The Speaker of the House of Representatives, Tajudeen Abbas, on Monday declared that Nigeria’s ambition to evolve into a trillion-dollar economy hinges significantly on the growth and empowerment of small and medium-sized enterprises.
Abbas made the remark at the Enterprise Nexus Summit held at the National Assembly Complex, Abuja.
Speaking on the theme, “Strengthening local enterprise through policy support and access,” the Speaker, represented by the Deputy Speaker, Benjamin Kalu, described the summit as “a working platform where policy, ambition and opportunity meet in one room to produce outcomes measurable in livelihoods.”
He noted that the administration’s economic agenda places SMEs at the centre of national development.
He said, “The Renewed Hope Agenda aims to propel Nigeria into a trillion-dollar economy in the next five years through the facilitation of small and medium-scale enterprises.
“Global economic reports already show that small and medium-sized enterprises account for over 90 per cent of businesses worldwide, contributing nearly 70 per cent of employment in many developing economies.”
Citing domestic data, Abbas added, “The PriceWaterhouseCoopers 2024 survey in Nigeria shows that SMSEs account for over 84 per cent of businesses and contribute about 48 per cent to the national Gross Domestic Product (GDP), and make up 96.8 per cent of the total number of registered businesses in Nigeria.”
He expressed concern over the high mortality rate of small businesses across the country.
“Sadly, half of these businesses fail within their first year of operation largely because of poor access to formal credit, poor infrastructure, poor access to technology, and poor management skills,” he said.
Abbas stressed the need for strong policy support tailored to the unique needs of the SME sector.
“As we have noted, to address these identifiable challenges, policy support is important. Governments must enact and implement reforms that incentivise financial institutions to lend to SMEs.
“However, policy support extends beyond access to credit. It encompasses regulatory environments that nurture rather than stifle growth.
“If our regulatory environment is burdened with complex licensing, high compliance costs, and opaque tax systems, we would only be stopping the growth of SMEs,” he said.
He outlined ongoing legislative initiatives aimed at strengthening the sector.
These include the Innovation and Entrepreneurship Support Bill, 2025, which seeks to create a national framework for innovation hubs, tax incentives for tech startups, and private sector-driven mentorship.
He also referenced the Senate’s amendment to the Nigerian Export-Import Bank Act (NEXIM) 1991, which he said aims to unlock $1bn in trade opportunities for small-scale exporters involved in agriculture and manufacturing.
Other reforms highlighted by Abbas include the Factoring and Invoice Discounting Bill, intended to convert SME receivables into immediate working capital, and the Nigeria Tax Act 2025, which provides zero per cent Companies Income Tax for small businesses with annual turnover below N100m..
Beyond economic legislation, Abbas emphasised the social impact of enterprise development, particularly among youth. “Economic empowerment is a powerful tool for drug-use prevention. When young people are engaged in meaningful work, the possibility and incentive to experiment with substances reduces dramatically,” he said.
Also speaking, the Chairman of the National Drug Law Enforcement Agency, Brig Gen Buba Marwa (retd.), represented by the Director, Prevention and Sensitisation, Dankolo Mohammed, underscored the link between youth empowerment and drug abuse prevention.
He noted that while young Nigerians possess immense creativity and potential, many are constrained by structural barriers that limit their access to sustainable livelihoods.
Referring to national statistics, Marwa warned that drug-use trends remain alarming. He cited the 2018 UNODC National Drug Use Survey, which reported that about 14.3m Nigerians aged 15 to 64 had used psychoactive substances within the preceding year.
He added that the prevalence rate—almost three times the global average—is most common among those aged 18 to 35, who constitute the country’s most economically active and innovative demographic.
Small and medium-sized enterprises play a central role in Nigeria’s economic landscape and remain one of the most critical drivers of growth, employment, and innovation.
They account for the overwhelming majority of registered businesses in Nigeria and operate across diverse sectors including agriculture, manufacturing, services, creative industries, ICT, and retail.
Their contribution to GDP has consistently ranged between 45 per cent and 50 per cent, underscoring their importance in national productivity.
The sector is also the country’s largest employer of labour. With a national job market characterised by high youth unemployment, SMEs absorb millions of workers who would otherwise face limited opportunities in the formal sector. This makes the SME ecosystem a vital component of social stability and poverty reduction.
Despite this potential, the operating environment remains challenging. Many SMEs are constrained by weak infrastructure, erratic power supply, limited access to finance, complex registration processes, and inadequate technical and managerial capacity.
The failure rate among small businesses is therefore high, leading to significant economic losses and unrealised growth.
