The small and Medium Development Agency of Nigeria (SMEDA) reported a decrease in the number of MSMEs as it dropped by two million between 2017 and 2021.
Due to COVID-19 and other challenges, the country’s MSMEs dropped from d about 41 million in 2017 to 39 million in 2021.
The Director-General, SMEDAN, Dikko Radda, divulged this at an event organised by the Transparency Advocacy for Development Initiative in collaboration with SMEDAN in Abuja.
He said, “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.”
Radda, represented by the Director, Planning, Research, Monitoring and Evaluation, SMEDAN, Wale Fasanya, said both the public and private sectors had roles to play in the sustainable development of MSMEs in Nigeria.
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.
“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.
Radda added, “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.”