The Minister of State for Industry, John Owan-Enoh, has highlighted the significant role of Micro, Small and Medium Enterprises (MSMEs) in Nigeria's economy. He stated that MSMEs account for 96% of businesses in the country, contributing 48% to the nation's gross domestic product (GDP) and providing 87% of employment. This revelation was made during a town hall meeting with business operators in Calabar, organised by the Directorate of Manufacturing and MSME of the All Progressives Congress Presidential Campaign Council.
According to Mr. Owan-Enoh, MSMEs are the backbone of the Nigerian economy, and their contribution to national productivity, employment, and economic growth cannot be overemphasized. He emphasized that the sector's growth is critical to Nigeria's economic development and urged business operators and manufacturers to take pride in their contributions. The minister commended the Cross River Government for reviving the Micro-Enterprise Development Agency (MEDA), describing it as an important step towards supporting small businesses.
The Cross River Government has been collaborating with federal agencies, including the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Bank of Industry, and Nigerian Export-Import Bank (NEXIM), to strengthen business support systems. Mr. Owan-Enoh listed some of the federal government's interventions in the state, including an automotive training centre at the University of Cross River, a compressed natural gas conversion workshop, and a 65-kilowatt solar-powered electric vehicle charging station at the University of Calabar.
A memorandum of understanding has been reached with a South Korean team towards electric vehicle manufacturing in the state. The initiatives aim to strengthen technical capacity, promote local manufacturing, and create opportunities for businesses in the state. As Nigeria's leading cocoa-producing state, Cross River is expected to benefit from the new Nigerian Industrial Policy, particularly its emphasis on value addition.
The policy will provide opportunities for the state to maximize its cocoa resources through local processing and manufacturing rather than relying solely on exporting raw materials. Mr. Owan-Enoh stressed that the opportunity before them is to ensure that raw materials are processed locally, creating more value, businesses, and employment for the people. 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.
The minister described the MSME ecosystem as the actual economy of Nigeria, emphasizing that strengthening the sector is crucial for the country's economic growth. He encouraged business operators to take pride in their roles and recognize the impact of their contributions on the economy. The event provided a platform for stakeholders to discuss ways to support the growth of MSMEs in Nigeria.
The significance of MSMEs in Nigeria's economy cannot be overstated, and the government is working to create an enabling environment for their growth. With the right support and policies in place, MSMEs have the potential to drive economic growth, create jobs, and improve living standards for Nigerians.
Key points
- MSMEs account for 96% of Nigerian businesses and generate 87% of jobs.
- The sector contributes 48% to Nigeria's GDP and is critical to the country's economic development.
- The government is working to strengthen business support systems and create opportunities for MSMEs to grow.
