MSMEs contributes 48 percent to GDP — Development Bank MD

By Matthew Denis Abuja

The Managing Director and Chief Executive Officer of Development Bank of Nigeria (DBN), Dr. Tony Oparachi has disclosed that the Micro, Small, and Medium Enterprises, (MSMEs) has contributed 48% percent to Nigeria’s Gross Domestic Product (GDP) in 2022 report.

He made the disclosure at the third  DBN Annual Lecture Series programme held at Transcrop hilltop in Abuja on Thursday.

Recall that the bank has disbursed a whopping total sum of N400billion to MSMEs in the last four years to boost economic growth and development in the country.

He said, “MSMEs has contributed about 48 percent of the National Gross Domestic according to  2022 survey conducted by the Small and  Medium Enterprises Development Agency, (SMEDAN) in collaboration with the National Bureau of Statistics (NBS).

“In today’s increasingly turbulent world, MSMEs find themselves frequently affected by unpredictable external factors such as natural disasters, climate change issues, disease outbreaks, technological and cyber changes, trade disputes, policies, etc, which have had an immense impact on local businesses.

“It is, therefore, imperative for us as a Bank to champion the conversation on how MSMEs can prosper despite the odds, by exposing ways through which MSMEs can adapt in these times. Hence, the DBN Annual Lecture Series Initiative.”

Dr. Oparachi stressed that they are focusing in this Sector because Micro, Small, and Medium Scale Enterprises are responsible for more than two-thirds of all jobs worldwide.

“The International Labour Organization (ILO) data shows that micro- and small enterprises, together, account for a staggering 70% of employment worldwide. In Nigeria, we’re currently plagued with rising inflation of 20.52% (as of September 2022). We are as well afflicted with rising food and commodity prices, coupled with the rising and unstable exchange rates among others.

“The effects of Global disruption on international trade often come as a shock to businesses. These series of events have led to uncertainty and radical changes to companies’ well-established strategies across the globe and MSMEs are not exempted.

“The future of work is currently in a state of flux, with many old and new challenges hitting MSMEs particularly hard. Hence, Governments, corporate bodies, and individuals, mostly MSMEs must find ways to adapt to the changing times and the volatility of the market, deal with uncertainty, and figure out how to convert that into opportunities.

“Today, we have an erudite line-up of keynote speakers, panelists, entrepreneurs who have despite all the challenges, built successful businesses within the Nigerian economy – including manufacturing, banking, finance, technology, real estate, agriculture, education, automotive industry, to name a few. I guarantee that your business issues will be addressed during the discourse.

“I am certain that these successful entrepreneurs have faced the same challenges as some of you are facing today and have overcome them. So, I encourage you to listen, learn and leverage the nuggets to build resilience in your business.

“I leave you with a commitment that DBN will continue to work with its Participating Financial Institutions (PFIs) to eliminate the financing constraints faced by this critical sector of the economy.”

Also Speaking, the Chairman of the Bank, Dr. Shehu Yahaya said, “The DBN Annual Lecture Series is one of the ways we continue to engage with all stakeholders to search for solutions and influence policies aimed at addressing the constraints faced by Micro, Small, and Medium Scale Enterprises especially as it relates to access to finance and building their capacity to upscale sustainably.”

The Chairman emphasized that DBN will continue to work with its Participating Financial Institutions (PFIs) to eliminate the financing constraints faced by this critical sector of the economy.