A new business report has highlighted structural reforms required to strengthen small-scale enterprises in Nigeria, emphasising finance access, digital integration and regulatory simplification as priority areas.
Expanding financial inclusion
The report identifies limited access to affordable credit as a primary constraint affecting micro and small enterprises. Many businesses operate outside formal banking systems, restricting their eligibility for structured loans.
It recommends expanded microfinance frameworks, credit guarantee schemes and blended financing models that combine public and private sector funding. Structured financial inclusion, according to the report, is essential to unlocking grassroots productivity.
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Leveraging digital tools
Technology adoption was identified as critical for improving record keeping, expanding market reach and enhancing operational efficiency. The report urges targeted digital literacy programmes to support traders, artisans and service providers transitioning into formal business structures.
Digital payment systems and e-commerce platforms were also cited as mechanisms for reducing cash dependency and improving revenue tracking.
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Regulatory and policy adjustments
Multiple taxation, complex registration processes and policy inconsistencies were highlighted as barriers limiting enterprise expansion. The report calls for simplified regulatory frameworks and predictable tax systems to create a stable business environment.
Coordinated collaboration between federal and state institutions is considered essential to reducing administrative burdens on small businesses.
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Economic significance of small enterprises
Small-scale enterprises account for a significant share of employment and informal economic activity across Nigeria. Strengthening this segment is viewed as central to poverty reduction and inclusive growth.
The report concludes that sustainable SME development will depend on long-term institutional commitment, improved financing models and consistent regulatory reforms.
As Nigeria seeks broader economic diversification, empowering small businesses remains a foundational strategy for stabilising income generation and expanding domestic production capacity.
