A considerable number of the over 44 million micro and small medium enterprises (MSMEs) in Nigeria have shut down due to the challenging operating environment, according to Dr. Femi Egbesola, the National President of the Association of Small Business Owners of Nigeria (ASBON). The challenging environment includes economic instability, regulatory burdens, lack of access to finance, and infrastructure issues. These factors have led to the closure of numerous businesses, highlighting the need for long-term solutions to support the resilience of the MSME sector.
Dr. Egbesola emphasized that the MSME sector, dominated by micro-sized businesses, plays a crucial role in the economy. He suggested that setting up a specific ministry or regulating body for SMEs, similar to India's Ministry of MSME, could be advantageous for Nigeria. Such an agency could provide focused assistance, materials, and guidelines to help SMEs prosper and make a greater economic impact.
Meanwhile, Mrs. Folashade Ambrose-Medebem, the Commissioner for Commerce, Cooperatives, Trade & Investment, noted that several SMEs in Lagos State have benefited from empowerment programs, including financial literacy training, market linkages, and business networking. These programs aim to address the challenges faced by SMEs in the challenging business environment.
Dr. Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), encouraged SMEs to innovate and adopt tech solutions to take advantage of the opportunities presented by the economy. He highlighted common challenges faced by SMEs, such as consistent business guarantee, financing, and working-capital gaps, and urged them to become more tech-savvy to compete globally.
