The Nigerian federal government has initiated steps to raise $200 million from philanthropic individuals and organizations, aiming to bolster job creation and offer support to Micro, Small, and Medium Enterprises (MSMEs) across the nation.
With over 36.9 million MSMEs, representing 96.7 per cent of all businesses in Nigeria, the sector plays a pivotal role in the nation’s economic landscape. Startlingly, 67 per cent of these businesses are owned by the youth. They significantly contribute to the country’s Gross Domestic Product (GDP), contributing more than 45 per cent and providing employment for nearly 90 per cent of the workforce.
However, despite their critical contribution to economic development, MSMEs often face funding gaps that impede growth, profitability, and their overall economic impact.
Mr Temitola Adekunle-Johnson, the Senior Special Assistant to the President on MSMEs and Job Creation, revealed that the raised funds will be allocated to vital programs and projects across various target sectors. In this regard, the presidency has established the Nigeria Philanthropic Organisation (NPO), a private sector-led coordinating office to be situated in the vice president’s office, to spearhead this initiative.
Adekunle-Johnson outlined that the NPO will collaborate with donors, impact investors, and financial institutions to bolster the establishment of twelve mega hubs spanning different regions. These hubs aim to catalyze support for both existing and new entrepreneurs, particularly in sectors like renewable energy, agro-processing, furniture, fashion, and other crucial areas of the economy.
“The funds raised will be invested in key programs and projects that will create employment opportunities across different target sectors and foster growth in the MSMEs sector,” Adekunle-Johnson emphasized.
Furthermore, Vice President Kashim Shettima appointed Mrs Thelma Ekiyor-Solanke to chair the Nigeria Philanthropic Organisation. Mrs Ekiyor-Solanke currently serves as the Chairperson of SME.NG and is actively involved in Nigeria’s National Advisory Board on Impact Investing (NABII) while also holding the chairmanship position at the Centre for Analytics and Behavioral Change (CABC) in South Africa.
