By Sodiq Adelakun
Nigeria’s Small and Medium-sized Enterprises (SMEs) must prioritise productivity to participate in global value chains and reap the benefits of international trade, according to Professor Tajudeen Yusuf, a renowned expert in risk management and insurance in University of Lagos.
Speaking at a presentation on Tuesday themed “Institutional Quality, SMEs Productivity, Global Value Chains Participation and Export Intensity in Nigeria,” Professor Yusuf emphasised that SMEs’ productivity is important for integrating into global value chains, which is essential for Nigeria’s economic growth and development.
He called on the government to prioritise enhancing the capacity of Small and Medium-sized Enterprises (SMEs) to drive economic growth and development.
According to him, the government should focus on creating a business-friendly environment that enables SMEs to operate efficiently and effectively.
He said, “Many Nigerians have very avoidable taxation. What is likely is that it is those that are paying, that are being overstretched, that are overpaying. Government should. When you widen the tax net, more people will pay.
“Make it friendly. And judiciously utilise what you collect from it. Let them feel it. When they go on the roads, these roads should be smooth for them to transport their goods and services. When they switch on their light, they can switch on the light to generate, to make them functional.
“Their businesses will be operating. So the cost of government should work more on reducing the cost of business. When they reduce the cost of being a business, more people will come on board.”
He noted that many Nigerians are overburdened with avoidable taxation, and widening the tax net would ensure more people contribute to the economy.
He highlighted the need for smooth roads, reliable electricity, and reduced costs of doing business to enable SMEs to thrive.
Also, UNILAG Director of the Quality Assurance and Servicom Unit, Prof Olufemi Saibu, said the institution has taken a significant step in promoting research in Nigeria by engaging 65 research assistants across the country.
According to him, the university has been empowering researchers by employing them from various states in Nigeria and exposing them to international best practices.
He said the research also involved collaborating with professors from universities close to Japan, further enhancing the research experience.