Govt’s Lack Of SME Engagement Hindering Growth, Says ASBON President

The President of the Association of Small Business Owners of Nigeria (ASBON), Dr. Femi Egbesola, has criticised the federal government for its insufficient engagement with small and medium enterprises (SMEs) in the country, stressing that such neglect is hindering economic growth.

Egbesola voiced his concerns during the Vanguard Economic Discourse held on Wednesday, where he called for a more inclusive and collaborative approach to policymaking.

Egbesola highlighted the failure of government policies, arguing that they often miss the mark because they are not co-created with the stakeholders who are directly impacted.

According to Egbesola, the absence of consultation with small business owners in the policy development process results in ineffective regulations that do not address the real needs of the sector.

A significant point raised by the ASBON president was that the smallest businesses that constitute 85.5 per cent of Nigeria’s SME sector remain largely overlooked in government policy frameworks.

Egbesola argued that despite the critical economic role played by these micro-businesses, government regulations are often designed with larger enterprises in mind, leaving nano businesses unsupported.

“Government must focus on this critical sector to drive real growth,” Egbesola emphasised, stressing that a more inclusive and targeted approach is necessary to foster economic development.

He pointed out that the failure to properly engage small businesses could lead to stagnation, as policies that fail to consider the realities of these enterprises will ultimately fail.

In his remarks, Egbesola called for structured collaboration between the government and private sector stakeholders, where all parties are involved in the design, implementation, and evaluation of policies.

“We don’t need pity; we need partnership,” he insisted. Egbesola stressed that policies should not be imposed from above but should be developed jointly with input from those who are directly affected by them.

Further, the ASBON president underscored the need for the government to build stronger support systems and institutions to empower SMEs.

He noted that while resilience among small business owners is admirable, it is unsustainable without adequate strategic backing from the government.

“Without inclusive policymaking, we’ll keep going in circles,” he warned, indicating that the lack of a coordinated approach would lead to continued frustration and stagnation for SMEs.

Egbesola also raised concerns about the limited growth opportunities available to small businesses in Nigeria, pointing out that very few small business owners have successfully transitioned into medium or large enterprises over the past decade.

He lamented the fact that, unlike the success stories of large conglomerates like Dangote, many small businesses in Nigeria struggle to scale up due to the challenging business environment and inadequate support systems.

“How many small business owners have been able to migrate to medium-sized or large enterprises in the last ten years? You can hardly find one,” Egbesola stated.

He argued that this mismatch between government policies and the realities of small businesses needs urgent attention from policymakers, who must engage directly with key stakeholders to better understand the challenges faced by this critical sector.

Egbesola called for a renewed focus on SMEs, urging the federal government to abandon its one-size-fits-all approach to policy and work more closely with small business owners to create a sustainable and inclusive economic environment.

Govt’s Lack Of SME Engagement Hindering Growth, Says ASBON President is first published on The Whistler Newspaper