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Nano, Micro, Small, and Medium-sized Businesses in Lagos State, Way Forward

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Timi Olubiyi Businesses in Lagos

By Timi Olubiyi, PhD

Small and Medium-sized Enterprises (SMEs) are generally regarded as the engine of economic growth in any developing economies.

Similarly, a large concentration of SMEs, including micro and nano businesses, are easily noticeable in Lagos State, the economic hub of Nigeria.

The state enjoys a high presence of SMEs, micro and nano businesses, more than any state in Nigeria. Why is that? The simple metric to this is that Lagos State has a population size of about 15 million, according to the United Nations (UN) projections and it appears like a country within a country considering the strength of economic activity and populace.

In fact, without a doubt, Lagos State has a population estimate that is higher than some West African countries namely Guinea (13,132,795), Benin (12,123,200), Togo (8,278,724), and Sierra Leone (7,976,983).

Even the population of the state is higher than that of some developed countries such as Finland (5,540,720), Belgium (11,589,623), Sweden (10,099,265), Denmark (5,792,202), and Ireland (4,937,786).

Supportably, the population is even higher than the combined population of Liberia (5,057,681), Mauritania (4,649,658), Gambia (2,416,668), Guinea-Bissau (1,968,001) as of February 27, 2021.

However, the painful reality is that over 60% of the residents of Lagos State are poor and live in various high density and informal settlements scattered across the state.

These residents lack proper sanitation, power, and other basic services, and most of them heck a living from small businesses which includes nano and micro-businesses most importantly.

A visible reference usually includes the operators of kiosks, commercial tricycles, motorcycles and many other informal business operations in the state.

The estimated figure of micro-businesses in Lagos State is 3,224,324 and to add to this, over 11,663 SMEs operate in the state, according to a recent statement from the Lagos Ministry for Commerce, Industry, and Cooperatives.

In my opinion, this data is underreported and does not reflect the large informal economy that exists in the state particularly the nano businesses.

From reliable data, the informal economy employs about 5.5 million people in Lagos State if not more. So, a reliable database is necessary for adequate planning in the State.

The small business economic activities in Lagos State can contribute largely to the growth of the non-oil sector, employment generation, and the creation of sustainable entrepreneurship. These can largely be driven by businesses in the formal and informal sector in the state.

Arguably, small businesses represent over 90 per cent of private businesses in the state and contribute to more than 50 per cent of employment in the state. Yet, the state government has not duly recognised the significance of this sector in the economic development of the state.

For instance, the popular computer village in Ikeja, Ladipo spare part market in Oshodi and Balogun market in Lagos Island all consist of clusters of mostly micro-businesses with huge economic engagements but the government of Lagos state is yet to facilitate their formality and capacity building with the required policy and incentive considerations.

The novel Coronavirus (COVID-19) and the harsh economic climate currently with us have made many of these businesses struggle and some have shut down due to these challenges which include perennial issues; from infrastructure deficits (power, road, technology, and so on) to inconsistent government policies, security problems, multiple taxations, regulatory burdens, stiff competition from large companies, the entrepreneurial attitude of operators, huge financial and funding problems, lack of meaningful structure, longevity and succession plan among others.

SME operators and entrepreneurs strive with different strategies and tactics to absolve many of these challenges and shocks to make any meaningful balance with little or no external support.

However, the government needs to realise and recognise that small businesses are crucial to job creation, economic diversification, innovation, poverty reduction, wealth creation, and income redistribution in their policy-making activities. If this sector is well harnessed in Lagos State it can be a huge catalyst in transforming the State economically.

The vivid truth is that a well-functioning SME sector would add more value to the economic fortunes of the state, sustain livelihoods, reduce poverty by creating more job opportunities in the economy than any other sector.

Therefore, proper monitoring and evaluation of this sector are crucial for the economic development of Lagos State. When businesses survive, there will be a reduction in market failures and the more businesses are without survival threats the government can equally benefit from their growth and development. It can increase tax receipts and accelerate the growth of industrialisation in the state.

Therefore, the Lagos State government should focus more on policies and programs to widen the SMEs’ involvement in the formal sector particularly the micro and nano businesses.

The state government through the appropriate Ministry can implement policies that will enhance ease of doing business in the state to attract operators from the huge unregulated informal sector to the formal sector.

The informal sector in Nigeria refers to economic activities in all sectors of the economy that are operated outside the purview of government regulation. Therefore, policies to attract business formality should be considered and formulated, and also the capacity and sustainability of these SMEs, micro and nano businesses should be enhanced because if all these are set in place it will encourage the development of the formal sector of the SME sector in the state.

That said, key stakeholders such as the Small and Medium Enterprise Development Agency (SMEDAN), Nigerian Association of Small & Medium Enterprises. (NASME), Association of Small Business Owners of Nigeria (ASBON), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Association of Micro Entrepreneurs of Nigeria (AMEN), the Lagos Chamber of Commerce and Industry (LCCI), Manufacturer Association of Nigeria (MAN), the financial technology (FINTECH) associations, and groups in the Organised Private Sector (OPS) advocate for ways government can create innovative measures to improve business formality, enable secured environment, improve on rule of law, encourage public-private initiatives, invest in infrastructure, and consider policies as the needed.

Corruption has also remained a very serious problem that needs to be genuinely addressed because it can threaten any development policies and programs of the state.

The support of these teeming small, micro, and nano businesses is also imperative and strategies to sustain their business operations should be key in the decision-making process of the government of Lagos State.

The National Bureau of Statistics (NBS) suggested that many of the Nigerian youth are unemployed, majority of them can be meaningfully absorbed into this sector through self-employment, startups, and financial technology (FINTECH) if the SME sector is made viable with an adequate enabling environment.

In conclusion, the Lagos State government should get more involved in the growth, development, and sustainability of SMEs within the state.

More so, the state government needs to ensure the development and patronage of locally produced goods and content while putting in place adequate infrastructures.

Besides corroboration with experts and consultants in the provision of external advice to government and these teeming small businesses on a range of topics such as strategy, having a business and organisational structure for business continuity, financial literacy, technology, and role of innovation to increase their output is equally significant.

Concisely, going forward policies and programs of the government in the State should be rooted in deep rule of law, accountability, creation of a database on small business and uphold strict fiscal discipline. Good luck!

How may you obtain advice or further information on the article?

Dr Timi Olubiyi is an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University Nigeria. He is also a prolific investment coach, seasoned scholar, Chartered Member of the Chartered Institute for Securities and Investment (CISI), and Securities and Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: drtimiolubiyi@gmail.com, for any questions, reactions, and comments

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President’s Katsina State Visit Exposes Disconnect from People’s Needs

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tinubu in katsina

By Abba Dukawa

The recent visit by the President Bola Tinubu to Katsina State has sparked concerns about the disconnect between the government’s priorities and the people’s needs. The visit exposed the hypocritical approach to the need of their people, states and the northern Nigeria as whole. The quality of leadership in the region has been questioned, with allegations of self serving  interest, ineptitude, and a lack of vision.

This is in spite of the fact that northern Nigeria as a whole faces numerous challenges that threaten its stability and development. Some of the key issues include insecurity, poverty, education, economic hardship, inequality and social and cultural challenges. The visit has been seen as an opportunity missed to engage with the state’s residents, listen to their concerns, and chart a way forward for development.

While the visit was marked by displays of pageantry and entertainment, the state’s pressing issues such as insecurity, poverty, and economic hardship, seemed to take a backseat.  Critics argue that the government’s focus on superficial events rather than addressing the root causes of the state’s challenges is a clear indication of a disconnect from the people’s needs.

The introduction of Rarara’s wife to the President by the Katsina State Governor, contravening cultural and religious norms, raise questions about leaders’ priorities and values.

Current leaders in the north seem more focused on personal interests and political survival than advocating for the northern Nigeria improvement.

Regardless of the challenges in the region the Governors  keep  praise for the President’s economic reforms, notwithstanding the region’s struggles, is concerning. economic reforms should lift people out of poverty, create jobs, and stimulate growth. If not yielding tangible benefits, they need reevaluation.

The north needs leaders prioritizing regional development and working towards a brighter future. Leaders understanding our region’s problems and committed to tackling them head-on are crucial. It’s time for a shift in approach, prioritizing people’s needs over personal interests.

As we move forward, we must demand more from our leaders. We need leaders who will stand up for the north and work tirelessly to find solutions. Anything less is a disservice to the region and its people.

We need leaders who cultivate a culture of good governance, prioritizing accountability and transparency to address insecurity and promote development.

The north needs a visionary leaders who prioritize all citizens’ needs, regardless of tribe or religion, are crucial for unity and stability.

Leaders who accelerate economic development, create jobs, and provide essential services like education and healthcare can reduce poverty and insecurity.

We require leaders who will combat corruption and promote social justice, reducing inequality and fostering stability.

In northern Nigeria, effective security reforms are necessary, including modernizing security agencies, enhancing intelligence gathering, and addressing insecurity’s root causes to ensure public safety.

To bridge the gap between the government and the people, there is a need for leaders who understand the intricacies of the state’s problems and are committed to tackling them head-on. By prioritizing the people’s needs and working towards sustainable development, the government can build trust and foster a sense of ownership among its citizens

May God guide Nigeria towards true development and prosperity.

Dukawa, a concerned Nigerian, can be reached at abbahydukawa@gmail.com

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Changing University Climate: It’s No Longer “Publish or Perish,” It’s “Be Visible or Vanish”

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Publish or Perish Timi Olubiyi

By Timi Olubiyi, PhD

For decades, the expression “publish or perish” has been of interest to academics, researchers, and professionals worldwide. Success is measured by the total number of peer-reviewed articles published, conference proceedings available online, and book chapters produced and published.

Despite so much research stemming from academic institutions, not many of these publications enjoy wide visibility in particularly those published in non-indexed journals.

Academics are continuously encouraged to increase the impact of their research endeavours, but what really constitutes impact in today’s academic environment?  Is it the number of citations for your published research?  Is it the amount of research funds your name and profile can generate?  Is it the number of speeches and presentations you deliver about your research area?  Is it the number of boards/committees/working groups that you serve on? And so on.

Though in the academic world, publication signifies validation and survival in most universities for promotion and relevance; in fact, it remains a cornerstone of career advancement. From early-career lecturers to senior professors, scholarly publishing plays a pivotal role in demonstrating expertise, building reputation, and meeting institutional benchmarks for promotion.

However, in today’s hyper-connected, information-saturated environment, a compelling principle has emerged: “Visible or vanish.” In other words, it is not just what you publish; it is who sees it, talks about it, and shares it that matters. Today, there is a stronger emphasis on quality, impact, relevance, and where your articles are published.

Globally, publications in high-impact journals measured and indexed in Scopus, Web of Science, Australian Business Deans Council (ABDC), Chartered Association of Business Schools (ABS), Science Citation Index Expanded (SCIE), Social Sciences Citation Index (SSCI), Directory of Open Access Journals (DOAJ), and more are given serious emphasis.

The primary reason for academic publication should be to advance knowledge, not merely for promotion or institutional expectations. In the author’s opinion, the true reasons for academic publication are to help scholars establish their intellectual identity, which represents a personal academic brand, provide a platform for international recognition, and create career milestones.

Though the gatekeeping role in academia has diminished, this has created a market for predatory journals for academics aiming for promotion. What are predatory journals? They are journals that are fraudulent or unethical academic journals that pretend to be legitimate scholarly publications but do not follow proper peer-review standards, editorial practices, or have recognized indexation.

All they need is money, money and money, no values or integrity. Predatory journals prioritize profit over quality and can seriously harm the academic career of a scholar with a global vision.

Though academic publications still remain respected, considering indexation is key even for institution-based journals (Journals run by university departments). Publication remains the foundation of academic promotion, but how and where academics publish matters more than ever.In an academic environment that is increasingly competitive, interdisciplinary, and global, researchers must not only produce excellent work but also strategically position it for maximum visibility and influence.

Both academics and researchers must consider more than just publication because we have only two key roles in publishing- to do our research and to communicate the research; the latter is the focus of this piece. Our research needs to be noticed, cited, and discussed due to its impact, or we risk being completely overlooked.

Platforms like Google Scholar, ResearchGate, LinkedIn, Facebook groups, Twitter (now X), and even TikTok have become unexpected grounds for attention. Researchers who communicate their work beyond academic circles through public lectures and engaging online posts amplify their impact dramatically.

A highly cited, visible paper can transform careers far faster than a series of obscure journal articles ever could. Therefore, for relevance and global standards, a quality publication with visibility is required.

Visibility today means publication with recognition, a visibility that can connect researchers to a broader global academic community. It can also enhance career and funding opportunities beyond the immediate environment of the researcher.

When publication is executed correctly, it has the potential to create change beyond academic circles, influence policies, and shape professional practices. It can also raise public awareness on critical issues like climate change and inequality.

With millions of articles published annually, even excellent research can be buried unless actively promoted to make it widely visible. Good visibility can also improve invitations for collaborations, keynote addresses, consulting engagements, and even career pivots beyond academia. Visibility, thoughtfully pursued, is no longer optional; it is extremely important. It may also help fulfil deeply personal motivations.

However, remember that scholarly publishing is not a one-way communication. It should encourage and invite critique, discussion, and debate; that is what visibility can provide. Research that enjoysvisibility has a higher chance of influencing policy, industry practices, and public understanding

It is safe to say it is key for researchers, scholars and academics to navigate this new landscape.Visibility is increasingly vital in academia as it directly influences career progression, research significance, and the capacity to engage with a broader audience. Enhanced visibility can connect to opportunities for international research partnerships, funding, and new audiences globally.

In the current competitive academic environment, merely publishing research is insufficient; scholars must proactively advocate for their work and establish a robust online presence to guarantee visibility and media attention. In an era of increasing pressure to publish quickly and frequently, remembering these true reasons can help academics stay focused on purpose over performance, ensuring that their contributions are not only counted but truly matter.

Therefore, publish wisely, publish well, and publish with purpose, along with incredible consistency. In the contemporary technological era, the way research information is handled, conveyed, processed, shared, and maintained has changed.Therefore, my colleagues, be a thought leader, there is a need to gravitate towards social media because it can improve visibility and also to promote research findings or knowledge thereof. So, welcome to the era of visible or vanish. Good luck!

How may you obtain advice or further information on the article? 

Dr Timi Olubiyi is an expert in entrepreneurship and business management, holding a PhD in Business Administration from Babcock University, Nigeria. He is a prolific investment coach, author, columnist,seasoned scholar, Chartered Member of the Chartered Institute for Securities and Investment (CISI), and a registered capital market operator with the Securities and Exchange Commission (SEC). He can be reached on Twitter at @drtimiolubiyi and via email at drtimiolubiyi@gmail.com for any questions, reactions, and comments.

The opinions expressed in this article are those of the author, Dr. Timi Olubiyi, and do not necessarily reflect the views of others.

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How Investments in Reskilling and Trust Help Businesses Succeed in the Agentic AI Era

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Linda Saunders Salesforce AI Agents

By Linda Saunders

The ascent of agentic AI, systems that can perform tasks without human intervention, represents not just an incremental technological advancement but a fundamental reshaping of the business landscape. The possibilities for enhanced productivity and innovation are immense. Using AI agents, businesses around the world are unlocking a piece of the potential $6 trillion digital labor market opportunity.

Businesses that fail to adopt agentic AI, however, risk disruption by competitors or savvy upstarts. This demands a proactive and strategic response from leaders. In this new era of human-AI collaboration, leaders must center their efforts around two key pillars: large-scale employee reskilling and establishing a trustworthy AI ecosystem.

Reskilling for the agentic AI era

With just 15% of workers saying that they have the education and training necessary to use AI effectively, reskilling must be a priority for every business leader.

Employees must be given access to learning opportunities so they can adopt human-AI collaboration skills, including a foundational understanding of agentic AI and prompt engineering — a way to provide clear and effective instructions to AI systems.

Consider, for instance, the evolving role of developers. With AI agents capable of handling routine coding, developers can focus on bigger-picture tasks like system design and future planning.

According to Salesforce’s latest State of IT survey of software development leaders‌, more than nine in 10 developers are excited about AI’s impact on their careers, and an overwhelming 96% expect it to change the developer experience for the better. More than four in five believe AI agents will become as essential to app development as traditional software tools, the survey found.

In addition to technical abilities, cultivating human and business skills is vital for fostering a trusted environment where teams feel comfortable experimenting with AI. And, as every employee increasingly manages individual or even teams of agents, developing basic managerial skills across the workforce will become increasingly important.

Identifying the skills is just the first step. To succeed in the agentic AI era, businesses need to develop a comprehensive strategy that incorporates these skills into their workforce plan. This includes setting clear, measurable goals and actively tracking progress.

Managers need to provide active guidance and support to employees throughout this transformation, ensuring the workforce remains relevant and engaged.

Adopting trusted AI across the ecosystem

As the capabilities of agents grow, so too does the responsibility to manage ‌associated risks. It’s imperative to ensure these systems are fair and prevent stereotypes or alienation. The very qualities that make AI transformative can also lead to biases and erode trust if not managed.

To fully harness the potential of agentic AI, businesses must prioritize trust and safety at every stage of development and deployment. This means implementing strong security measures and adhering to ethical AI practices to safeguard data and ensure responsible use.

Guardrails for AI agents can be established using natural language topics and instructions specifying when an agent should escalate or transfer a task to a human. Concerns around data privacy and potential biases must be proactively addressed through strong data protection protocols and transparent communication.

Equally important are tools that foster transparency and empower users to make informed decisions regarding task delegation to AI. Employees need a clear understanding of the capabilities and limitations of the AI agents they collaborate with, alongside having control over the tasks being automated.

A key feature of Agentforce is its capacity for autonomous operation within specifically defined guardrails. This means that while ‌AI agents can operate independently, making decisions and taking actions, they do so within boundaries established by human teams, ensuring alignment with business objectives and policies. The Einstein Trust Layer enables Agentforce to use any LLM safely by ensuring that no Salesforce data is viewed or retained by third-party model providers.

The power of reskilling and trust to drive innovation

The transition to an AI-powered future will bring challenges, particularly ensuring employees have access to the right infrastructure, high-quality data, and relevant skills.

However, by investing in reskilling and comprehensive training programs, organizations can empower teams to work effectively alongside AI agents, adapt to the evolving nature of work, and ultimately drive innovation in this age of digital labor.

Building a robust infrastructure that prioritizes trust and safety, and fosters transparency, will also be instrumental in mitigating disruptions and unlocking new opportunities for growth.

Ultimately, investing in both AI agents and human employees, and actively fostering their collaboration in a trusted way, will enable businesses to operate at scale and realize their full potential in the agentic AI era.

Linda Saunders is the Country Manager and Senior Director of Solution Engineering for Africa at Salesforce

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