Accelerating Productive MSMEs: The Much-Needed Catalyst for Nigeria’s Socio-Economic Recovery

Dear reader ,

I am excited to share with you my recent article, "Accelerating MSMEs: The Much Needed Catalyst for Nigeria's Socio Economic Recovery," published as an insight piece on pages 73-75 of the 2024 Foresight Africa publication by the Africa Growth Initiative of The Brookings Institute.

In the article, I delve into why policy conversations on stimulating the entrepreneurial ecosystem should focus on enabling productivity for Nigeria's Micro, Small and Medium Enterprises (MSMEs). I also highlight key policy priorities including the following to  enable inclusive and broad-based growth for MSMEs:

• Reviewing the indicators used to measure investments in MSMEs to better reflect and align with socio-economic goals and priorities;

• Disaggregating data segments and accelerating dual transition (digital and green) particularly for vulnerable segments such as youth, women and micro enterprises;

• Removing regulatory bottlenecks and digitizing processes to ensure inclusivity, and

· Fastracking the domestication of the AfCFTA to improve Nigeria’s regional trade competitiveness for MSMEs.

Beyond this article, I also encourage you to explore other recent publications by the FATE Institute of FATE Foundation which were also referenced in the report:

• 2023 State of Entrepreneurship in Nigeria Report: This comprehensive report provides valuable data and analysis on the current state of entrepreneurship across the 36 states and the Federal Capital Territory (FCT) Abuja. It also offers insights into trends, challenges, and opportunities across 5 pillars – business performance, skills acquisition, innovation digital technology adoption, perception of opportunities, and enabling business environment.

• Unlocking Prosperity for Nigeria’s NMSMEs Through Tax Reforms: In this report, we present the case that reforming Nigeria's tax system is crucial for fostering the growth and prosperity of MSMEs. We also propose specific recommendations on how to create a more equitable and supportive tax environment that encourages entrepreneurship and unlocks the full potential of MSMEs as drivers of economic development in Nigeria.

I believe these insights can spark valuable discussions and collaborative efforts towards policy and program priorities for small and growing Nigerian businesses in 2024. I look forward to your feedback and thoughts on the above resources.

Best regards,
Adenike Adeyemi

Executive Director, FATE Foundation