Economy
FG to Reposition MSMEs For Domestic Investments, FDIs
By Adedapo Adesanya
The federal government has reiterated its commitment to reposition the Micro, Small and Medium Enterprises (MSMEs) sector to further stimulate domestic investments and attract Foreign Direct Investments (FDIs).
This was made by the Permanent Secretary in the Ministry of Industry, Trade and Investment, Mrs Evelyn Ngige, at an event organised by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to commemorate the 2023 World MSME Day.
Mrs Ngige expressed the President Bola Tinubu-led administration’s commitment to formulating and implementing policies, programmes and projects that would impact MSMEs.
The Permanent Secretary, represented by Mr John Okpaluwa, said that prioritising the development of MSMEs was pertinent in building a better and stronger economy.
She further expressed the federal government’s determination to formulate policies that would create an enabling environment to stimulate domestic investments and attract FDIs in all sectors of the economy.
According to her, this will make Nigeria a preferred investment destination in Africa and the world at large.
“We are all aware that Micro-, Small and Medium-Sized Enterprises (MSMEs) are the mainstay of economies globally, playing a critical role in promoting innovation, creativity and decent work for all.
“It is with cognizance of this that the United Nations declared June 27 annually as MSME Day to raise awareness of their significance, especially in achieving the 2030 Agenda for Sustainable Development Goals (SDGs).
“The theme of this year’s event has further invigorated the importance and the critical role MSMEs play in the resuscitation of the world economy, especially the developing countries like ours.
“It is against this backdrop that prioritising MSMEs development becomes pertinent in building back a better and stronger economy in view of the shocks and crises that have disrupted the global working environment for entrepreneurs, especially MSMEs.
“This is why the Federal Government of Nigeria is committed and has shown sustained interest in repositioning the sector for efficiency, growth and development,” Mrs Ngige said.
While highlighting the role of MSMEs in the economy, she said that 39 million MSMEs in Nigeria contribute 46.31 per cent of the national GDP and 6.21 per cent of gross exports as well as employ a significant number of the populace.
According to her, the sector has continued to play a pivotal role in stimulating economic growth and providing employment to vulnerable groups such as youths, women and the poor.
“There is no doubt that the serious engagement of key private sector players in the development of policies and programmes, especially for MSMEs development, further reflects the resolve by the government to make Nigerian MSMEs become globally competitive.
“While assuring you that this effort is yielding a positive outcome, I am optimistic that the collaboration with relevant stakeholders will be sustained in the implementation of the revised National policy on MSMEs and beyond,’’ she said.
“It will as well enhance access to professional BDS by nano, Micro, Small and Medium Enterprises (nMSMEs) so as to maximise their potential.
“Also worthy of mention is the Nigeria Start-up Act, which seeks to provide an enabling environment for the establishment, development and operations of start-ups in Nigeria.
“The Act is also expected to foster the development and growth of technology-related talent and position Nigeria’s start-up ecosystem as the leading digital technology hub in Africa,’’ Mrs Ngige said.
She said that the Federal Government launched the Investment in Digital and Creative Enterprises (i-DICE) programme in Abuja as a major step toward upscaling entrepreneurship and innovation in the digital technology and creative industries.
“This includes film, fashion and music and will create an ecosystem that nurtures innovation, improves ease of access to affordable credit as well as a business-friendly system,’’ she said.
Adding his input, the Director-General of SMEDAN, Mr Olawale Fasanya, said that MSMEs contribute over 59 million jobs as of 2021, amounting to over 84 per cent of the total labour force in Nigeria and more than 48 per cent of nominal GDP.
He solicited better cohesion among key players to ensure the sustainable development of the sector, adding that more support would not only make the sub-sector more sustainable but also measurable.
He further said that Nigeria is presented with an unprecedented opportunity to emerge with a better enabling environment for MSMEs to operate with the new government in place.
According to him, the government is now more focused on embarking on tangible and measurable economic diversifications, improvement of health care, education, public transport, empowerment of all women, girl-child and the youths, and combating climate change and its impacts.
By Adedapo Adesanya
The United Kingdom via the British High Commission in Abuja has launched two flagship economic reform programmes – the Nigeria Economic Stability & Transformation (NEST) programme and the Nigeria Public Finance Facility (NPFF) -as part of efforts to support Nigeria’s economic reform and growth agenda.
Backed by a £12.4 million UK investment, NEST and NPFF sit at the centre of the UK-Nigeria mutual growth partnership and support Nigeria’s efforts to strengthen macroeconomic stability, improve fiscal resilience, and create a more competitive environment for investment and private-sector growth.
Speaking at the launch, Cynthia Rowe, Head of Development Cooperation at the British High Commission in Abuja, said, “These two programmes sit at the heart of our economic development cooperation with Nigeria. They reflect a shared commitment to strengthening the fundamentals that matter most for our stability, confidence, and long-term growth.”
The launch followed the inaugural meeting of the Joint UK-Nigeria Steering Committee, which endorsed the approach of both programmes and confirmed strong alignment between the UK and Nigeria on priority areas for delivery.
Representing the Government of Nigeria, Special Adviser to the President of Nigeria on Finance and the Economy, Mrs Sanyade Okoli, welcomed the collaboration, touting it as crucial to current, critical reforms.
“We welcome the United Kingdom’s support through these new programmes as a strong demonstration of our shared commitment to Nigeria’s economic stability and long-term prosperity. At a time when we are implementing critical reforms to strengthen fiscal resilience, improve macroeconomic stability, and unlock inclusive growth, this partnership will provide valuable technical support. Together, we are laying the foundation for a more resilient economy that delivers sustainable development and improved livelihoods for all Nigerians.”
On his part, Mr Jonny Baxter, British Deputy High Commissioner in Lagos, highlighted the significance of the programmes within the wider UK-Nigeria mutual growth partnership.
“NEST and NPFF are central to our shared approach to strengthening the foundations that underpin long-term economic prosperity. They sit firmly within the UK-Nigeria mutual growth partnership.”
By Aduragbemi Omiyale
A strategic partnership aimed at accelerating the growth, digital capacity, and sustainability of Nigeria’s 40 million Micro, Small and Medium Enterprises (MSMEs) has been signed by MTN Nigeria and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
The collaboration will feature joint initiatives focused on digital inclusion, financial access, capacity building, and providing verified information for MSMEs.
With millions of small businesses depending on accurate guidance and easy-to-access support, MTN and SMEDAN say their shared platform will address gaps in communication, misinformation, and access to opportunities.
At the formal signing of the Memorandum of Understanding (MoU) on Thursday, November 27, 2025, in Lagos, the stage was set for the immediate roll-out of tools, content, and resources that will support MSMEs nationwide.
The chief operating officer of MTN Nigeria, Mr Ayham Moussa, reiterated the company’s commitment to supporting Nigeria’s economic development, stating that MSMEs are the lifeline of Nigeria’s economy.
“SMEs are the backbone of the economy and the backbone of employment in Nigeria. We are delighted to power SMEDAN’s platform and provide tools that help MSMEs reach customers, obtain funding, and access wider markets. This collaboration serves both our business and social development objectives,” he stated.
Also, the Chief Enterprise Business Officer of MTN Nigeria, Ms Lynda Saint-Nwafor, described the MoU as a tool to “meet SMEs at the point of their needs,” noting that nano, micro, small, and medium businesses each require different resources to scale.
“Some SMEs need guidance, some need resources; others need opportunities or workforce support. This platform allows them to access whatever they need. We are committed to identifying opportunities across financial inclusion, digital inclusion, and capacity building that help SMEs to scale,” she noted.
Also commenting, the Director General of SMEDAN, Mr Charles Odii, emphasised the significance of the collaboration, noting that the agency cannot meet its mandate without leveraging technology and private-sector expertise.
“We have approximately 40 million MSMEs in Nigeria, and only about 400 SMEDAN staff. We cannot fulfil our mandate without technology, data, and strong partners.
“MTN already has the infrastructure and tools to support MSMEs from payments to identity, hosting, learning, and more. With this partnership, we are confident we can achieve in a short time what would have taken years,” he disclosed.
Mr Odii highlighted that the SMEDAN-MTN collaboration would support businesses across their growth needs, guided by their four-point GROW model – Guidance, Resources, Opportunities, and Workforce Development.
He added that SMEDAN has already created over 100,000 jobs within its two-year administration and expects the partnership to significantly boost job creation, business expansion, and nationwide enterprise modernisation.
By Adedapo Adesanya
The Nigerian Exchange (NGX) Limited is seeking review of the controversial Capital Gains Tax increase, fearing it will chase away foreign investors from the country’s capital market.
Nigeria’s new tax regime, which takes effect from January 1, 2026, represents one of the most significant changes to Nigeria’s tax system in recent years.
Under the new rules, the flat 10 per cent Capital Gains Tax rate has been replaced by progressive income tax rates ranging from zero to 30 per cent, depending on an investor’s overall income or profit level while large corporate investors will see the top rate reduced to 25 per cent as part of a wider corporate tax reform.
The chief executive of NGX, Mr Jude Chiemeka, said in a Bloomberg interview in Kigali, Rwanda that there should be a “removal of the capital gains tax completely, or perhaps deferring it for five years.”
According to him, Nigeria, having a higher Capital Gains Tax, will make investors redirect asset allocation to frontier markets and “countries that have less tax.”
“From a capital flow perspective, we should be concerned because all these international portfolio managers that invest across frontier markets will certainly go to where the cost of investing is not so burdensome,” the CEO said, as per Bloomberg. “That is really the angle one will look at it from.”
Meanwhile, the policy has been defended by the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, who noted that the new tax will make investing in the capital market more attractive by reducing risks, promoting fairness, and simplifying compliance.
He noted that the framework allows investors to deduct legitimate costs such as brokerage fees, regulatory charges, realised capital losses, margin interest, and foreign exchange losses directly tied to investments, thereby ensuring that they are not taxed when operating at a loss.
Mr Oyedele also said the reforms introduced a more inclusive approach to taxation by exempting several categories of investors and transactions.
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