Mr. President’s objective for the sector.

“The Federal Ministry of Industry, Trade and Investment recently announced that it will be unveiling a groundbreaking innovation aimed at revolutionizing the job market and fostering greater employment opportunities for Nigerians through the establishment of the National Job Centre.

The Minister further disclosed that President Tinubu is poised to unlock the business potentials of the country.

Idris said; “The President is spearheading systemic reforms, eliminating wastage, and unlocking vast opportunities across the various sectors of the economy to boost our Gross Domestic Product (GDP) and generate employment for our teeming youth.

“The MSMEs in Nigeria have been our beacon of hope, as they have remained steadfast and resilient, unarguably demonstrating the ability to weather the storm in the face of enormous challenges, including the Covid-19 pandemic and its economic ramifications.”

There is also the Presidential Enabling Business Environment Council (PEBEC), which was set up to remove bureaucratic constraints to doing business in Nigeria and make the country a progressively easier place to start and grow a business,” he added.

 

Registration

The Director General of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii said that “the agency is collaborating with Police commands across the country to protect small businesses and also prevent encroachment on the nation’s industrial dev centres.”

Registrar General of the Corporate Affairs Commission, Hussaini Magaji, who was represented at the occasion, lamented that one-third of MSNEs in Nigeria are not registered.

He therefore, solicited for support from the media, urging media professionals to give enlightenment to small businesses that are not yet registered to do so.

Senior Special Assistant to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson said that over 384, 000 jobs would be created by the Bola Tinubu administration in the next four years but 100,000 of the jobs would be created by May 29, 2024.

He thanked Access bank for supporting businesses to thrive in the country.

Exchange Programme

The Forum was organised in collaboration with the Access Bank of Nigeria, and the Head, of non-financial Services and Emerging Businesses, Chioma Ogwo, represented the Management of the bank.

She said that the bank is injecting N50 billion into the MSMEs project, to empower small businesses.

About one million SMEs would be impacted through loans, with an interest of 15% per anum. Interest-free grants will also be given to deserving young Nigerians. Over 300,000 youths will be trained this year,” she said.

Ms Ogwo also saud that the bank planned to roll out a business exchange programme that will see beneficiaries traveling to China, Holland and other parts of the world to gain more knowledge on how to succeed in business.

 

 

 

Mercy Chukwudiebere

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