SMEs Will Continue Pivotal Role in Growth of Nigeria’s Economy, Says Ashiru

Bennett Oghifo

The Chairman of Odua Investment Company, Otunba Bimbo Ashiru, has said that small and medium enterprises (SMEs) are indispensable to the growth of the nation’s economy as they provide innovation to sectors, stimulate job creation, and infuse energy into local markets, regardless of the stiff competition they face from larger companies.

Ashiru, the Chairman of the Association of Small Business Owners of Nigeria (ASBON), stated this at the Nigeria National SME Business Awards (NNSBA) 2024 programme, which was held in Lagos, recently.

He pointed out that maintaining economic development and building a more robust and diversified business environment depended heavily on supporting SMEs through laws that promote entrepreneurship, financial access, and innovation.
Ashiru said he was optimistic that SMEs would continue to propel the country’s growth despite obstacles they face as they try to hold onto market share in the face of fiercer competition.

According to him, his optimism is based on the outlook for SMEs, which demonstrate strong performance despite ongoing market uncertainties and cost pressures resulting from a volatile operating environment.
He said Ogun State offers the proper assistance and a favourable business climate, allowing the businesses to prosper and make even greater contributions to Nigeria’s economic development.

To foster successful entrepreneurship, the state government has empowered thousands of SMEs and assisted young people to start and expand their enterprises, he said.
According to him, one of the achievements was the development of a strong fashion sector to assist business owners engaged in the regional Adire textile industry.

The National President of the Association of Small Business Owners of Nigeria (ASBON), Dr. Femi Egbesola, stated that small and medium-sized enterprises were still vulnerable to the whims of the economy, which was a recurring source of worry.

He said that the complexities of multiple regulations and the limited availability of local finance were impeding SMEs’ efforts to become self-sufficient in Nigeria.

According to Egbesola, Nigeria’s startup scene has indeed been growing rapidly in recent years, with a focus on achieving self-reliance and addressing local challenges.

He noted, however, that while there are many success stories and promising initiatives, there are also significant challenges such as access to funding, infrastructure limitations, and regulatory hurdles that startups in Nigeria often face.

He said despite these obstacles, a significant number of young people have entered the field, bringing with them their creative ideas and cutting-edge technology that not only solve present problems but also open up new career prospects on a bigger scale.

He said this injection of new ideas and inventiveness serves as a catalyst for constructive change and industry advancement.

Egbesola explained that the award was created to honour those who help and encourage entrepreneurs and SMEs.

He said, “We found that over time, a lot of organisations have been supporting us, and designing this programme is the best thing we can do to empower them to do more.

“To  always say thank you every year to those who are supporting us. The number one awardee  is a governor of Lagos State, Mr Babajide Sanwo-Olu who is being honoured with the award of SMEs Friendly Governor of the year  because of his groundbreaking initiatives which have resulted in  the notable surge of entrepreneurs within the MSMEs  sector.”

He stated that a lot of work has been done to provide MSMEs with comprehensive capacity-building support  to advance them to the next stage of growth.

According to him, the actions demonstrated the governor’s dedication to creating an atmosphere that is favorable for business owners.

Ogun State Commissioner for Commerce, Industry and Trade and Investment, Mr. Adebola Sofela, said the present administration in the state has been deliberate in its efforts to create an enabling environment for businesses to thrive and job opportunities for residents across its 20 local government areas.

Represented by the Director, Industrial Promotion, Ministry of Industry, Trade and Investment, Engr. Kehinde Akintomide Sofela  said the Ogun State government has implemented  strategic interventions towards the development of the MSMEs sub-sector to  lay the foundation for a vibrant and resilient economy.

Sofela said the Ogun State Small and Medium Enterprises (SMEs) Financial Empowerment Scheme made up of N2bn MSME Grants and Loans as well as other Business Support programmes were deliberate efforts to enhance the competitiveness of businesses in the State.

The commissioner, who reiterated the government’s commitment to creating an enabling environment, added that the government was working on the Small and Medium Enterprises Industrial Land Acquisition Scheme (SILAS), a 1,000 hectare industrial hub which would enable small business owners to buy land and establish their businesses at rates lower than market rates.