Nigeria’s vision to transform into a trillion-dollar economy rests heavily on fostering the development of small and medium-sized enterprises (SMEs), according to Speaker of the House of Representatives, Tajudeen Abbas. Addressing the Enterprise Nexus Summit at the National Assembly Complex in Abuja, Abbas—represented by Deputy Speaker Benjamin Kalu—emphasized that SMEs occupy a central role in the nation’s economic strategy.
Abbas noted that the government’s Renewed Hope Agenda sets a five-year target to elevate Nigeria’s economy to a trillion dollars, with SME growth as a primary engine. SMEs, he pointed out, make up more than 90% of all businesses worldwide and provide substantial employment, accounting for nearly 70% of jobs in developing economies. In Nigeria specifically, a 2024 PriceWaterhouseCoopers survey found that SMEs represent over 84% of businesses, contribute 48% to the GDP, and comprise 96.8% of registered enterprises.
Despite their importance, Abbas expressed concern over the high failure rate among new small businesses, attributing this to limited access to finance, inadequate infrastructure, insufficient technological resources, and weak management skills. He advocated for tailored policy support that addresses these barriers, including reforms to encourage lending, simplify regulations, and reduce compliance costs. Abbas warned that complex licensing and burdensome tax systems could stifle SME growth.
Legislative efforts are underway to bolster the SME sector, including the Innovation and Entrepreneurship Support Bill, which aims to establish innovation hubs and provide tax incentives for tech startups. Amendments to the Nigerian Export-Import Bank Act are expected to open up $1 billion in trade opportunities for small exporters, while the Factoring and Invoice Discounting Bill will enable businesses to convert receivables into working capital. The Nigeria Tax Act 2025 will exempt small businesses with turnover under N100 million from corporate income tax.
Beyond economic policy, Abbas highlighted the broader social impact of supporting enterprises, particularly for youth employment and drug abuse prevention. Engaging young people in meaningful work, he argued, reduces the likelihood of substance abuse. Brig Gen Buba Marwa, Chair of the National Drug Law Enforcement Agency, reinforced this point, noting that youth empowerment is vital for curbing drug abuse—a pressing issue, as nearly 14.3 million Nigerians aged 15-64 reported using psychoactive substances in 2018, according to the UNODC.
