DG of SMEDAN, Charles Odii Urges FG to Allocate 25% of Contracts to Small and Medium Enterprises

The Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, has called on the Nigerian Federal Government to allocate 25% of its contracts to small and medium enterprises (SMEs). This recommendation is based on the significant contributions of SMEs to the country’s Gross Domestic Product (GDP) and employment. SMEs account for approximately 50% of Nigeria’s GDP and employ about 60 million people.

Key Points

1. Government Contracts for SMEs: Charles Odii emphasized the importance of ensuring that small businesses benefit from government contract awards. Given that SMEs constitute the majority of businesses in Nigeria (96%), he believes that allocating government contracts to SMEs is a crucial step to support their growth.
2. Empowering Small Businesses: Odii acknowledged that many small businesses struggle with issues related to cost and funding. To address these challenges, SMEDAN is committed to helping SMEs reduce production costs and enhance their eligibility for funding.
3. Government as a Major Contributor: The government is recognized as the largest spender and employer in the country. As such, directing a portion of its contracts to SMEs can have a significant impact on these businesses and the broader economy.
4. Structuring SMEs for Funding: Odii highlighted the need for SMEs to be adequately structured to receive funding. Many banks are willing to provide funding, but SMEs often lack the necessary organizational framework. SMEDAN plans to assist at least one million entrepreneurs in structuring their businesses to make them eligible for funding.

Read Also:

• Ahead of Governorship Poll, Gombe Govt Disburses N500 Million To 60 SMEs
• Reasons Emerging Economies Should Prioritise SMEs Growth, Development
• Give 10 Percent Funds To Host Communities In PIB – Wike To NASS

Conclusion

The call for the Nigerian government to allocate 25% of its contracts to SMEs is a significant step toward fostering economic growth and supporting small businesses. Given the substantial contributions of SMEs to the nation’s economy, empowering them with government contracts and financial support can have far-reaching benefits. SMEDAN’s commitment to helping SMEs enhance their eligibility for funding is a positive development for the sector and its future prospects.

Follow us on Facebook