The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is urging the federal government to award 25% of its contracts to small and medium enterprises (SMEs) in the country.
SMEDAN Director General Charles Odii says allocating a quarter of government contracts to SMEs is critical since these businesses contribute around 50% of Nigeria’s gross domestic product and provide jobs for approximately 60 million citizens.
“The government is the biggest spender and employer in the nation. We want small businesses to benefit from contract awards,” Odii told journalists on Thursday, November 2nd, in Abuja.
He added that for SMEs to successfully win government tenders, they need to be well-equipped and structured appropriately.
Odii noted that 96% of all businesses in Nigeria are small enterprises, with only 4% being large corporations.
Earlier meetings between SMEDAN, young legislators, and SME owners identified cost and funding as key challenges for smaller firms. Odii assured them that SMEDAN would assist in reducing production expenses.
“Many banks want to provide financing but can’t lend to small businesses that lack proper organisational structures. We will help at least one million entrepreneurs formalise their operations to qualify for funding,” he remarked.
SMEDAN’s push for earmarking a quarter of government contracts for SMEs will empower these vital businesses to thrive, boost jobs, and drive economic growth in Nigeria.