The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has called upon the Federal Government to allocate 25% of its contracts to Small and Medium Enterprises (SMEs). SMEDAN’s Director-General, Mr. Charles Odii, emphasized the importance of this move, citing the significant contribution of SMEs to the country’s GDP, accounting for about 50%, and their employment of approximately 60 million people.
Odii pointed out that the government is the largest spender and employer of labor in the country. To enable small businesses to benefit from government contract awards, he stressed the need for these businesses to be adequately equipped and prepared to compete for such contracts.
He noted that small businesses make up the majority in Nigeria, with 96% falling into this category, leaving only 4% as large enterprises. Odii’s call for SMEs to secure a substantial portion of government contracts is in line with promoting inclusivity and fostering economic growth at the grassroots level.
In a meeting with young legislators and small business owners, SMEDAN aimed to gain insights into the challenges these entities face, primarily revolving around costs and funding. Odii assured that SMEDAN would work to help small business owners reduce their production costs.
He also acknowledged that many banks are willing to provide funding but are often hindered by the lack of adequate business structures in SMEs. SMEDAN’s commitment is to assist at least one million entrepreneurs in structuring their businesses, making them eligible for funding opportunities.
This initiative reflects a strategic approach to empower and uplift SMEs, which play a vital role in the economic development of Nigeria, by offering them better access to government contracts and financial resources. The endeavor aligns with the goal of enhancing small business competitiveness and growth in the country.
