MSMEs account for 96% of businesses, contribute 48% to Nigeria’s GDP – Minister

Micro, Small and Medium Enterprises (MSMEs) account for 96% of businesses in Nigeria, contribute 48% to the country’s Gross Domestic Product (GDP) and provide 87% of employment, according to the Minister of State for Industry, Sen. John Owan-Enoh.

Owan-Enoh disclosed this on Sunday night in Calabar during a town hall meeting with business operators organised by the Directorate of Manufacturing and MSME of the All Progressives Congress (APC) Presidential Campaign Council.

He described MSMEs as the backbone of the Nigerian economy, saying their contribution to national productivity, employment and economic growth could not be over-emphasised.

MSMEs drive economic activity

Owan-Enoh said the scale of MSME participation in the economy underscored the importance of supporting small businesses and improving their operating environment.

• “If you look at the MSME ecosystem and appreciate the fact that about 96 per cent of businesses in our country are MSMEs, contributing about 48 per cent to our GDP and 87 per cent to employment, then you begin to wonder what else is left,” he said.
• “MSMEs are actually our economy. You all who are seated here are actually the economy of Cross River and Nigeria,” he added.

He noted that the town hall meeting marked the first public outing of the Directorate of Manufacturing and MSME ahead of the APC presidential campaign rally in the state.

Cross River strengthens support for small businesses

The minister commended the Cross River State Government under Governor Bassey Otu for reviving the Micro-Enterprise Development Agency (MEDA), describing it as an important step towards supporting small businesses.

• He said the state government was also collaborating with federal agencies, including the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Bank of Industry (BOI) and Nigerian Export-Import Bank (NEXIM), to strengthen business support systems.
• Owan-Enoh listed federal government interventions in the state, including an automotive training centre at the University of Cross River, a Compressed Natural Gas (CNG) conversion workshop and a 65-kilowatt solar-powered electric vehicle charging station at the University of Calabar.

He also disclosed that a Memorandum of Understanding (MoU) had been reached with a South Korean team towards electric vehicle manufacturing in the state.

Government steps to boost MSMEs and manufacturing

The Federal Government has introduced several initiatives aimed at strengthening small businesses, expanding local manufacturing and improving value addition across Nigeria’s agricultural sector.

• Nairametrics reported that the Federal Government introduced the Nigerian Industrialisation Policy in January 2026, with six pillars, including MSME-to-industry transition, value-chain development and import substitution. The policy targets increasing manufacturing’s contribution to GDP to between 20% and 25% by 2030.
• In October 2026, the Bureau of Public Procurement launched a free online training platform to help Nigerian MSMEs understand government procurement procedures and improve their chances of securing public contracts.

The Bank of Industry also unveiled an €85 million financing facility in July 2026 to expand Nigeria’s cocoa processing industry, strengthen local value addition and reduce dependence on raw cocoa exports.