In a strategic move to diversify Nigeria’s economy and foster sustained inclusive growth, the National Information Technology Development Agency (NITDA) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a Memorandum of Understanding (MOU). This collaboration is set to catalyze the growth of Small and Medium Enterprises (SMEs), crucial for economic diversification and addressing startup challenges under the Nigeria Startup Act.
The signing ceremony, held at SMEDAN’s headquarters in Abuja, underscores the shared commitment of both organizations to bolster the SME sector—acknowledged as the economy’s backbone. Kashifu Inuwa, NITDA’s Director General, emphasized the significance of SMEs, noting their dominance in the business landscape and their pivotal role in the nation’s economic framework.
Inuwa stressed the importance of leveraging technological innovation to enhance SME productivity. He advocated for the digitization of SMEs as a priority to spur prosperity within the country. “Digitizing SMEs is the first step towards creating prosperity for our country,” Inuwa remarked, highlighting the need for a comprehensive database to offer targeted incentives and foster digital literacy among entrepreneurs.
The partnership aims to expand market reach and improve business efficiency through technology. Inuwa shared success stories of women entrepreneurs who, through NITDA’s ICT training programs, have effectively utilized social media platforms to enhance their business visibility and efficiency. “Technology can transform the SME landscape in Nigeria,” he added, illustrating the potential for SMEs to evolve into billion-dollar organizations with the right technological support.
Charles Odii, SMEDAN’s Director General, echoed the sentiment, pointing out the critical role of digital innovation in modern business. He suggested that the digital empowerment of the 40 million small businesses across the country could have a transformative impact on Nigeria’s economy, particularly if each small business could employ at least five people.
This MOU marks a significant milestone towards integrating digital solutions in solving SME challenges, aligning with President Bola Ahmed Tinubu’s administration’s agenda to create jobs and digitize the economy. The collaboration between NITDA and SMEDAN is poised to drive job creation, digital literacy, and sustainable economic prosperity, setting a precedent for future initiatives aimed at enhancing Nigeria’s digital economy.
