SMEDAN: SMEs account for 96% of businesses

SMEDAN: SMEs account for 96% of businesses

The Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, has highlighted the crucial role of Small and Medium Enterprises (SMEs) in Nigeria’s economy, noting that they make up 96% of businesses, contribute 48% to GDP, and employ 84% of the workforce. Speaking at the launch of the D-8 SME Centre in Abuja, Odii emphasized that empowering SMEs is essential for achieving various Sustainable Development Goals (SDGs), including poverty reduction, gender equality, decent work, and innovation.

He described the establishment of the D-8 SME Centre in Nigeria as a testament to the country's vibrant entrepreneurial ecosystem and a recognition of Nigeria’s leadership in SME development across the Global South. Odii noted that the initiative aligns with President Bola Tinubu’s "Renewed Hope Agenda," which prioritizes enterprise development, job creation, and regional cooperation.

Odii also pointed out that SMEs across D-8 member countries—such as Bangladesh, Egypt, Malaysia, and Nigeria—face similar challenges like limited access to finance, inadequate infrastructure, and regulatory hurdles. The D-8 SME Centre is expected to serve as a strategic platform for collaboration, standard harmonization, market access, and knowledge sharing among member states.

He further explained that SMEDAN’s “Grow Nigerian” strategy aims to scale local SMEs beyond subsistence to competitive businesses capable of integrating into regional and global value chains. The agency is focusing on key sectors such as agriculture, fashion, tourism, and technology, and is also promoting digitalization, regulatory reforms, and partnerships to reduce business costs and enhance competitiveness. Ultimately, Odii reiterated the importance of building the economy from the grassroots by supporting entrepreneurs where they are.