Nigeria’s Small and Growing Businesses (SGBs) are on a projectile to better credit and cross-border expansion terms of usage, if a directive by Nigeria’s Minister of Trade and Investment, Olusegun Aganga, bears fruit.
According to Hon Aganga, the initial aim of the policy decision is to improve and enable accessibility to financing for small business entities.
The briefing took place at Pan African University in Lagos, with an initial objective of making company registration easier than the current, often perfunctory, formalities.
Small business Nigeria at a glance
Nigeria is one of the countries in Africa that have come to revere the great role of their SME sectors as critical to the stimulation of their Gross Domestic Product (GDP) potential.
The country, taking the word of the Minister of Trade and Investment in the Lagos summit, connects “Vision 2020” with the increment of the existing startup numbers.
At present, the Federal state, known for its oil reserves in the southern Niger-Delta, vaunts 17.2 million developing small and medium enterprises, employing around 32.4 million Nigerians.
The country, though enjoying the highest population in Sub-Saharan Africa, is still in the developing world global economic stratum, according to a World Bank (WB) report, and thereby relies highly on its enterprising resident numbers to pull up a show of progress. It is no wonder then that Nigeria has been contemplating on providing a level playing ground for such enterprises which do not demand much capital for they rely on existing technology from abroad that they tap.
To reinforce this technological premise of Nigerians tapping world business provisions, at the development stage, is the fact that statistically, the average SGB in the country usually has a very high growth quotient. Thus, if government steps in and helps solidify this potential, there is a likelihood that many entities may reach an enviable middle-income status in no time.
The Nigeria business story is dependent on sheer market numbers owing to the high population and for this reason the government can concentrate on policy and funding matters to increase their role of fueling the socioeconomic development of their communities.
If the Trade Minister’s announcement is anything to go by, there is even a possibility that SGBs may be the next generation of providers of forex for the country by accessing international markets like the US and the UK, with the latter incidentally falling under the same time zone as the financial capital of Nigeria, Lagos.