Chief Whip of the 8th Opobo/Nkoro Legislative Assembly, Hon. Ayagogo Toby, says that the growth of Small and Medium Enterprises (SMEs) in Nigeria remains the key to poverty alleviation and a prosperous future for Nigerians if well harnessed.Speaking with newsmen recently in Port Harcourt on SMEs and poverty alleviation in society, among other issues, Toby urged the government at all levels to critically examine the need to revisit the issue of SMEs in the country.
She emphasized that proper attention to the sector would create favorable development opportunities for the nation.She admonished President Bola Tinubu, the 36 state governors, and other stakeholders to revitalize the sector, providing opportunities where Nigerians, especially the youth, can build better entrepreneurial bridges for themselves instead of depending on the government for white-collar jobs.
The lawmaker, who represents Opobo/Nkoro Ward 2 in the Assembly, maintained that Nigerians can still show appreciable interest in trade and industry, where the people should be encouraged financially and otherwise. Toby explained that buying and selling remained one of the surest ways to prosperity and wealth creation.She further stated that SMEs in the modern world contribute significantly to economies. She referenced the Organization for Economic Cooperation and Development (OECD) nations, where SMEs account for about 90 percent of companies and 70 percent of all jobs. Hon.
Toby also noted that SMEs contribute to more than 50 percent of the Gross Domestic Product (GDP) in high-income countries.To contextualize the discourse, Toby cited Nigeria’s monetary policies, highlighting that the Central Bank of Nigeria (CBN), in its monetary policy circular number 22 of 1988, defined SMEs as enterprises with an annual turnover not exceeding ₦500,000.
However, she stressed that SMEs are defined differently around the globe.She reiterated that the categorization of a company as an SME depends on the country and various characteristics, including annual sales, number of employees, number of assets, market capitalization, and a combination of these features.Finally, she urged the government at various levels to provide financial support to those planning to venture into SMEs, ensuring they have the resources to actualize their business goals.
