Fed Govt committed to supporting informal sector, proffer solution for growth
The Minister of Industry Trade and Investment, Doris Uzoka Anite, disclosed that the government is committed to supporting small businesses in the informal sector as they contribute largely to the nation’s GDP.
Anite noted that the report will help the government to understand the informal sector’s needs and proffer solutions that would enhance growth.
“We will see how we can take every recommendation and move the reports forward. Be assured of the government’s full support”, she said.
The minister stated this at Nigeria’s Informal Economy Report hosted by Moniepoint Nigeria and SMEDAN in Abuja, she added that this report is most important because the government will rely on this report to better understand the informal sector and know their needs as it aligns with the renewed hope agenda of financial inclusion in the country.
The Director General Small and Medium Enterprise Development Agency SMEDAN Charles Odii said the government is doing a lot but the small businesses are not aware, which is why SMEDAN has taken it upon itself to help the small businesses.
Odii said: “Business owners should endeavour to form an association or corporations so they can access funds for their businesses. There are 40 million businesses operating in Nigeria today and Moniepoint has been able to reach out to 5% out of the 40 million of these businesses”.
He lamented that most businesses decided to remain informal because of stiff government regulations. This among other important reasons is why the government wants to start supporting small businesses in clusters. Small businesses remain the engine room of the economy and serve as the pistons providing momentum.
He said the vast majority of the country’s 40 million small businesses resided in the informal sector, which accounted for millions of jobs in the economy, ensuring their survival and growth remains crucial for poverty elimination, rural industrialization, and the enhancement of livelihoods.
