FG moves to empower MSMEs, combat poverty, food insecurity – Minister

The Federal Government, through the Ministry of Industry, Trade, and Investment, has reaffirmed its commitment to reducing poverty by improving access to finance for micro, small, and medium enterprises (MSMEs).

The Minister of Industry, Dr. Doris Anite, stated the crucial role MSMEs play in Nigeria’s economy, accounting for over 90% of businesses and contributing significantly to employment, income generation, and economic growth.

Anite said the federal government recognized the importance of access to finance for MSMEs, particularly in creating employment opportunities for youths and women.

Speaking at an inaugural lecture with the theme “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria’, organized by the Bank of Industry (BOI), the Minister commended the initiative, stating that it would boost business performance in the country.

According to her, efforts are underway to provide financial support to these businesses, empowering them to drive growth and development.

Anite explained that “micro, small, and medium enterprises are the backbone of many economies around the world, particularly in developing nations like that of Nigeria.

“They account for over 90% of businesses and contribute significantly to employment, income generation, and economic growth.

“In many of our communities, MSMEs provide not only jobs but also innovation and the production of essential goods and services, including food.

“MSMEs also play a pivotal role in addressing poverty by creating employment opportunities, especially for our youth and women, who are often excluded from formal labour markets.

“By empowering individuals with jobs and stable incomes, we also strengthen local economies and enable families to rise out of poverty.

“Moreover, MSMEs serve as crucial players in food production and distribution systems. The food value chain deeply embeds MSMEs, from smallholder farmers to food processors and distributors, she said.

Anite added that by supporting these enterprises, the government is investing in food security at the grassroots level, saying “this has never been more important than now when we could face even more food shortages.”

The Bank of Industry (BOI) is playing a vital role in supporting MSMEs through access to finance and other intervention programs.

The BOI’s Price Intelligence Platform, designed to address inflation and reduce food prices, is a notable initiative.

By empowering MSMEs, the government aims to strengthen local economies, enable families to rise out of poverty, and invest in food security at the grassroots level. This is critical in addressing the current global food security crisis, intensified by conflicts, pandemics, and climate change.

The Development Bank of Nigeria (DBN) has also made significant strides in improving MSME financing, providing wholesale funding to partner financial institutions, and supporting over 321,867 MSMEs, with 66% being women-owned.