The decision of the Nigerian Export-Import Bank (NEXIM) to support the export business of Small and Medium Enterprises (SMEs) with N36 billion in 36 states is encouraging. Under the plan, the bank has earmarked a minimum of N1billion for every state. Although N1 billion is too meager to make appreciable impact in the export sector, it is good to start somewhere.
However, we believe that close monitoring of the disbursement of the fund is of utmost importance in achieving the desired results. SMEs are businesses with less than N100 million in annual turnover and have less than 300 employees. According to the national survey by the Small Medium Enterprises Development Agency of Nigeria (SMEDAN), there are about 41.5 million SMEs in Nigeria. The number exceeds those in the United States, with 30.7 million SMEs. Therefore, the role of small businesses in Nigerian economy cannot be over-emphasised. SMEs account for about 84 per cent of jobs in the country. Read More.