Nigeria’s Micro, Small and Medium Enterprises (MSMEs) industry is not being optimised as it should be in spite of its critical role in national development.
Although MSMEs’ contribution to the Gross Domestic Product (GDP) has not been clear because of the lack of structure and data, the narrative is fast changing.
According to data by the Small and Medium scale Enterprises Development Agency of Nigeria (SMEDAN) and the National Bureau of Statistics (NBS), there are about 41.5 million MSMEs in Nigeria. Collectively they account for about 50 percent of Nigeria’s GDP.
There is growing consciousness of the critical role MSMEs play in economic development. Beyond job creation, MSMEs are critical to improving the living standards of citizens as well as important local capital formation. They also help drive innovation and competition in developing economies. Towards boosting the growth of MSMEs, there have been several MSMEs-supported programmes by the federal government through the Development Bank of Nigeria (DBN), Bank of Industry (BOI), Bank of Agriculture (BOA), SMEDAN and the Central Bank of Nigeria (CBN) which has been the biggest enabler of small businesses. The CBN intervenes with soft loans disbursed through the deposit money banks and the microfinance banks, especially the NIRSAL Microfinance bank.
Aside from the public sector-sponsored initiatives, there are private sector entities striving to support MSMEs sector. One of these is the MTN Revv programme which helps small businesses rethink and re-learn their operations to enable them to mitigate the effects of the COVID-19 pandemic.
This year, 200 MSMEs were selected to be a part of MTN’s accelerator programme, Y’ello 200, from across the country. The participants had a series of 11 master-classes by seasoned facilitators across various subsectors of the economy.
At the graduation ceremony recently, some beneficiaries and the coordinators spoke about the programme. Olubukola Ogunmola, CEO of Wanbuk and Device which produces pap, said he has benefited immensely. “Our workforce has also grown to enable us to meet the demands of our growing customers.”
Another beneficiary, Daniel Ikwong, CEO of Future IDEAS said: “I have been well equipped with best practices and thoroughly enjoyed every bit of the Y’ello 200 onboarding experience; the business has not been the same again.”
Also, Raheem Yusuff Olatunji, CEO, Yutex Entertainment said for him, the programme was a rewarding experience.
“I’m now a better manager of my business. It couldn’t have happened at a better time because the effect of the COVID-19 pandemic on my company was enormous.”
The Chief Enterprise Business Officer, MTN Nigeria, Lynda Saint-Nwafor, said, “With MSMEs accounting for 94% of all businesses in Nigeria and 84% of employment. So our goal is to empower MSMEs with the tool to make them thrive in the economy.”
Modupe Kadri, Chief Financial Officer, MTN Nigeria, said: “We have always believed SMEs are the wheels that drive any economy and that positioning them for growth means empowering and enabling them with the right digital solutions.”
Equally, Coca-Cola Nigeria Limited and the Whitefield Foundation recently empowered over 20,000 individuals with business skills across the 36 states of Nigeria through the Special Intervention Programme (SIP).
They said through SIP, they have been able to support the livelihood of young Nigerians following the economic effects of the COVID-19 pandemic which hit in 2020.
By the end of the programme in April, the participants had completed three different stages of courses anchored by seasoned facilitators.
During the graduation ceremony recently, the Director, Public Affairs, Communications and Sustainability of the firm, Nwamaka Onyemelukwe said: “We recognized that unemployment rates were on the rise with the poverty rates reaching a peak, and as a socially-responsible company focused on refreshing the world, we are also committed to making a difference in the lives of people and communities”.
Founder, Whitefield Foundation, Olufunmilola Johnson said, “We are excited by the success of SIP and this initiative was born out of the need to help make more successful people who will grow our economy in Nigeria.”
A beneficiary, Anu Oshilaja, founder of Annyz Fabric Bags, shared her life-changing story on the impact of the programme and the funding she had received to further her business. She also gifted hand-crafted bags to the women dignitaries at the event.
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