Nigeria’s $1 trillion goal depends on small businesses
By the AFREEQUE newsroom, based on Business Day Nigeria
Illustrative image · Nasiru othman · Pexels · Licence PexelsMicro, small and medium-sized enterprises account for 96% of registered businesses in Nigeria, employ about 80% of workers and contribute nearly 50% of GDP. The FATE Foundation says their access to finance, energy and skills is crucial to Nigeria’s goal of a $1 trillion economy.
Micro, small and medium-sized enterprises account for 96% of registered businesses in Nigeria, but mobilise only about 1% of the private capital raised in the country, FATE Foundation executive director Ayomide Akindolie-Igwe said on Thursday at a press conference in Lagos, reports Business Day Nigeria.
These businesses employ about 80% of Nigerian workers and contribute nearly 50% of gross domestic product, according to Akindolie-Igwe. She believes their access to finance, energy and skilled workers must be improved to enable Nigeria to reach its goal of a $1 trillion economy.
Access to finance has been the main obstacle to growth identified by the FATE Institute for the past five years, while access to energy moved into second place this year, from around fifth place previously. Difficulties in recruiting and retaining skilled employees are the third obstacle cited, reports Business Day Nigeria.
The FATE Institute, the FATE Foundation’s research body focused on entrepreneurship, will hold its 12th annual series of entrepreneurship policy dialogues in Lagos on 19 November. The meeting will focus on improving SME productivity through access to energy, talent and finance, according to Business Day Nigeria.
