By: Goodluck E. Adubazi, Abuja.

Nigeria’s drive to rebuild its economy around small businesses took center stage on Friday as the Minister of State for Industry, Trade and Investment, Senator John Owan Enoh, delivered a rallying call at the 20th MSME Summit and Exhibition hosted by the Raw Materials Research and Development Council (RMRDC).

Speaking before a packed hall of entrepreneurs, industry leaders and policymakers, Enoh hailed the Nigerian Association of Small and Medium Enterprises (NASME) for what he described as its “giant strides” in promoting MSME growth across all sectors of the country.

“Nigeria stands at a critical point,” the minister declared, stressing that industrial development must accelerate inclusive growth. “Our MSMEs are the backbone of the economy, creating millions of jobs, driving innovation and expanding local value addition.”

The minister acknowledged the hard truths facing the sector: inadequate infrastructure, limited access to finance and institutional bottlenecks continue to weaken the impact of Nigeria’s 39 million MSMEs.

He outlined the ministry’s strategy to tackle these issues through sweeping reforms, ranging from enterprise formalization and capacity building to partnerships with private investors, development agencies and state governments.

“Our focus is to create an enabling ecosystem where MSMEs can thrive, generate employment, grow incomes and reduce poverty,” Enoh said.

A major highlight of the minister’s address was the government’s commitment to developing industrial clusters and incubation centers across the country. These hubs, equipped with shared power, water, logistics support and workspace, are expected to drastically reduce operational costs for small businesses while boosting innovation.

“Clusters are catalysts for sustainable growth,” he noted. “They provide resources that individual MSMEs cannot easily afford.”

Incubation centers, he added, will help nurture start-ups with mentorship, digital tools, technical training and access to investment.

Federal Government Priorities Laid Out

The minister listed key national priorities aimed at transforming the MSME landscape:

Strengthening MSME financing mechanisms
Expanding cluster development nationwide
Enhancing synergy between agencies such as SMEDAN, NEPC and NIPC
Promoting value addition and industrial linkages
Improving the ease of doing business
Boosting backward integration to reduce reliance on imports

He emphasized that government alone cannot power this transformation.

“No single institution can do this,” Enoh stated. “Private investors, development partners, financial institutions and industry associations must join hands with us.”

The Financing Crisis: An Urgent Call to Action

Also speaking at the summit, a representative of the National Credit Guarantee Company underscored the gravity of the financing challenges facing Nigerian MSMEs.

He revealed startling figures: MSMEs contribute nearly 48% of the nation’s GDP and employ over 80% of the workforce, yet access to finance remains a major roadblock. High loan rejection rates and impossible collateral demands continue to choke business growth.

Consumer credit penetration, he noted, stands at under 3% of GDP, while over 40% of manufacturers report severe funding constraints.

“These statistics show the urgency of the theme: Revolutionizing Job Creation, Income Generation and Poverty Reduction Through MSME Development,” he said. “MSMEs are central to lifting millions out of poverty.”

A $158 Billion Gap

During a panel session featuring the Development Bank of Nigeria (DBN), the Bank of Industry (BOI) and other key financiers, experts warned that MSMEs face a staggering $158 billion funding gap — a shortfall that must be bridged to unlock Nigeria’s job creation potential.

Stakeholders agreed that expanding access to finance remains one of the most decisive enablers of economic growth.

With MSMEs active in all 774 local government areas, this year’s international summit brought together major stakeholders to chart a new path for revitalizing Nigeria’s small business ecosystem.

As the event continues, the minister praised the organizers and reaffirmed the government’s resolve: “By working together, we can unlock new opportunities, create millions of decent jobs and uplift communities across the country.”