Muda Yusuf, chief executive officer, of the Centre for the Promotion of Private Enterprise
Financial experts have emphasised the urgent need to implement strategic policies to foster the growth and resilience of small and medium enterprises (SMEs) in Nigeria.
Speaking at the Vanguard Economic Discourse on Thursday, Femi Egbesola, president of the Association of Small Business Owners of Nigeria (ASBON), expressed concerns over the federal government’s approach to engaging private sector stakeholders, particularly small and medium enterprises (SMEs).
He emphasised that 85.5 percent of Nigeria’s SME sector comprises nano enterprises, often overlooked in policymaking.
“Policies fail because they are not co-created with those directly affected. Government must focus on this critical sector to drive real growth,” he said.
Egbesola criticised the limited impact of intervention programs, questioning their effectiveness. Calling for a collaborative approach, he said, “We don’t need pity; we need partnership. Policies should not be imposed but developed jointly.”
He urged the government to involve stakeholders in policy design, implementation, and evaluation, warning that without inclusive policy making, the nation will keep going in circles.
Egbesola also emphasised the need for support systems and institutions to strengthen SMEs, noting that resilience alone is unsustainable without strategic backing.
Muda Yusuf, CEO of the Center for Promotion of Private Enterprises (CPPE), highlighted the need for reform in Nigeria’s fiscal policies to better support small and medium enterprises (SMEs).
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“We have a trade policy process, imports and exports, that seems to emphasise more revenue generation. The conversation is always about the target of revenue, and this kind of mindset has a way of putting unnecessary pressure on businesses. It is important to use tariff instruments to support investment,” he said.
He noted that Nigeria’s tariff regime is too high, even in sectors where there is limited capacity for raw materials. Yusuf called for engagement with the administration to shift focus away from revenue generation toward investment.
“If we make it easier for investors and manufacturers to go through the international trade process, we’ll generate more profit and pay better taxes through company tax. But when we make it difficult to bring in raw materials and machinery, we make life hard for businesses,” he stated.
Yusuf also called for stronger advocacy from the private sector, noting that fragmentation reduces the effectiveness of such efforts, emphasising the need for an ideological consensus in economic management.
“We cannot afford to leave the economy purely to market principles. If we continue down that path, we will create more hardship. The market cannot deliver everything. Where there are market failures, the government needs to intervene to create a better environment for businesses and citizens,” he said.
He stressed the importance of government intervention in critical sectors such as energy, health, education, agriculture, and transportation. “Energy provision is critical for economic development and poverty reduction. If we leave it entirely to the private sector, they will chase profits. We need a framework for government intervention,” Yusuf explained.
Bukunmi Kuku, managing director of the Federal Airports Authority of Nigeria, underscored the need for Nigeria to prioritize innovation, job creation, and reinvesting profits into businesses and organizations.
“Nigeria needs to focus on innovating. We should be focused on creating jobs and keeping our profits to reinvest back into our organizations and our businesses. Real growth needs good governance,” Kuku stated.
She emphasised the importance of effective policy implementation, referencing the NESG’s findings. “I know the NESG has reported that 25% of the policies are implemented effectively, but the rest of the world operates at 40-60%. We are asking and pleading every single day for better governance,” she said.
Kuku highlighted examples from countries like China and South Korea, where clusters of young people and SMEs form interdependent networks that drive consistent development.
“Policies are fantastic, but I’m more interested in implementation. Our implementation teams should exceed our policy-creating teams. That’s what we should be focusing on as a people, especially as young people who want to make changes,” she concluded.
