Stakeholders have warned that Nigeria’s ambitious $1 trillion economy target remains a mere dream without strategic investment and policy reforms to unlock the potential of micro, small and medium enterprises (MSMEs).
They stated this at the Africa Global Economic Forum held in Lagos over the weekend. The forum, which brought together key economic players, business owners and government representatives, highlighted the critical role of MSMEs in driving Nigeria’s economic growth.
MSMEs constitute 96 per cent of all businesses in the country, contribute 48 per cent to the gross domestic product (GDP) and employ over 80 per cent of the workforce.
Despite the huge contribution to the economy, participants noted that many MSMEs remain severely underserved and underfinanced, limiting their ability to scale and compete globally.
“What you need to be able to provide is access, instant credit, digital savings capabilities and value-added services. Most of the microfinance banks that are actually thriving also incorporate things like financial literacy,” said the CEO of Baobab, Eric Ntumba.
The funding challenge emerged as a primary bottleneck hampering MSME growth, he said. Executive Director of Keystone Bank, Nnenna Okoro, emphasized the need for innovative approaches to credit assessment.
“We have to then look at other ways of assessing the creditworthiness of an SME, such as their digital footprint, their cash flows, their history in business, and maybe look at their interactions with their other partners,” Okoro said.
The participants stressed that across Nigeria, traders and young entrepreneurs possess the skills and creativity necessary to compete on the global stage.
However, they said, without adequate access to loans, markets and modern business support systems, their growth potential remains stunted. Beyond financing, the stakeholders called for comprehensive policy reforms, structured mentorship programmes, and improved infrastructure to help MSMEs scale effectively.
The discussions focused on creating actionable solutions that would strengthen the MSME sector and establish the right conditions for sustainable growth.
The forum underscored that supporting MSMEs is not merely about business development but represents a critical pathway to achieving Nigeria’s economic transformation goals while ensuring inclusive growth that benefits the majority of the population.
As Africa’s largest economy continues to navigate global economic challenges, the role of MSMEs in driving job creation and innovation has become increasingly vital to the country’s long-term economic stability and prosperity, it was observed.
