BOI Says SMEs Account For Majority Of Business Enterprises

Olukayode Pitan, the Managing Director/Chief Executive Officer, Bank Of Industry, has said globally, small and medium enterprises account for the majority of business enterprises.

Pitan said they contribute to production output, exports, and boosting innovation, which represented hallmarks of economic growth in most economies, and also contribute between 40 per cent and 55 per cent of Gross Domestic Product and 50 per cent to 80 per cent of employment in most economies, according to World Bank.

According to a statement, Pitan spoke at the regular weekly meeting of the Rotary Club of Lagos.

He said SMEs possess great potential for employment generation, improvement in local technology, economic diversification, and development of indigenous entrepreneurship and wealth.

"In Nigeria today, we have 39.7 million MSMEs, contributing 46.3 per cent to national GDP, accounting for 96.7 per cent of businesses, 87.9 per cent of employment, 6.2 per cent to exports,” he said.

He added that with a rapidly growing population that was expected to increase from 200 million currently to 410 million in 2050, there is an opportunity for Nigerian SMEs to provide services, jobs, innovation and economic growth to meet the country’s growing needs.