MSMEs contributed about 48% of Nigeria’s total GDP ― Buhari

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3 years ago

Buhari

President Muhammadu Buhari has disclosed that Micro, Small and Medium Enterprises (MSMEs) contributed about 48 per cent of the total Gross Domestic Product (GDP) of Nigerian revenue annually.

Speaking on Tuesday while declaring open the 17th International Trade Fair organised by the Abuja Chamber of Commerce and Industry (ACCI), Buhari stated that trade plays a significant role in the economic growth of any nation.

“It helps to build wealth and improve foreign reserves. Trade is key to ending poverty across countries, raising standards of living and improving productivity. No economy can thrive without robust trade.

“The MSME segment is critical to the stimulation of economic development. Nigeria is estimated to be home to over 40 million MSMEs who, together, contribute about 48 per cent of our GDP. Many of us just see MSMEs as the mamas that fries Akara or the friendly Malam that owns the kiosk on our street.

“That is not the case; some of the fastest growing Fintech start-ups in Africa are, in fact, MSMEs. This trade fair provides an opportunity to change the narrative of what MSMEs are and demonstrates how innovative they can be.”

Represented by the Minister of Industry, Trade and Investment, Otunba Richard Adebayo, the President emphasised, “I see enterprises that employ large cross-sections of our youth population. I see enterprises with the capacity to export. I do not see small businesses here; I see future mighty business.”

He said the “Federal Government is keen to help MSMEs achieve their full potential and has developed strategic policy interventions, enshrined laws and established institutions to create a supportive business environment for entrepreneurs and MSMEs.

“In line with this, FMITI has developed a programme that will enhance access to credit for over 10 million MSMEs at single digit rate. Aside from the provision of finance, this project will address key ecosystem issues such as the development of MSME clusters to lower operating costs as well as capacity-building initiatives.

“The Ministry has also commenced the process of adopting a centralised automated platform for the registration of Trademarks, Patents and Designs. The overall objective is to fully digitise existing records and automate the registration process to enable ownership and commercialisation of innovation,” he stated.

Furthermore, Buhari explained that “the Federal Government has also approved fiscal incentives for MSMEs which includes exemption from Company Income Tax and Value Added Tax for enterprises with an annual turnover of less than 25 million Naira. The Pioneer Status Incentive also grants tax holidays for start-ups across multiple sectors.”

In his address, the President of ACCI, Dr Mujtaba Abubakar, said Abuja International Trade Fair is a standard platform for brand establishment that brings together various aspects of trade and industry, foreign ambassadors decision-makers, business delegations, entrepreneurs, and innovators.

“Since inception, the Trade Fair has served Nigeria as a trusted global trade destination and a potential market for over 50,000 consumers. It has also been a global platform, which provides an avenue where businessmen, entrepreneurs, service providers, and many others converge.

“It also provides an avenue for the distribution of trade, investment, market opportunities, and ideas that would greatly help sellers, buyers, investors, and countries to promote relationships in business.”

Abubakar noted that the Trade Fair is a unique event that also provides opportunities for manufacturers to communicate with product end users, handle customer complaints, and reward brands, thereby promoting businesses.

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