Opinion
Time To Develop Nigeria’s SMEs’
The United States Assistant Secretary of State for Economic and Business Affairs, Mr Charles Rivkin in Abuja recently urged Nigeria to focus on the development of its Small and Medium Enterprises (SMEs) sub-sector, stressing that “SMEs are the backbone of our economics.”
Mr Rivkin, who gave the charge at the first Nigeria-America Chamber of Commerce (NACC) and USA SMEs Financing Conference 2015 organised in collaboration with the Embassy of the U.S. Economic Affairs Section, Nigeria pledged the U.S. determination to support efforts to make Nigeria’s companies more competitive in the global economy.
This, he said, would be done by giving them affordable access to financing options.
In reality, the capacity of Nigeria as a nation to positively compete in the global economy and SMEs market depends on its ability to innovate and employ the relevant machinery to stimulate SMEs growth. Globally, economies ride on the back of SMEs as it contributes more than 50 per cent of economic growth of any average nation.
As major drivers of technology in most developed and industrial nations, SMEs play significant role in development as they encourage innovation, that is, invention of new things. Through SMEs, entrepreneurs convert opportunities to progress and replicate or duplicate existing concepts.
Nigeria as a nation seeking sources of revenue generation must recognise the power of SMEs and entrepreneurship in order to improve its Gross Domestic Product (GDP) which stands at 2.3 per cent today as against 6.7 per cent between 2014 and early this year. As a country that claims to be the Africa’s biggest economy, this is pitiable. Nigeria is a failure of the SMEs marketplace, which is a disorganised informal sub-sector.
The global standard is that the SMEs provide 90 per cent of employment for young people, but the reverse is the case in Nigeria. The nation’s economy is in distress because of lack of industries just as those willing to go into entrepreneurship ventures are not encouraged through affordable loans or financial support by the government. There is no way a country can grow without SMEs and this accounts for the reason governments find it difficult to pay workers’ salaries talk more of executing projects and providing infrastructure.
Federal and state governments are paying lip service to skills acquisition which will empower youths to go into micro-enterprises that may transform into sustainable venture capable of contributing to employment generation. If the nation is to move forward and the marketplace respond to the needs of the economy, the government must focus on the SMEs and ensure an enduring, productive and more profitable sector.
Government at all levels must pay attention to SMEs and encourage them to establish industries and invest in agriculture. Our economy should not be measured by what we see in other countries, but by what we do and have. There is need to encourage Nigerians to make breakthroughs in entrepreneurship.
Lack of trust on the part of few existing SMEs has been identified as one of the factors impeding their growth. They are denied loans by banks due to the lack of trust to repay. Yet they cannot access government financial support as most of them may not utilise the facility for the purpose it was taken.
Government is known for making bogus promises of providing funds for SMEs and partnering with them on the pages of newspapers, on television and radio, but does not fulfill such promises. There must be sincerity and honesty in all the facets of our lives if Nigeria must realise its dream. Managers of Nigeria’s economy must learn to use the original and home grown methodologies to solve complex problems peculiar to businesses, arms of governments and the individuals.
There are numerous areas of business that government can support people to invest in which include pharmaceutical, medical, manufacturing, agriculture, food production, telecommunications, construction, oil servicing, among others. Those Nigerians who have made it should invest in the country and not going abroad as well as empower individuals in their pursuit of identifying, maximizing and utilizing their God-given potentials.
It is high time we began to maximise the efficiency and productivity of our competent and experienced hands to get what we need in this country. This can only be achieved when we adhere to strict principles and possess the political will to implement policies with commitment.
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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