Stakeholders have cautioned that Nigeria’s aspiration to build a $1 trillion economy will remain elusive unless deliberate investments and policy reforms are directed towards unlocking the potential of micro, small, and medium enterprises (MSMEs).
The warning was issued at the Africa Global Economic Forum, held in Lagos over the weekend, where government officials, business leaders, and economic players emphasized the central role of MSMEs in driving sustainable growth.
Accounting for 96 per cent of all businesses, contributing nearly half of Nigeria’s GDP, and employing more than 80 per cent of the workforce, MSMEs were described as the backbone of the economy. Yet, participants noted, most remain underfinanced and underserved, curtailing 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 Eric Ntumba, Chief Executive Officer of Baobab.
Echoing this, Executive Director of Keystone Bank, Nnenna Okoro, identified access to finance as a critical bottleneck. She called for more innovative credit assessment models, including the use of SMEs’ digital footprints, cash flows, and business histories.
Participants also highlighted that across Nigeria, traders and young entrepreneurs possess the skills and creativity to thrive globally, but limited access to loans, modern markets, and business support systems continues to stifle growth.
Beyond financing, the forum emphasised the need for comprehensive policy reforms, structured mentorship programmes, and improved infrastructure to help MSMEs expand.
Speakers stressed that strengthening the MSME sector goes beyond business development—it is a strategic pathway to realising Nigeria’s trillion-dollar economy target, ensuring job creation, innovation, and inclusive growth.
As Africa’s largest economy grapples with global headwinds, the forum concluded that MSMEs must remain at the heart of the nation’s long-term economic transformation agenda.
