Why MSMEs are crucial in national economic growth -SMEDAN DG

The Director-General of the Small and Medium Enterprises Development Agency (SMEDAN) Dr Umaru Dikko Radda has stated there is no doubt about the importance of the Micro, Small and Micro Enterprise (MSMEs) sub-sector to the sustainable growth of the national economy.

He stated this at a media briefing commencing the 2021 national MSME survey in Abuja.

According to him, “The last National Survey of MSMEs indicated that the sub-sector contributed 49.78 per cent of the national Gross Domestic Product while it also accounted for over 76per cent of total employment and contributing 7.64 per cent to total export. As important as this subsector is, it is still faced with several challenges that have impeded its start, growth and sustainability.

“One of the key challenges that have limited the development and growth in the sub-sector is the absence of up-to-date and useable data of MSMEs. Unfortunately, the inclusive, effective and sustainable development of the Micro, Small and Medium Enterprises sub-sector is largely dependent on the availability of useable data.

“The compelling need to have an updated survey of the MSME sub-sector is further justified by the reviewed National Policy on MSMEs and recent socio-economic developments and global occurrences such as the COVID-19 pandemic, the cycles of economic recessions and unending terrorist, kidnapping and banditry activities.

“The Agency is fully aware of the need to have an operational framework to guide the development of the MSME subsector and this is why we assiduously worked with identified Stakeholders to review the National Policy on MSMEs which has gotten the approval of the Federal Executive Council. Another key document that is critical for the realisation of the Agency’s mandate is the National Survey on MSMEs,” he added.

Radda further commended the readiness of NBS to collaboratively work on the project as well as the supports from several development partners in achieving the aim and objectives of 2021 MSME survey.

Also speaking, the Statistician-General of the federation, Dr. Yemi Kale stated that among other uses, this year-round of the survey seek to establish a credible and reliable database for the MSMEs sub-sector in Nigeria and their contributions to jobs and wealth creation over a period of three years interval and also assess the contributions of the MSMEs sub-sector to the gross domestic product (GDP).

“In addition, it will also identify the gender distribution of ownership of MSMEs as well as identify the skills gap within the MSMEs sub-sector. Other objectives are to ascertain the top priority the area that needs government intervention and assistance in the sub-sector and identify possible financing windows for the MSMEs subsector for raising low cost finance.

“From the array of objectives highlighted above, you will agree with me that the survey is an important one not only to the Federal Government but also to state and local governments in their efforts to accelerate the growth and development of our economy”, he added.