MSMEs Step Into the Spotlight as Nigeria FG Rolls Out Bold 2025 Support

The Federal Government has restated its determination to reposition Nigeria’s micro, small, and medium enterprises as the foundation of economic transformation. Vice President Kashim Shettima gave the assurance at the sixth Annual Lecture of the Development Bank of Nigeria in Abuja. Represented by Dr Tope Fasua, Special Adviser to the President on Economic Affairs, the Vice President emphasised that MSMEs remain central to the administration’s Renewed Hope Agenda.

“MSMEs are not peripheral actors. They are the lifeblood of our economy, accounting for over 80 percent of employment and making a significant contribution to GDP. As the government provides policy clarity and enabling infrastructure, institutions like DBN are key partners in translating vision into action,” he said. Nigeria’s MSME sector is vast. According to official figures, micro enterprises account for more than 96 percent of businesses in the country, while SMEs make up about 3 percent. Together, they employ over 80 percent of the workforce and contribute nearly half of national GDP.

Recent reforms are designed to reduce barriers that have long held back small businesses. The 2025 Tax Reform Acts, signed into law by President Bola Ahmed Tinubu, consolidate multiple tax laws into a single framework that makes compliance easier. Under the new code, businesses with annual turnover below ₦50 million will no longer pay company income tax. Essentials such as food, education, agriculture, and shared transport are exempted from value-added tax, directly lowering costs for millions of small traders and service providers. The Acts also introduced digital invoicing, a simplified classification of taxpayers into small, medium, and large categories, and a new Tax Ombuds Office to resolve disputes quickly.

The government believes that reforms already underway, such as the removal of fuel subsidy, unification of exchange rates, and renewed investment in infrastructure and human capital, will unlock opportunities for small businesses and attract new investment.

In his welcome address, DBN Managing Director and Chief Executive Officer, Dr Tony Okpanachi, described the bank as more than a financier, saying it serves as “a convener of ideas, a builder of capacity, and a partner in national transformation.” He added that Nigerian entrepreneurs are resilient and creative, but must be supported with finance, training, and enabling policies to thrive.

The Director General of the Small and Medium Enterprises Development Agency of Nigeria, Charles Odii, announced new measures to strengthen the global competitiveness of Nigerian SMEs. He listed reforms to ease export processes, provision of shared infrastructure such as garment hubs, support packages for business expansion, and innovative logistics partnerships. According to him, Nigeria’s recognition at the International Africa Trade Fair, where it won the “Best Pavilion” award, shows the potential of Nigerian businesses to compete globally if the right support is sustained.

The keynote speaker, Kenyan entrepreneur Flora Mutahi, challenged African businesses to embrace scaling as a deliberate strategy to tackle youth unemployment across the continent. She pointed out that 10 to 12 million young people enter the job market annually, but only three to four million formal jobs are created. She stressed that entrepreneurial success requires resilience, determination, and a mindset driven by a hunger to succeed despite challenges.

Stakeholders at the lecture, including policymakers, entrepreneurs, and development financiers, agreed that the destiny of Nigeria’s economy is tied to the success of its small businesses. With renewed political will, simplified taxation, and institutional support, MSMEs are being positioned not just as participants in the economy but as its true drivers of growth and innovation.