Experts have called for structural reforms to improve the lives of Nigerians and also boost the growth of Micro, Small and Medium Enterprises (MSMEs).
At a pre-summit dialogue on “Driving State-led Reforms for MSME Growth”, convened recently by the Nigerian Economic Summit Group (NESG), in partnership with the Federal Ministry of Budget and Economic Planning, experts highlighted the potential of MSMEs in unlocking economic growth in the country.
The event, which was held virtually, brought together government officials, business leaders, and development experts to explore how states can catalyse reforms that unlock the full potential of MSMEs—the engine of Nigeria’s economy.
Speaking during a panel session, GMD, Init Facilities Services, Dr Tunde Ayeye, warned against short-term interventions, which he described as “unsustainable”, and called for structural reforms that directly improve livelihoods, creating an environment where MSMEs can thrive.
Dr Ayeye stressed that to truly measure economic growth, Nigeria should shift from using abstract macroeconomic figures to people-centred indicators such as jobs, poverty reduction, healthcare, and education.
Director of SMEDAN, Lagos, Dr Bunmi Kole-Dawodu, who delivered the keynote address, stressed that MSMEs are not only the “backbone” of Nigeria’s economy but also the “engine and the oil” propelling growth, accounting for more than 80 per cent of jobs and nearly 50 per cent of GDP.
He highlighted Nigeria’s MSME governance structure, which is headed by the vice president and runs down to state-level councils presided over by governors. The National Council on MSMEs, which has SMEDAN as its secretariat, is the last in line.
In order to maximise the impact of MSMEs, Kole-Dawodu emphasised the necessity of coordinated action across all levels of government, citing Lagos as an example of a dynamic council actively expanding stakeholder involvement.
He stressed the importance of state-led reforms in advancing national economic growth, particularly when they are implemented through strategic partnerships with institutions such as NESG, SMEDAN, and state development agencies.
READ ALSO: Petrobras’ Return to Nigeria: A Boost for Deepwater Exploration But Corruption Concerns Linger
To achieve significant results while driving state-led MSME reforms, the panel session underscored the need for expanding access to affordable finance, deepening financial literacy, and building reliable data systems for evidence-based policymaking.
Other measures identified include reducing regulatory bottlenecks on business formalisation and management and strengthening local value chains through skills, digital adoption, and market access.
Another panellist, Ms Feyisayo Ayanlade, who is the Executive Secretary of the Lagos State Employment Trust Fund (LSETF), highlighted the activities of LSETF in helping MSMEs, particularly in financing. According to her, the organisation has an affordable finance model, which provides MSMEs with loans at a 9 per cent annual interest rate and maintains a 92 per cent repayment rate through financial literacy and business support.
She explained LSETF’s integrated approach, combining capital with business training, insurance, and tax education, noting that MSMEs account for 85–90 per cent of businesses and are Nigeria’s largest source of jobs.
Hon. Bomkam Ali Wuyep, DG, Plateau State Microfinance Development Agency (PLASMIDA), argued that MSMEs remain the most viable pathway for job creation in states with limited white-collar opportunities. He emphasised their role in reducing poverty and driving local economic development.
Mr Arinze Chilo Offiah, Director General of the SME Centre in Enugu State, emphasised the importance of accurate MSME data. He said that by linking data collection to grants, his team was able to overcome nano-enterprise mistrust, formalise businesses, and generate actionable insights for targeted interventions. This strategy strengthened Enugu’s SME ecosystem and increased small businesses’ access to financing.
The speakers agreed that MSMEs are central to job creation, poverty reduction, and inclusive development, and that state governments in collaboration with the private sector and development partners must lead reform implementation at scale.
This Pre-Summit Dialogue sets the stage for the 31st Nigerian Economic Summit (NES #31), themed “The Reform Imperative: Building a Prosperous and Inclusive Nigeria by 2030.”
NES #31, scheduled to be held on 6 to 8 October 2025 in Abuja, seeks to deepen national conversations on bold reforms, strategic investments, and collaborative actions required to position MSMEs as catalysts of long-term prosperity and inclusive growth for all Nigerians.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
