MSMEs sector worst hit by COVID-19 - FG

The federal government said that the Micro, Small and Medium Enterprises (MSMEs) were the most adversely affected sub-sector of the nation’s economy by the lingering COVID-19 pandemic.

The Minister of State for Industry, Trade and Investment, Ambassador Mariam Katagum, who disclosed this during the 2020 world MSMEs Day virtually held on Tuesday, said the pandemic triggered severe adverse economic shocks to small enterprises.

She said, “Businesses have witnessed supply chain disruptions and low demand for products and services, which in turn have resulted in substantial revenue loss. This has complicated the challenges of the vulnerable MSME sector, making the sector one of the most adversely affected by the economic fall-out of the pandemic.”

Katagum said MSMEs made up over 90% of all businesses in the world and accounted, on average, for 60 to 70% of total employment and 50% of Gross Domestic Product (GDP) worldwide.

In Nigeria, the recent survey conducted by the National Bureau of Statistics (NBS) in conjunction with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) showed that the

MSMEs sector employed about 76% of the nation’s labour force and contributes about 50% to the GDP.

To mitigate the impact of the scourge, the minister said “government has continued to explore interventions to cushion the effects of the economic downtime, especially on small businesses by providing palliatives to enable recovery, sustenance and improvements.”