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Sustaining Small and Medium Enterprises for Nigeria’s Economic Growth
The SMS &P team – Small and Medium Scale Businesses and Partners – is fully dedicated to supporting SMEs. The team works closely with Microsoft’s network of partners. Marius Moantsoga, SMS&P Lead for Microsoft Nigeria explains the role of SMS in the economy. He spoke to emeka okafor.
The World Economy
It is hardly necessary to make the point that we are in the midst of an economic downturn that has permeated markets worldwide. The issue dominates our government’s agenda and is splashed across our media. Few of us have failed to feel its impact directly. This downturn is truly a global issue and is proof—as if it were needed—that we live in a global village, where the ripples of one uncertain market can be felt across the world.
Nigeria has not been isolated from the impact of this recession. In fact, according to the 2008 African Economic Outlook published by the Organisation for Economic Cooperation and Development (OECD), Nigeria’s growth rate is expected to fall to 4% in 2009 as a result of the Organization of the Petroleum Exporting Countries’ (OPEC) quota on oil production, as well as declining foreign investment.
In recent years there has been a strong focus on making Nigeria attractive to foreign investors and international corporations with the aim of spurring economic growth through imported expertise and capital. Inevitably there is some concern now as to how this economic climate will impact these growth factors.
However, the reality is that Nigeria’s small and medium enterprises (SMEs) account for 70% of the country’s industrial jobs and some 95% of its manufacturing activity. This is according to the African Development Bank (AfDB) and the OECD. As such, while we must be mindful of ensuring Nigeria remains an attractive prospect for foreign investment, it is vital that we remain committed to the growth and success of our own SMEs.
Sustainable Foundations
SMEs are the foundation for Nigeria’s sustained economic growth. They serve as an engine of job creation and skills development. Businesses built and nurtured in Nigeria utilise our local talent—both men and women—and encourage entrepreneurship and a culture of self-reliance. They also transcend different industries, spurring economic diversification and enabling the development of rural communities.
By creating an environment where people are encouraged to pursue their entrepreneurial ambitions, we can ensure that our talented citizens remain in Nigeria.
Challenging Times
Setting up a business and fostering its growth is a challenge in any economic climate. In today’s market conditions, just getting a business off the ground, let alone seeing it survive well into the future, is a daunting challenge.
According to the FATE Foundation, a Nigerian organisation developed to promote business and entrepreneurial development among Nigeria’s youth, rapid urbanization, coupled with a shrinking economy, has created an environment in which over 70% of the recent graduates who reside in urban areas are unemployed. While many of these graduates are eager to set up their own businesses, only a few have succeeded.
And the SMEs that are already up and running are finding it difficult to secure the credit they need to sustain their businesses in the face of reduced customer demand.
The reality is that the economic crisis requires us to take decisive steps to protect the years of economic growth we experienced. It is important to ensure that the progress made in creating an environment where such businesses could be set up and succeed is not undone.
The consensus across Africa is that SMEs will play a critical role in ensuring our survival through these times. In fact, the AfDB recently extended a US$100 million line of credit to Nigeria’s Intercontinental Bank so that Nigeria’s SMEs could access the money they need to sustain their operations.
Also, the African Commission just proposed partnering with the AfDB to establish a US$3 billion African Guarantee Fund to boost the development of SMEs in Africa. In the words of the Commission, such investment will unleash the power of African entrepreneurship by enabling young people to translate their good ideas into practical plans.
Our own government has likewise implemented a number of initiatives to support the development of SMEs. One is the Small and Medium Enterprises Development Agency of Nigeria, which works to establish business support centres and provide our SMEs with enhanced access to finance and management training
Another is the Small and Medium Industries Equity Investment Scheme fund, which requires all banks in Nigeria to set aside 10 percent of their annual after-tax profit for equity investment in small and medium sized business. Such initiatives are crucial to ensuring that funds are channelled to the businesses that need them most.
Taking Advantage of Technology
Entrepreneurs can also use the technology already at their disposal to surmount some of the challenges they face. It’s a fact that technology is effectively enabling individuals to set up and run a business from their homes.
Looking Forward
Enabling the success of our local SMEs is not just about facilitating Nigeria’s immediate economic recovery or ensuring long-term sustainable growth. It is also a vital element in seeing Nigeria compete on the global economic stage. The world’s greatest success stories all began as small enterprises, and some of the world’s most powerful nations, such as the United States, have been built on the strength of an entrepreneurial culture.
Among the many SMEs already in existence in Nigeria, or the budding entrepreneurs eager to set up new enterprises, there may well be the world’s next Bill Gates or Aliko Dangote. It is to Nigeria’s benefit, particularly in these tough times, that we continue to create an environment where such businesses are nurtured.
The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE, has reaffirmed Nigeria’s commitment to open governance, transparency and inclusive digital development as the Open Government Partnership (OGP) team formally presented the award and certificate received at the OGP Global Summit Spain 2025 to the Agency’s leadership.
Nigeria emerged as the overall global winner in the Digital Governance category in recognition of the country’s excellence in deploying digital tools and policies to strengthen government transparency, accountability, and citizen engagement. In addition, Nigeria received the Regional Award for advancing Open Digital Governance across Africa and the Middle East, reaffirming its leadership role in promoting open government principles and driving digital transformation across the region.
These recognitions were largely attributed to initiatives led by NITDA in collaboration with civil society partners, such as Dataphyte, which showcased innovative and inclusive approaches to digital governance at the summit.
The summit, which was organised in Vitoria-Gasteiz, Spain, brought together more than 1,500 high-level representatives of governments, civil society leaders, and policymakers from around the world to exchange experiences, best practices, and progress on open government initiatives and implementation on key issues.
Receiving the OGP delegation at NITDA, Inuwa described the recognition as a national honour rather than an institutional one, stressing that the award reflects Nigeria’s collective efforts across government, civil society and the private sector in advancing open governance principles through the digital space.
According to him, such global recognition comes with heightened responsibility to deliver on commitments made under the OGP framework.
“This is not just about NITDA. It is a national recognition, and every recognition comes with responsibility,” the DG said.
“If we fail to execute the commitments we have made, it will not only affect our image locally but also at the international stage. This is also not something NITDA can do in isolation,” he added.
Inuwa linked the achievement directly to the Renewed Hope Agenda of President Bola Ahmed Tinubu, noting that digital transformation, transparency, economic diversification, job creation and efficient public service delivery remain central presidential priority areas.
He emphasised that leveraging digital technologies to deepen openness and accountability aligns with national objectives of strengthening institutions, improving governance outcomes and building trust between government and citizens.
Highlighting the importance of collaboration, the NITDA boss underscored the role of the OGP platform as a catalyst for a strong multi-stakeholder approach in Nigeria’s digital ecosystem.
He called on civil society organisations, development partners, the private sector and other government institutions to provide technical expertise, guidance and sustained engagement to ensure effective implementation of agreed commitments.
“We need to leverage the OGP platform. We need your expertise, your guidance, your support and your commitment to hand-hold us in delivering on these commitments,” he said.
He further noted that “a multi-stakeholder approach in the digital space is critical to fostering a resilient ecosystem that delivers real value to citizens.”
Inuwa disclosed that NITDA has already begun internal reviews of its OGP commitments and has tasked its representatives, including Dr Rousseau, to work with colleagues to develop a clear execution strategy.
He proposed the creation of joint work streams with OGP stakeholders to support implementation, ensure accountability and keep all parties on track.
“We are humans. Oversight and collaboration help us stay focused. With commitment, nothing is impossible, and I believe these goals are achievable,” he added, assuring the delegation of NITDA’s readiness and political will to deliver on all agreed commitments.
Inuwa also welcomed the idea of engaging the political leadership of OGP, including the Honourable Minister of Budget and Economic Planning, with a view to briefing President Tinubu on the achievement. He noted that celebrating milestones is important, as it reinforces morale and demonstrates that Nigeria’s efforts in digital governance are gaining global recognition.
“It’s also good when there are wins, we should celebrate, because we too never knew that the little things we are doing are noticed not just within Nigeria, but globally, to the extent of earning us this award,” he asserted.
He concluded by expressing gratitude to the Nigerian National OGP Secretariat and the global OGP leadership, reaffirming NITDA’s commitment to strengthening collaboration and building a more productive working relationship that will translate open governance principles into measurable national impact.
Earlier in his remark, Mr Olusoji Apampa, who led the OGP deelegation, said the honours were earned through a strong partnership between government and civil society, with NITDA playing a critical role, particularly in commitments focused on improving digital governance in Nigeria.
Apampa expressed hope that the awards would serve as added momentum to deepen ongoing commitments under NITDA’s leadership and accelerate the practical implementation of reforms aimed at strengthening digital governance across the country.
PalmPay, Nigeria’s leading digital banking platform, has announced the launch of its ₦400 million festive rewards campaign, designed to reward users with cash prizes and fully sponsored international travel experiences for everyday transactions on the PalmPay app.
The campaign will run from December 17, 2025, to January 8, 2026. The campaign is designed to reward everyday transactions with extraordinary experiences. It runs alongside PalmPay’s Purple December brand campaign, which focuses on wrapping up the company’s key brand and community initiatives for the year.
At the centre of the rewards campaign is the PalmPay World Travel Carnival, an interactive card collection experience that allows users to earn city cards by completing transactions on the app. Users are required to collect five city cards – London, New York, Dubai, Sydney, and Cape Town and combine them into a World Card, which unlocks a share of the prize pool.
The more World Cards a user creates, the larger their share of the cash rewards. Any extra uncombined cards can be swapped with friends and other PalmPay users to help complete additional World Cards.
Beyond cash rewards, the Carnival also offers Free Global Trips. In each round, the top two users with the highest number of eligible transactions (₦100 and above) and at least one World Card will win an all-expense-paid international trip.
The travel grand prize covers:
- Visa fees
- Round-trip international airfare
- 5-day, 4-night hotel accommodation
- Side attraction
- Meal expenses
- Airport pick-up and drop-off
- All transportation for scheduled tour activities during the trip
Winners will be determined through a transparent leaderboard system, with prizes credited automatically at the end of each round on December 25, December 31, and January 8.
Participation is simple:
- Complete tasks on the PalmPay app, such as Airtime, Data, Transfers, and other specific transactions listed in the app, to earn cards.
- Collect all five city cards.
- Swap cards with friends to complete your collection.
- Combine cards to form a World Card and earn cash rewards.
- Perform more transactions to climb the leaderboard for a chance at the global trip prize.
To ensure fairness, PalmPay has instituted strict rules: no cheating, bots, fake accounts, or manipulation. Any violations may lead to disqualification or account bans. Additionally, the Free Travel Prize is limited to one per user throughout the campaign.
Speaking on the launch, Femi Hanson, Head of Marketing & Communication, “This festive rewards campaign is about turning everyday banking into meaningful value for our users. With the World Travel Carnival as the headline activation, we are reinforcing PalmPay’s promise of being the smarter way to bank—where smart financial decisions unlock bigger opportunities.”
The Rural Electrification Agency (REA) and the National Bureau of Statistics (NBS) have signed a Memorandum of Understanding (MoU) to conduct a nationwide energy survey aimed at closing long-standing data gaps in Nigeria’s power sector. The initiative is expected to guide policy, attract investment, and accelerate universal electricity access.
Signed in Abuja, the agreement establishes a National Energy Survey based on the Multi-Tier Tracking Framework (MTF), a globally recognized methodology that measures electricity access not only by grid connection but also by quality, affordability, reliability, and usage of electricity and clean cooking solutions.
The survey will be implemented under the Energy Sector Management Assistance Program (ESMAP) of the World Bank. Dr. Abba Aliyu, REA Managing Director/CEO, said the partnership underscores REA’s commitment to evidence-based rural electrification planning and will generate detailed insights on electricity access and off-grid solutions nationwide.
Prince Adeyemi Adeniran, Statistician-General of the Federation/CEO of NBS, emphasized that reliable statistics are essential for effective policymaking, assuring that NBS will provide technical oversight, sampling expertise, and quality assurance to meet global standards.
The survey will assess energy access, household affordability, expenditure patterns, and the adoption of off-grid technologies such as solar home systems, mini-grids, and clean cooking solutions. REA will provide sector expertise and policy alignment, while NBS manages regulatory approvals, methodology, and technical supervision.
Funded and technically overseen by the World Bank, the exercise will run for 18 months, with the resulting data expected to improve national energy planning, programme targeting, and private sector investment, particularly in underserved and rural communities.
Officials said the collaboration reflects the Federal Government’s commitment to strengthening inter-agency coordination, enhancing energy data availability, and advancing Nigeria’s goal of universal electricity and clean cooking access.
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