Number of MSMEs drop to 39m, SMEDAN cites COVID-19, access to funds, others | Dailytrust

Number of MSMEs drop to 39m, SMEDAN cites COVID-19, access to funds, others

The number of Micro, Small and Medium Enterprises (MSMEs) in the country has dropped from 41 million to 39 million. 

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) traced the reduction to the outbreak of Covid-19,  challenges MSMEs have in accessing funds to start or grow their enterprise and the problems of globalisation.

Director-General of SMEDAN, Dr. Dikko Radda, also said the contribution of MSMEs to the Gross Domestic Product dipped by 3.5 per cent in 2021.

The director-general noted that MSMEs only accounted for 6.2 per cent of external trade in the same year.

Radda disclosed this at a roundtable discussion organised by a Civil Society, Transparency Advocacy for Development Initiative (TADI) in collaboration with SMEDAN on Monday in Abuja.

He said 20,230 micro enterprises have benefitted from the agency’s Conditional Grant Scheme.

The roundtable had: “The role of SMEs, government, private sectors and the CSOs in international trading and its societal acceptability, as its theme.”

The SMEDAN DG, who was represented by the Director, Planning, Research, Monitoring and Evaluation, Wale Fasanya, stated that both the public and private sectors have roles to play in the sustainable development of MSMEs in Nigeria.

The SMEDAN DG said: “According to the 2021 MSME Survey, there are 39 million MSMEs in Nigeria. This is a significant drop from 41 million MSMES reported in the 2017 Survey Report.

“The major reason for the drop in the number of MSMEs could be traced to COVID19 pandemic, the challenges MSMEs have in accessing funds to start or grow their enterprise and the problems of globalization.

“According to the 2021 MSME Survey Report, the top priority areas of support that MSMEs need are power, funding/finance, tax and security.

“This could explain why the total MSMES’ contribution to Gross Domestic Product dipped by 3.5% in 2021 and only accounted for 6.2% of external trade.

“With these in mind, there is an obvious need for all the critical stakeholders to more than ever before put in place mechanisms to ensure that the potentials that lie within the MSMEs are fully exploited to create wealth, employment and reduce poverty in Nigeria.”

He promised that SMEDAN will continue to ensure that what needs to be done to develop this very important sub-sector is done.

Executive Director of Transparency Advocacy Development Initiative (TADI), Yomi David said the roundtable discussion would rapidly boost the roles of MSMEs in building capacity for national Development.

He called on the Federal Government to upgrade SMEDAN to a commission for maximum performance.

The executive director said: “Hence, we intend to after this second edition make a strong appeal and back it up with pragmatic advocacy that SMEDAN should be upgraded to a full fledged Commission for maximal performance and more effective output in the promotion and support for micro,small and medium enterprises development in Nigeria.”

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