The Federal Government of Nigeria disclosed on Wednesday that the Micro, Small and Medium Entreprises (MSMEs) sector accounts for about 76% of the nation’s labour force and contributes about 50% to the Gross Domestic Product (GDP).
This was disclosed by the Minister of State for Industry, Trade and Investment, Amb. Mariam Yalwaji Katagum at the maiden edition of the National Micro, Small and Medium Enterprises Discourse (MSMEs) with the theme “Little beginnings; Huge Impact” as part of the activities lined up for the celebration of the National MSME Week in Abuja.
“In Nigeria, a recent survey revealed that the MSMEs sector accounts for about 76% of the nation’s labour force and contributes about 50% to the Gross Domestic Product (GDP),” she said.
She added that MSMEs make up over 90% of all firms globally and account, on average, for 60 – 70% of the total employment and 50% of GDP worldwide.
The Minister revealed that the FG will sustain its interest in the sector for efficiency and growth citing that MSMEs plays a pivotal role in stimulating economic growth and providing employment to vulnerable groups such as youth, women and the poor.
“To this end, the Federal Government of Nigeria has continued to explore possible interventions to cushion the effect of the economic downtime, especially on micro, small and medium businesses by providing palliatives to enable recovery, sustenance and improvements under the Economic Sustainability Plan (ESP).
Some of these interventions include the MSME Survival Fund and Guaranteed Offtake Scheme.
Also, it is imperative to know that no nation can develop its economy without concerted efforts that facilitate private sector participation, financing and improving social services delivery hence the Federal Government will continue to provide the enabling environment by ensuring that policies and programmes towards MSMEs development are deliberately designed to yield the desired results,” the Minister stated.
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The Bank of Industry reported last week that it disbursed loans to over three million Micro, Small and Medium Enterprises (MSMEs) and 653 large enterprises between 2015-2020, creating 6.98 million direct and indirect jobs, with nearly N1 trillion worth of loans.