Outlook for SMEs in Nigeria

SMEs are the engine of growth for socio-economic transformation particularly in developing countries like Nigeria. According to the Central Bank of Nigeria (CBN), an SME is a business with an annual debit turnover between ₦5M to ₦500M and a staff strength of less than 300. SMEs contribute approximately 1% of GDP in Nigeria

The 2017 budget provides opportunities for SMEs in terms of capital, recurrent & special intervention spends. Government is focused on policies that stimulate economic growth and has come up with the following initiatives and policies;

• Establishment of the Presidential Enabling Business Council.
• Creation of National Collateral Registry of movable assets / personal property used as collateral for loans
• Intervention funds to improve access to capital by SMEs
  • N500 billion for recapitalization
  • US$ 1.3 billion for Small and Medium-Sized Enterprise
• Focus on improving Infrastructure and local food production
• Improved availability of forex to importers with attendant relative price stability
• Use of special economic zones and industrial parks as vehicles to fast track domestic economic activities i.e. Lekki Free Trade Zone, Calabar Export Processing Zone etc.
• Social housing fund, stimulating the growth of SME and provision of social safety nets for the poor