Nigeria lost about 3 million SMEs in the past years- SMEDAN DG

In a recent panel discussion organized by the European Union Chamber of Commerce in Lagos, Mr. Charles Odii, Director General/Chief Executive Officer of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), revealed a staggering loss of approximately three million small businesses in Nigeria over the past years.

The CEO attributed this significant decline to environmental challenges, particularly severe flooding in states like Kogi and Benue.

During the discussion titled “Sustainable Business Growth in a Challenging Macro Economic Environment,” Mr. Odii emphasized the need for data-driven approaches to address the adverse impacts on small businesses.

He highlighted that the environmental factors, such as flooding in Benue and Kogi, played a pivotal role in the demise of these enterprises.

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In response to this crisis, SMEDAN is gearing up to launch a dedicated department focused on creating a sustainability framework for small businesses. The agency aims to tackle environmental concerns by promoting alternative energy sources that have a minimal carbon footprint.

One notable initiative already underway is the encouragement of traders in the Wuse market cluster in Abuja to transition from petrol generators to solar panels and batteries. This shift not only proves to be cost-effective but also aligns with the agency’s commitment to environmental responsibility.

Looking ahead, SMEDAN envisions scaling these sustainability initiatives, including the establishment of green cities for light manufacturing targeted at small businesses. Collaborative efforts with state governments, some of which have already provided land for these initiatives, are expected to play a crucial role in reshaping Nigeria’s small business landscape for a more sustainable future.