Stakeholders have urged the Federal Government to work with the private sector, especially business membership organisations to undertake a meaningful census of micro, small, and medium-sized enterprises.
The PUNCH reported earlier that the Federal Ministry of Industry, Trade, and Investment said it would conduct a nationwide census of MSMEs in 2025, as part of its economic growth and industrial transformation strategy.
The Minister of Industry, Trade, and Investment, Dr Jumoke Oduwole, with the Minister of State for Industry, Senator John Enoh, described the planned census as a critical step toward “establishing a precise, data-driven roadmap for empowering MSMEs.”
Organised private sector groups individually spoke with Sunday PUNCH on the telephone, welcoming the idea of an MSMEs census, contending that effective policy formation and intervention depend on current and reliable data.
These include the Lagos Chamber of Commerce and Industry, the Nigeria Employers’ Consultative Association, the Association of Small Business Owners of Nigeria, and the National Association of Small-Scale Industrialists.
LCCI President Gabriel Idahosa compared the planned MSMEs census to a periodic data update seen in the rebasing of economic data to have a more accurate coverage of small businesses in the country.
Idahosa expressed confidence in the National Bureau of Statistics to lay the framework for more accurate data collection, stating, “The NBS has its system for gathering that data.”
Similarly, the President of ASBON, Dr Femi Egbesola, described the proposed census as a “welcome development,” stressing that the last MSME data collected over a decade ago is outdated.
“It’s important for the government to have data on every stratum of the economy, particularly the MSMEs, which are described as the engine of growth,” Egbesola said. “We have been brandishing the report that we have 40 million MSMEs in Nigeria for over 10 years, but many things have happened that may have either reduced or increased that number.”
Egbesola emphasised the need for the government to work closely with the private sector in the census process. He observed that past approaches that excluded private-sector collaboration yielded little success.
“If they continue to go about it the way they have been doing, we may not get anything different. The best way is for the government to collaborate strategically with the private sector,” he asserted. “We should co-create, co-own, co-implement, and co-monitor the census process, rather than the government designing it alone and inviting the private sector at the point of implementation.”
The ASBON president further highlighted the importance of including nano businesses, which constitute 87 per cent of MSMEs, most of which are informal, unstructured, and operated by illiterate individuals.
He explained that engaging business membership organisations that house these nano enterprises would ensure their inclusion in the census.
Egbesola called for a transparent process for the census, stating, “We want a transparent process. Not just (to say) that we have X number of MSMEs after the census, but to be able to have things that will be verifiable. That will be important for us.
“If we get this done, I am sure that the landscape of the MSME ecosystem will change because a lot of new revelations will come up from the census. A lot of new policies will arise because of the census, and I am sure that eventually, it will translate to the growth of the MSME ecosystem.”
Further, Egbesola highlighted the risks of relying on outdated or insufficient MSME data, stating that inaccurate figures could lead to ineffective policy interventions, stressing, “If data shows that only four per cent of MSMEs have access to finance, then there should be a state of emergency on access to finance.
“Likewise, if only 13 per cent are involved in exports, targeted interventions should be designed to strengthen the naira and fight inflation.”
National Vice President of NASSI, Segun Kuti-George, also backed the census, describing it as “a step in the right direction.”
He echoed calls for collaboration with OPS groups as he noted that accurate data would help with planning and implementing policies to enhance business growth.
Kuti-George pointed out that until the moment there is conflicting data on MSMEs, remarking, “There are existing differing figures from different sources—the Central Bank of Nigeria, Small and Medium Enterprises Development Agency of Nigeria, etc.—and we must have an updated one.”
“They can begin with existing data from various available sources, including the database of the Corporate Affairs Commission.”
However, the NASSI national VP cautioned against data inflation by regions that might seek undue benefits, urging the government to ensure the credibility of the process.
“They have to be careful so that figures are not inflated from parts of the country that might think it will be of benefit to them if they do so,” he added.
Meanwhile, the Director-General of NECA, Adewale Oyerinde, emphasised the need to establish trust in the census process, which he supported as important for reliable data for national planning.
“For any meaningful roadmap or plan, you need data,” Oyerinde said. “The private sector will be glad to support the government in whatever way necessary.”
He warned against including “emergency” MSMEs”—individuals without genuine business platforms who might distort the figures.
“We must guard against the emergence of emergency MSMEs,” Oyerinde said. “These are individuals without any visible or invisible platforms of or for trade. These groups might distort the data. However, we trust that the government will come up with a workable framework.”
The NECA DG observed there could be a trust gap between MSMEs and the government, as he urged authorities to reassure business owners that the census is for development purposes, not taxation.
He explained, “One impediment, if not addressed, is the paucity of trust in past administrations. It is important to let the MSMEs know that the census is not for tax purposes but aimed at enabling the government to be better positioned to support their growth.”
Previous efforts at measuring the MSME sector include the National MSME Survey conducted by SMEDAN in collaboration with the NBS with a report by then Statistician-General Dr. Yemi Kale in 2017.
Kale surveyed 22,200 households, interviewing 600 households with enterprises per state and 15 selected households per enumeration area to determine micro-enterprises.
For small and medium enterprises, Kale surveyed 4,000 SMEs across all states and the Federal Capital Territory.
In his findings, he reported the total number of enterprises was 41.54m, where micro-businesses numbered 41.47m (99.8 per cent), small businesses numbered 71,288 (0.17 per cent), and medium businesses were 1,793 (0.004 per cent).
Further, he found that the top SME states were Lagos with 8,395 (11.5 per cent), Oyo with 6,131 (8.4 per cent) and Osun with 3,007 (4.1 per cent), while the states with the fewest SMEs were Yobe with 102 (0.1 per cent), Bayelsa with 300 (0.4 per cent) and Borno with 538 (0.7 per cent).