UN Agencies Advocate For Adequate Investment In MSMEs

The United Nations (UN) agencies in Nigeria have emphasised the importance of adequate investment in the development of Micro, Small, and Medium-sized Enterprises (MSMEs) in order to advance the country’s economy.

The agencies announced this at the 2025 MSMEs Day commemoration ceremony in Abuja on Monday.

The event was co-organized by the United Nations Industrial Development Organisation (UNIDO), the International Labour Organisation (ILO), the United Nations Development Programme (UNDP), the United Nations Information Centre (UNIC), and the World Intellectual Property Organisation (WIPO).

Mr Philbert Johnson, Director, UNIDO Sub-regional Office, Abuja, who was represented by Mr. Reuben Bamidele, National Programme Officer at UNIDO, stated that MSMEs’ role in nation building cannot be overstated, and that adequate investment to ensure their long-term growth is critical.

Johnson stated, “We have gathered today to discuss appropriate ways to promote innovation and growth within the MSMEs sector.

“As we all know, in Nigeria, not less than 40 million MSMEs contribute significantly to the country’s economic growth by creating jobs and providing people with a source of income.

“MSMEs, therefore, contribute to the growth of GDP across sectors of the country’s economy. We gathered to discuss the challenges that MSMEs face while also working closely together to achieve long-term growth.”

Dr Vanessa Phala, the ILO Country Representative, emphasised the importance of strategic measures to strengthen the impact of MSMEs on the national economy.

Phala, who was represented by Stephen Agugua, ILO’s National Project Coordinator for the Social Dimension of Ecological Transition, stated, “We look at how MSMEs can drive the future of the economy through job creation and employment. When it comes to job creation and employment, the International Labour Organisation comes into play.

“MSMEs are critical to the growth of every economic sphere: Through this dialogue platform, the ILO will learn about the challenges MSMEs face and explore pathways for ensuring long-term solutions collectively.”

Ms Varsha Redkar-Palepu, the UNDP Deputy-Director who represented the National Programme Specialist and Trade Focal Point at UNDP, Claire Henshaw, described MSMEs as critical to national development.

She stated that MSMEs are critical engines for job creation, innovation, and social mobilisation, especially for women and youths, and that they form the foundation of inclusive and sustainable development in Nigeria. While operating on the margins of formal economic systems, we must prioritise MSMEs in our development.

“In Nigeria and across Africa, MSMEs hold the key to transforming economic opportunities into meaningful development and ambitions into tangible outcomes,” Phala stated.

Dr Chinedu Nnabuihe, Managing-Director of Prohealth, a private organisation, spoke on behalf of the Nigeria Employers’ Consultative Association (NECA) and praised the UN agencies for organising the event.

According to him, the event is dedicated to the invaluable role that MSMEs play in advancing innovation, creating jobs, and promoting inclusive and sustainable economic growth throughout the country.

“In Nigeria, MSMEs are the engine of our economy, driving local production, providing livelihoods, and contributing significantly to national GDP. This comes in the midst of challenges posed by the economic situation, as well as limited access to financing and infrastructure.
“Nigeria’s MSMEs have demonstrated resilience, creativity, and determination. “At NECA, we remain steadfast in our commitment to creating an enabling environment to support MSMEs’ development,” Nnabuihe said.

The event was attended by representatives from Small and Medium Enterprises Development (SMEDAN), Nigerian Association of Small Scale Industrialists (NASSI), Nigeria Association of Small and Medium Enterprises (NASME), and the Corporate Affairs Commission (CAC).

Others include the National Insurance Commission (NICOM), Nigeria Social Insurance Trust Fund (NSITF), and the Abuja Chambers of Commerce and Industry (ACCI).

The event’s high point was stakeholders’ visits to MSMEs’ exhibition stands, an overview of UNDP engagement with MSMEs, government agencies’ engagement with MSMEs, and WIP-intellectual property for MSMEs.