In a momentous step that demonstrates the government’s dedication to strengthening Nigeria’s informal economy, the federal government has unveiled the Nigeria Informal Sector Report 2024. This initiative highlights the crucial role of the informal sector in driving employment, generating income, and fostering economic resilience, especially during recent challenging times.
Dr. Doris Uzoka-Anite, the Minister of Industry, Trade, and Investment, officially launched the report in Abuja. She underscored the administration’s commitment to promoting the growth of small and medium-sized enterprises (SMEs) under the leadership of President Bola Ahmed Tinubu. The minister emphasized the significance of leveraging supportive government policies to empower SMEs and enhance their contributions to the national GDP.
Developed by Moniepoint Micro Finance Ltd in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the report was introduced during a formal ceremony in Abuja.
During his presentation, Charles Odii, the Director-General of SMEDAN, outlined the agency’s ambitious “Grow Nigerian” agenda, aimed at accelerating growth and prosperity for small businesses. This agenda focuses on expanding local production capacities, improving both domestic and international market access, and creating an enabling environment for over 40 million small businesses, which collectively provide more than 60 million jobs.
Odii highlighted SMEDAN’s commitment to shielding businesses from inflationary pressures while empowering them to enhance production standards and competitiveness. The “Grow Nigerian” strategic blueprint aims to address Nigeria’s foreign exchange and unemployment challenges through diversified import substitution, fostering economic engagement and foreign currency earnings.
In addition to collaboration with other government agencies to streamline regulations, SMEDAN is also optimizing them for growth and productivity. This comprehensive approach aims to remove barriers to formalization and growth, offering SMEs affordable financing, access to lucrative markets, mentorship, and capacity building.
In alignment with the government’s food security mandate, SMEDAN is actively supporting smallholder farmers by promoting global best practices in agriculture, from seed selection to harvesting techniques.
According to Odii, SMEDAN’s mandate for SMEs can be encapsulated in the acronym “GROW”: Guidance, Resources, Opportunities, and Workforce support. The agency’s focus extends to seven priority sectors, including agriculture (EAT Nigeria), manufacturing (PRODUCE Nigeria), tourism (VISIT Nigeria), fashion (WEAR Nigeria), creative industries (WATCH AND LISTEN Nigeria), education (TEACH Nigeria), and services (PATRONISE Nigeria).
Odii also highlighted SMEDAN’s innovative “One Local Government, One Product” initiative, designed to harness local products for both domestic consumption and exports across Nigeria’s 774 Local Government Areas (LGAs). This initiative provides financial support to cooperatives, structured with a 70% loan and 30% grant arrangement.
Babatunde Olofin, the Managing Director of Moniepoint MFB, emphasized the report’s role in enriching policymakers’ understanding and stakeholders’ perspectives on Nigeria’s informal economy. He underscored the pivotal role of the sector in providing substantial employment and income opportunities, particularly for those outside the formal job market.
Olofin reiterated that the Nigeria Informal Economy Report serves as essential reading for individuals and organizations interested in comprehending the dynamics of the informal sector, aiming to foster a more inclusive and sustainable economic landscape. He reaffirmed Moniepoint’s commitment to financial inclusion and improving access to the financial system, which is vital for enhancing business and consumer financial well-being.
A panel discussion concluded with a resounding call for continued collaboration and concerted efforts to support and elevate Nigeria’s vibrant informal economy towards sustainable growth and development.
