The German government through the Deutsche Gesellschaft fur international Zusammenarbeit (GIZ) has partnered the Small & Medium Enterprises Development Agency of Nigeria on developing policies to strengthen the activities of small businesses across the country.
Available data from the National Bureau of Statistics shows that, of 39,654,385 total number of MSMEs in Nigeria, 34,413,420 operate informally, which makes them untaxed, and unregulated.
This is as the total assets of the MSMEs were valued at N8.41 trillion in 2020, despite the COVID-19 pandemic induced challenges which affected global business earnings.
Speaking during the signing of the memorandum of understanding by both parties in Abuja on Tuesday, GIZ representative, SEDEC program coordinator, Markus Wauschkuhn said that the partnership is aimed at increasing employment and income of micro, small and medium enterprises in Nigeria.
According to him, the project will focus on removal of constraints in the business regulatory and institutional environment for ease of business operation.
“The intervention is posed to facilitate and promote reforms targeted at strengthening the capacities of stakeholders to better advocate, initiate and implement reforms that will result in improved performance of MSMEs in Nigeria,” he said.
According to GIZ, the goal of the partnership includes to improve the framework for MSMEs finance through stakeholders dialogue, enhancing business development services to MSMEs among others.
The Director General of SMEDAN, Dikko Radda in his remark noted that while the policy for the sector has been in existence over the years, its impact has been limited by poor implementation.
He however expressed optimism that the partnership would spur the desired growth of MSMEs across the country.
“Whatever good the MSME policy contains, if it is not properly implemented it will not make any meaningful impact.
“We are hopeful that with this partnership, we will be able to create employment opportunities as well as reduce poverty through the MSMEs,” he said.
Radda, speaking further, confirmed that there are about 3million registered MSMEs across the country adding that efforts were ongoing to ensure that others are registered.