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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.
Oladipupo Adebutu, Peoples Democratic Party (PDP) governorship candidate in Ogun State, has alleged that all state governors in Nigeria are benefiting from and misappropriating local government allocations.
Oladipupo Adebutu
Adebutu made the remarks at the Ake Palace in Abeokuta during a meeting with the Egba Traditional Council, where he sought the support and blessings of traditional rulers for his governorship ambition.
He was accompanied by his running mate, Lateefat Sowunmi-Kolapo; the PDP senatorial candidate for Ogun Central, Iyabo Obasanjo; the Ogun State PDP Chairman, Abayomi Tella; and other party leaders and candidates.
Addressing the traditional rulers, Adebutu declared that granting full financial autonomy to local governments would be one of the defining policies of his administration.
“I will do something that will stun this nation and put us in the right direction. Local governments shall get their own money,” he said.
He added: “We must make sure we get local government autonomy. I have been reiterating to you that I, Oladipupo Olatunde, son of Adebutu, was at the National Assembly twice, and I can boast that I didn’t embezzle public funds. How many politicians can say this?”
Adebutu accused governors across party lines of diverting local government funds.
“It’s not a party thing. Both APC and PDP, all the governors are embezzling local government allocations. It’s not a secret,” he said.
He argued that local councils were able to deliver more development when they had greater control over their finances.
On infrastructure financing, Adebutu said governments must adopt new approaches rather than relying on borrowing.
“You don’t borrow money for infrastructure anymore,” he said, while promising to construct roads that would improve connectivity between Ogun State and Lagos.
In his remarks, Abayomi Tella, State Chairman of the PDP, lamented that the local government system in the state is in a state of collapse, recalling that as a former council chairman, he received N200 million as an allocation and used it to construct four roads within his local government.
He expressed concern that the current local government chairmen cannot point to any project of similar impact, attributing the situation to a lack of financial autonomy.
The PDP chairman said he strongly believes in Adebutu’s advocacy for local government autonomy, stressing that Adebutu is prepared and ready to lead the development of Ogun State.
Sowunmi-Kolapo, deputy governorship candidate, called on her kinsmen to support her political aspiration, noting that she has continued to support the development of Egbaland.
Also speaking, Iyabo Obasanjo, PDP candidate for Ogun Central Senatorial District, said that after leaving the APC following her unsuccessful governorship bid, she came to believe that Adebutu has the vision and political will to actualise her aspirations and manifesto for the people.
Obasanjo further noted that no political party has a more formidable team in Egbaland than the PDP, urging Egba monarchs to throw their weight behind the party in the interest of the people.
In his welcome address, the Alake and Paramount Ruler of Egbaland, Oba Adedotun Aremu Gbadebo, described Adebutu as “trustworthy and reliable,” declaring his support for the party’s flag bearer ahead of the 2027 governorship election.
The Alake recalled his long-standing relationship with Adebutu’s father and expressed confidence in Adebutu’s character and leadership qualities.
“The son of a lion must resemble the lion. In fact, he is an even better version of his father,” Oba Gbadebo said.
Federal high court in Abuja has ordered the final forfeiture of N941,994,079.86 linked to suspected ghost workers uncovered in the integrated payroll and personnel information system (IPPIS) to the federal government.
IPPIS is a centralised payroll system the federal government introduced to manage the salaries of federal public sector employees.
Binta Nyako, presiding judge, gave the order following an application filed by the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
“That an Order is hereby made for the Final Forfeiture to the Federal Republic of Nigeria the Sum of N941,994,079.86 seized during investigation into the IPPIS Payroll scam in the year 2024,” Nyako ruled.
Okor Odey, ICPC spokesperson, announced the forfeiture in a statement issued at the weekend.
The ICPC spokesperson said investigations by the commission uncovered “large-scale payroll fraud involving hundreds of non-existent public servants, with a total sum of N941,994,079.86 traced to accounts linked to the scheme”.
Odey said a review of the IPPIS conducted in 2023 revealed the “existence of numerous “ghost workers” embedded within the payrolls of several Ministries, Departments and Agencies (MDAs)”.
According to him, following the findings, President Bola Tinubu approved a “comprehensive audit” of the IPPIS.
He added that a joint investigation between the ICPC and the office of the accountant-general of the federation in April 2025 led to the discovery of 587 suspected ghost workers on the IPPIS platform.
“Investigations revealed that fictitious IPPIS identities had been created for non-existent personnel across multiple MDAs, with salaries paid over extended periods into accounts belonging to individuals and companies,” Odey said.
“In many cases, the account names did not correspond with those of the purported employees, while some accounts received multiple salary payments simultaneously.”
The ICPC spokesperson said the agency placed post no debit (PND) restrictions on all identified accounts to freeze the funds suspected to be proceeds of fraud.
He said the affected MDAs include the Nigeria Police Force (NPF), federal ministries of defence, education, agriculture and rural development, works, water resources, and interior.
Others are National Board for Arabic and Islamic Studies, University of Benin, University of Calabar, University of Nigeria, Nsukka, University of Maiduguri, Ahmadu Bello University, Zaria, and the office of the accountant-general of the federation.
The ICPC spokesperson said 120 civil servants were cleared after their identities and employment status were confirmed following a verification exercise in 2025.
He added that 467 bank accounts remain linked to unverified individuals with holders yet to be identified.
He noted that the N941.9 million currently frozen in the 467 bank accounts has been forfeited to the federal government.
He disclosed that the agency published the names of the 910 individuals suspected to have benefited from the purported fraud in two national dailies on March 18, 2026.
The Nigerian Maritime Administration and Safety Agency (NIMASA) has introduced the Blue Economy Accelerator Programme, a strategic initiative designed to identify, nurture, and accelerate innovative startups that will contribute to the sustainable growth of Nigeria’s marine and blue economy.
The Blue Economy Accelerator Programme is aimed at attracting young, vibrant minds with innovative ideas capable of transforming Nigeria’s maritime ecosystem.
Dr. Dayo Mobereola, Director-General of NIMASA, said that through the initiative, participants will receive structured business development support, industry mentorship, and technical guidance to convert promising concepts into viable ventures that address critical challenges and opportunities within the blue economy.
“The programme reflects NIMASA’s commitment to supporting the implementation of the vision of the Federal Ministry of Marine and Blue Economy in unlocking the immense potential of the blue economy by empowering young innovators, entrepreneurs, and technology-driven enterprises. We at NIMASA want to provide a platform for investors to identify young talents and invest in them”.
Mobereola, who commended the Minister of Marine and Blue Economy, Adegboyega Oyetola for codifying the Marine and Blue Economy Policy as a clear roadmap for the sector’s development, urged young Nigerians to embrace the programme which has the potential to transform raw talents into big investments in the maritime sector.
Applications are open to startups and innovators developing solutions across several strategic sectors, including marine waste management and the blue circular economy; aquaculture and sustainable fisheries; maritime technology and logistics innovation; ocean energy including wave, tidal, and offshore renewable energy; marine tourism and coastal recreation; marine biotechnology such as, ocean data and analytics; green shipping, including vessel decarbonization; smart port solutions; autonomous marine vehicles; biofouling prevention technologies; and coastal resilience through nature-based coastal defencesolutions.
The first phase of the programme is expected to attract a minimum of 150 high-quality applications from within and outside the country provided they are Nigerian citizens.
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