Finance expert Seyi Asagun has highlighted the vital role Nigeria’s Micro, Small, and Medium Enterprises (MSMEs) play in the economy, while warning that a $32.2 billion funding shortfall is holding back their growth and weakening national economic resilience.
MSMEs represent over 96% of Nigerian businesses, contribute nearly half of the country’s GDP, and provide 84% of employment nationwide. Despite their significance, the sector remains underfunded and faces numerous challenges.
“As the backbone of Nigeria’s economy, MSMEs have tremendous potential,” Asagun said. “Yet, insufficient financing, poor infrastructure, and widespread informality limit their ability to thrive.”
He emphasized the urgent need to improve access to credit, reform policies to simplify business registration, and strengthen infrastructure to support small businesses. Formalising MSMEs, Asagun added, is crucial for enabling them to access funding, government contracts, and export markets.
Digital technology is also a key growth driver, with platforms like Paystack and Flutterwave opening new opportunities for scaling. However, many MSMEs in rural areas still lack digital skills and infrastructure to fully benefit from these innovations.
Drawing on success stories like Farmcrowdy and LifeBank, Asagun believes that with adequate support, Nigerian MSMEs can become globally competitive and propel sustainable economic growth.
He called for stronger partnerships between government, private sector, and development organizations to create a supportive ecosystem. “Beyond capital, MSMEs need mentorship, infrastructure, digital inclusion, and aligned policies,” he said.
Asagun concluded by urging policymakers to prioritize MSMEs in national development strategies, underlining that unlocking their full potential is key to building a resilient and prosperous Nigerian economy.
