SMEs CONTRIBUTED 48% TO NATIONAL GDP IN LAST FIVE YEARS – NBS

No doubt Small and Medium Enterprises (SMEs) efficiently provide and deliver goods and services to regions where they are needed, create job opportunities, develop their communities, and foster healthy competition across all sectors of their economies by always coming up with innovations, which differentiates it with ordinary small business.

Reports show that the world is progressing rapidly and 600 million jobs will be needed by 2030. This should make the support of the SMES a high priority for governments around the world. Because their contributions are essential to economic growth and they enhance economic output while simultaneously improving the day to day welfare of citizens. Small and Medium Enterprises (SMEs) play major roles in world economies, particularly in developing countries.

According to the Nigeria Bureau of Statistics, small and medium scale enterprises (SMEs) in Nigeria have contributed about 48% of the national GDP in the last five years. With a total number of about 17.4 million, they account for about 50% of industrial jobs and nearly 90% of the manufacturing sector, in terms of number of enterprises.

Though significant growth has been achieved in the MSME sector, there is still much to be done. According to an article on “developing Africa through effective, socially responsible investing”, “there still exists a ‘missing middle’, which finds it hard to access funds due to the category of funding they belong to.” Other challenges encountered by the sector include lack of skilled manpower, multiplicity of taxes, high cost of doing business, among others

The Federal Government recently, released new details on the Micro Small and Medium Enterprises (MSMEs) support scheme being rolled out under the National Economic Sustainability Programme. According to estimates provided, the sum of N50 billion will be used to provide payroll support, N200 billion for loans to artisans,.

MSMEs support scheme have since kicked off to cushion the effect of lockdown imposed on the country earlier in the year which crippled the economy.

Federal Government 2020 empowerment loan for entrepreneur is another facility made available for upcoming entrepreneur and business owners.

What is Agric Small and Medium Enterprise Scheme (AGSMEIS)?

With the CBN AGSMEIS Loan, you can access up to N10M at 5% per year from the Agric, Small and medium enterprise scheme (AGSMEIS), an initiative from Central Bank of Nigeria (CBN); this is without collateral.