Labour Party Presidential Candidate, Peter Obi, has taken to his official Twitter page today to highlight the importance of Micro, Small, and Medium-Sized Enterprises (MSMEs) in driving economic growth and development in Nigeria and revealing surest way of pulling Nigerians out of Poverty.
Supporting Small Businesses: Peter Obi’s Vision for Nigeria
As the country marks the Micro, Small and Medium-Sized Enterprises Day, Obi emphasized the crucial role played by MSMEs in the nation’s economy.
Obi shared significant statistics, revealing that Nigeria is home to approximately 40 million MSMEs, which make up 90% of all businesses in the country.
Notably, 70% of these businesses are owned by young entrepreneurs. Impressively, MSMEs contribute over 50% to Nigeria’s gross domestic product (GDP), with a staggering 98.8% falling within the micro cadre.
Highlighting the employment potential of MSMEs, Obi pointed out that these businesses account for nearly 90% of jobs in the country.
Considering Nigeria’s vast population of over 200 million people and its extensive land mass of 923,768km², Obi stressed the need for the birth of more small businesses.
Doing so will enable the nation to fully utilize its abundant human and natural resources.
However, Obi acknowledged the challenges faced by small businesses in Nigeria.
According to the Small and Medium Scale Enterprises Development Agency of Nigeria (SMEDAN), four out of every five SMEs fail before reaching their fifth anniversary due to various factors such as harsh economic environments, limited access to capital, and poor business practices.
These obstacles have hindered the growth and progress of micro-businesses in the country.
Addressing these challenges, Obi emphasized that the government must tackle issues such as the low formal educational and technical competence of SME owners, limited access to business funding, inadequate power supply, infrastructure deficit, inflation, scarcity of foreign exchange, and regulatory bottlenecks that burden small businesses.
Obi reiterated his long-standing belief that supporting small businesses is essential for lifting people out of poverty.
In addition to eradicating poverty, he emphasized that MSMEs have the potential to create numerous jobs, productively engage the country’s youth, and reduce crime, insecurity, and drug addiction.
Drawing inspiration from successful economies like China, India, Indonesia, Vietnam, and others, where MSMEs contribute over 60% to GDP and employment, Obi called for increased support for small businesses in Nigeria.
He stressed that the nation’s economic growth ambitions can only be achieved by empowering the private sector and fostering a thriving entrepreneurial ecosystem.
To facilitate Nigeria’s transition from a consumption-based economy to a production-driven one, Obi pledged to support a vibrant private sector that would effectively contribute to the country’s growth and development.
He emphasized the importance of aggressive funding for small businesses and the provision of fiscal and monetary incentives to encourage young entrepreneurs to establish businesses based on their proven skills, thus contributing to national progress.
Peter Obi’s recognition of the critical role of MSMEs in Nigeria’s economic growth and his commitment to empowering small businesses showcases his vision for a prosperous and sustainable future for the country.
Photo: Xlopherewesi
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