The President of the Association of Small Business Owners of Nigeria (ASBON), Dr. Femi Egbesola, has raised serious concerns over the ineffectiveness of current government policies in supporting small and medium enterprises (SMEs), particularly nano businesses, which make up the vast majority of Nigeria’s informal sector.
Speaking during the Vanguard Economic Discourse, Egbesola criticised the federal government for not involving private sector stakeholders in the formulation and execution of economic policies. According to him, this top-down approach is a major reason many policies fail to make the desired impact on grassroots businesses.
“Policies fail because they are not co-created with the people who will be affected by them. We don’t need pity; we need partnership,” he said.
Nano Businesses Left Behind
Egbesola revealed that a staggering 85.5% of Nigeria’s SME sector is comprised of nano enterprises — the smallest units of business that often operate informally and are frequently neglected in policy formulation.
He stressed that despite their sheer numbers and economic significance, most government initiatives are designed for larger enterprises, leaving nano and micro businesses out of crucial support systems.
“The government must focus on this critical sector to drive real growth,” Egbesola emphasized.
Intervention Programs Not Effective
The ASBON President pointed out that many intervention programs have failed to produce significant long-term results. He challenged the effectiveness of these programs by asking a striking question:
“How many small businesses have grown into the next Dangote in the last 10 years? Almost none,” he lamented.
According to him, resilience alone is not enough for Nigerian SMEs to thrive—they need strategic policy support, sustainable systems, and inclusive institutions.
Call for Inclusive Policymaking
Egbesola advocated for a collaborative policy-making process where stakeholders from every business tier are involved—not just during policy implementation, but right from the design stage.
“The government cannot fully understand the needs of every sector unless it sits with key stakeholders. Policies should not be imposed but jointly developed,” he asserted.
The Road Ahead
To build a truly supportive ecosystem for small businesses, Egbesola called for:
- Structured stakeholder collaboration
- Tailored support systems for nano businesses
- Inclusive institutional frameworks
- Continuous evaluation of policies and outcomes
He warned that without a shift towards inclusive and bottom-up policymaking, Nigeria risks repeating the same cycle of economic stagnation and missed opportunities for business growth.
“Without inclusive policymaking, we’ll keep going in circles,” Egbesola concluded.
As Nigeria continues to seek pathways to economic revitalization, his message is clear: inclusive engagement with real sector players—especially nano and small business owners—is not optional, but essential.
