SMEDAN Says MSMEs Drop By 2M in Four Years
The Small and Medium Enterprises Development Agency of Nigeria reports that the number of micro, small and medium enterprises across the country dropped by about two million between 2017 and 2021.
The report states that the country’s MSMEs shrank from 41 million in 2017 to 39 million in 2021, due to COVID-19 and other challenges facing small businesses.
The Director-General, SMEDAN, Dikko Radda, disclosed this at an event organised by the Transparency Advocacy for Development Initiative in collaboration with SMEDAN in Abuja.
According to Radda, who was represented by the Director, Planning, Research, Monitoring and Evaluation, SMEDAN, Wale Fasanya, says both the public and private sectors had roles to play in the sustainable development of MSMEs in Nigeria.
“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 the COVID-19 pandemic, the challenges MSMEs have in accessing funds to start or grow their enterprise and the problems of globalisation.”
He added that “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 GDP dipped by 3.5 per cent in 2021 and only accounted for 6.2 per cent of external trade,” he stated.
He also noted that the contribution of MSMEs to Nigeria’s Gross Domestic Product dropped by 3.5 per cent in 2021, adding that MSMEs accounted for 6.2 per cent of external trade in the same year.
“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 says.
Yomi David, The Executive Director, Transparency Advocacy Development Initiative, explained that the event was organised to boost the roles of MSMEs in building capacity for national development.