On November 1, 2023, in Abuja, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) urged the Federal Government to allocate 25% of its contracts to Small and Medium Enterprises (SMEs). This recommendation stems from the fact that SMEs currently contribute approximately 50% of the nation’s GDP and provide employment for roughly 60 million individuals, as stated by Mr. Charles Odii, the Director-General of SMEDAN.
Mr. Odii emphasized that the government, being the largest spender and employer in the country, should prioritize awarding contracts to small businesses. However, he noted that for this to happen, small businesses must be adequately equipped to compete for government contracts. In Nigeria, 96% of businesses fall into the small category, leaving only 4% as large enterprises.
Furthermore, Mr. Odii mentioned a recent meeting he held with young legislators and small business owners, which aimed to gain insights into their primary challenges, primarily related to costs and funding. He assured that SMEDAN would assist small business owners in reducing their production costs. He also mentioned that the agency plans to help at least one million entrepreneurs restructure their businesses to become eligible for funding from banks.
Additionally, Mr. Odii pointed out that an EU delegation has funds available for climate and renewable energy projects, and SMEDAN has established a renewable energy desk to attract these funds. He emphasized the role of legislators in advocating for policies that support the growth of small businesses.
SMEDAN’s Director-General expressed the agency’s commitment to ensuring that Nigerians at the grassroots level are aware of and benefit from government provisions. This would involve reaching out to various parts of the country, disseminating information through social media and town hall meetings, and using legislators to carry the message to their constituents.
Several legislators at the meeting pledged their support for SMEDAN’s efforts to promote SME growth. Rep. Ishaya Lalu, representing Mangu/Bokkos Federal Constituency in Plateau, expressed their commitment to support SMEDAN through budgetary allocations and praised President Bola Tinubu for appointing young individuals to key positions, expressing optimism about Nigeria’s future.
Source: National News Agency of Nigeria (NAN)
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