Nigeria has recorded high level of Informality in Micro Small and Medium Enterprises (MSMEs) operations as the major deterrent to their ability to access government funds and polices required to upscale, Minister of Women Affairs and Social Development, Hajia Aisha Abubakar has said.
The MSMEs are the engine of economic growth of nations and the benefits and multiplier effect of investing in MSMEs sector results in positive socio-economic impacts at all levels.
The Minister who also doubles as the Minister of State, Industry Trade and Commerce said urged all MDAs and Stakeholders involved in the implementation of the recommendations of this report and strategic plan to fully commit themselves to this effort.
She said this at the public presentation of reports and recommendation on MSMEs reclassification and strategic framework and implementation plan on MSME re-categorization and enhanced local content development and implementation strategy in Abuja on Tuesday.
According to her, the impact is more pronounced in developing and emerging economies where MSMEs utilize labour intensive technologies and modes of operation.
Also, the Director General of the Small and Medium Development Agency of Nigeria (SMEDAN) Alhaji Dikko Radda said the country has more than 98% of informal MSMEs in the country adding that it is big issue.
He said one can only grow an MSMEs if it is formalized , calling on the FG and stakeholders to be involved in formalizing the MSMEs.