Federal Government Releases Report on Nigeria’s Informal Economy

In a significant move underscoring its commitment to strengthening Nigeria’s informal economy, the Federal Government has released the Nigeria Informal Sector Report 2024. The initiative highlights the sector’s critical role in driving employment, income generation and economic resilience, especially in recent times.

Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, who presented the report in Abuja yesterday, highlighted the administration’s commitment to the development of SMEs under President Bola Ahmed Tinubu. She stressed the importance of leveraging supportive government policies to strengthen SMEs and increase their contribution to the country’s GDP.

The report, prepared by Moniepoint Micro Finance Ltd in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), was officially launched in Abuja.

SMEDAN CEO Charles Odii, in his presentation, outlined the agency’s ambitious “Grow Nigerian” program to accelerate the growth and prosperity of small businesses. The program focuses on expanding local production capacity, improving access to both domestic and international markets, and creating an enabling environment for over 40 million small businesses that collectively provide over 60 million jobs.

Odii emphasised SMEDAN’s commitment to protecting enterprises from inflationary pressures while enabling them to raise their production standards and competitiveness.

He added that the Grow Nigerian strategic plan aims to address Nigeria’s currency and unemployment challenges through diversified import substitution, which will foster economic engagement and foreign exchange earnings.

The initiative also includes joint efforts with other government agencies to streamline regulations and optimize them for growth and productivity. This comprehensive approach aims to remove barriers to formalization and growth, offering SMEs affordable financing, access to lucrative markets, mentoring and capacity building.

He added that in line with government mandates on food security, SMEDAN actively supports smallholder farmers by promoting global best agricultural practices, from seed selection to harvesting techniques.

Odii presented SMEDAN’s mission for SMEs which is encapsulated in the acronym “GROW”: guidance, resources, opportunities and workforce support.

According to him, the agency is focusing on seven priority sectors including agriculture (EAT Nigeria), manufacturing (PRODUCE Nigeria), tourism (VISIT Nigeria), fashion (WEAR Nigeria), creative industries (WATCH AND LISTEN Nigeria), education (TEACH Nigeria) and services (PATRONISE Nigeria).

He also highlighted SMEDAN’s innovative “One Local Government, One Product” initiative aimed at utilizing local products for consumption and export across all 774 Nigerian local governments.

He revealed that the initiative provides financial support to cooperatives in the form of a loan of 70 per cent and a grant of 30 per cent.

Also, the Managing Director of Moniepoint MFB, Babatunde Olofin, highlighted the role of the report in enhancing policy makers’ knowledge and stakeholder perspectives on Nigeria’s informal economy.

He emphasised the crucial role of this sector in providing significant employment opportunities and income, especially to those outside the formal labour market.

Olofin emphasised that the Nigeria Informal Economy Report is a must-read for individuals and organisations interested in understanding the dynamics of the informal sector with the aim of creating a more inclusive and sustainable economic landscape.

He reaffirmed Moniepoint’s commitment to financial inclusion and facilitating access to the financial system, which is key to improving the financial well-being of businesses and consumers.

The panel discussion concluded with a resounding call for further collaboration and concerted efforts to support and transform Nigeria’s vibrant informal economy towards sustainable growth and development.