Abuja, Nigeria – Speaker of the House of Representatives, Abbas Tajudeen, has revealed that nearly half of small-scale businesses in Nigeria collapse within their first year, citing poor access to formal credit, inadequate infrastructure, limited technology adoption, and weak management skills as major challenges.
Speaking at a Youth Summit organized by his office on Monday, Tajudeen emphasized the critical role of small and medium-sized enterprises (SMEs) in economic growth, noting that SMEs represent over 90% of businesses globally and contribute nearly 70% of employment in many developing economies.
“According to the PricewaterhouseCoopers 2024 survey in Nigeria, SMEs account for more than 84% of businesses, contribute about 48% to the nation’s GDP, and make up 96.8% of registered businesses,” he said.
The Speaker highlighted the Renewed Hope Agenda, which aims to drive Nigeria toward a trillion-dollar economy within five years by leveraging SME growth. He stressed that while Nigerian entrepreneurs are full of ideas and courage, the system supporting them has often been fragmented, uncoordinated, and insufficiently structured to transform potential into prosperity.
Tajudeen outlined the government’s commitment to building a more enabling environment through coordinated initiatives, legislative support, and robust policy frameworks. “The Enterprise Grant being introduced here will be measured not by the size of the cheques, but by the number of viable businesses it helps stabilize and scale,” he said.
Key measures discussed include:
- Legislative backing for innovation hubs, tax breaks for tech startups, and mentorship programs.
- Expansion of SME financing through initiatives like the Agribusiness Small and Medium Enterprises Investment Scheme (AGSMEIS) and the MSME Intervention Fund.
- Policies promoting local content, public procurement favoring local suppliers, and digital inclusion initiatives to boost broadband access and AI adoption for SMEs.
- Tax relief measures under the Nigeria Tax Act 2025, including zero percent Companies Income Tax for businesses with gross turnover under ₦100 million, exemptions from development levies, and simplified compliance requirements.
- Expansion of vocational and entrepreneurship training, including proposals for SME-focused centers in all 774 local government areas.
Tajudeen also underscored the importance of inclusivity, saying that a productive economy must benefit those historically left on the margins. “Our enterprise agenda is not just about creating star entrepreneurs, but raising a generation of businesses that can compete globally because their foundations are strong,” he said.
The House of Representatives is working on complementary legislation, including the Innovation and Entrepreneurship Support Bill 2025, the Factoring and Invoice Discounting Bill, and amendments to the Nigerian Export-Import Bank Act to support SME financing and trade expansion.
Tajudeen concluded by calling on all stakeholders – government, private sector, development partners, and financial institutions – to collaborate and create a system where entrepreneurship can thrive. “When institutions align, impact multiplies. Our vision is to transform potential into lasting prosperity for Nigeria’s youth and businesses,” he said.
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