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Small and Medium-sized Enterprises have been identified as a vital tool for revitalising Nigeria’s economy, offering a pathway out of the nation’s current economic difficulties.
A United States-based SME expert, Mr.Jide Afolabi, emphasised this in an interview with our correspondent on Thursday.
“Nigeria must re-examine its economic strategy, particularly focusing on the SME sector, which is responsible for driving substantial economic activity,” Afolabi stated.
He highlighted that SMEs play a significant role in economic diversification, innovation, and job creation, making them indispensable for sustainable growth.
In Nigeria, SMEs make up about 96 per cent of businesses and employ roughly 84 per cent of the workforce. Despite these figures, the sector faces several obstacles, including technological challenges, financial limitations, and regulatory barriers.
However, SMEs continue to demonstrate resilience, often surpassing larger corporations in terms of agility and innovation.
“SMEs are essential for job creation, particularly in sectors requiring a skilled workforce,” Afolabi explained.
“They create high-quality jobs that significantly contribute to both local and national economies, making them indispensable in reducing reliance on traditional industries and promoting economic resilience,” he stated.
Nigeria’s economy, historically reliant on the oil sector, faces a myriad of challenges such as power supply issues, inadequate infrastructure, and fluctuating exchange rates.
In contrast, the SME sector, while not without its difficulties, offers a promising alternative through its potential for innovation and diversification.
Afolabi noted that this could help reduce the country’s dependence on oil, paving the way for more sustainable growth.
To fully harness the potential of SMEs, Afolabi proposed a comprehensive approach that includes government reforms, the adoption of data-driven technologies, enhanced investment opportunities, and stronger public-private partnerships.
“The development of SMEs could transform Nigeria’s economy, ensuring that these enterprises can compete and thrive in the global market while boosting national economic performance,” Afolabi asserted.
His views align with those of economists and CEO of Financial Derivatives Co. Ltd,
Bismarck Rewane, who has similarly advocated for policies supporting SME growth, better cash flow management, and the importance of small businesses in driving Nigeria’s economy forward.
Afolabi urged the government, policymakers, businesses, and citizens to collaborate in revitalising the SME sector, believing that such a unified approach is essential for fostering innovation and addressing broader economic challenges.
By providing the necessary support, infrastructure, and policy frameworks, Nigeria can build a more resilient economy, with SMEs leading the charge.
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