PRELIMINARY REPORTForeword
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) wasestablished in 2003, to facilitate the promotion and development of a structured andefficient Micro, Small, and Medium Enterprises (MSMEs) Sector that will enhancesustainable economic development in Nigeria. The Agency is the apex and coordinating
institution for all matters relating to starting, resuscitating and growing MSMEs in Nigeria.
The Agency is also saddled with the responsibility of contributing to the attainment of Vision
20-2020, the Transformation Agenda of the present administration and the Cluster
Development Approach of the Ministry of Trade and Investment. We provide the following
Services:

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Generation and dissemination of Business information
Business Awareness creation
Business Development Services
Access to Market and Finance
Advancing Entrepreneurship Education
Stimulating Entrepreneurship/Enterprise Development
Enterprise cooperation and clustering
Policy Advocacy for improved Business Operating Environment,with the overall objective of alleviating poverty, expanding gainful employment
opportunities, wealth creation and sustainable economic growth and development.
The Micro, Small and Medium Enterprises are globally acknowledged as the oil required tolubricate the engine of socio-economic transformation of any nation. The MSME sector is
strategically positioned to absorb up to 80% of jobs, improve per capita income, increasevalue addition to raw materials supply, improve export earnings and step up capacity
utilisation in key industries. The sector is structured across other key sectors, including
Agriculture, Mining and Quarrying, Building and Construction, Manufacturing, Solid
Minerals, etc, and thus has strong linkages with the entire range of economic activities in the
country.
It is therefore on the above premise that this Survey was conceived as our concerted
response to the challenges of building a credible and reliable MSME database required to
strategically reposition the sector. The dearth and paucity of credible and reliable databaseis one of the main constraints to the development of the MSME Sector in Nigeria. Due to theabsence of a robust MSME database, the Agency and other principal stakeholders could not
proactively evolve sustainable intervention strategies toward repositioning and creating
efficient and sustainable MSME sector in Nigeria.
In addition to the afore-mentioned, The Agency recognizes the importance of credible andreliable data for Planning and Decision-Making. Consequently, some of the key deliverablesof the survey include: Contribution of the sector to the Gross Domestic Product; Contribution to employment;2010 NATIONAL MSME COLLABORATIVE SURVEY Determine the number of MSMEs in Nigeria on geo-political and sectoral
basis;
 Identify the challenges and constraints confronting the operations of MSMEs
in Nigeria; Identify the skill gaps within the sector;
 Determine the grow rate of MSMEs; among others.
It is in this regard that we undertook this Collaborative Survey with the Bureau, as a key
Public Sector Institution with distinct competence and wide experience in data collection,
collation and analysis. The Survey was conducted in the 36 States of the Federation and theFederal Capital Territory after the Pre-test in Lagos and Kano States.
I salute the Statistician-General, Dr. Yemi Kale and his management team as well as some ofhis predecessors who were involved at the inception of this project for their dedication,
tenacity and commitment to the success of this survey. I also commend the Business
Membership Organisations and Chambers of Commerce who constituted majority of the
respondents for their cooperation, unalloyed support and input that enhanced the quality
and credibility of the survey.
I call on both local and foreign investors to leverage on the MSME database and invest in this
sector. I also implore the development partners, public and private sectors to collaborate
and partner with the Agency to advance the course of the sector.
This National MSME Survey is what we are all waiting for to revolutionalise the sector. The
survey will in no doubt assist the Agency in evolving a Strategic Action Plan towards the
emergence of virile and vibrant MSMEs that will stimulate and facilitate socio-economic
development of Nigeria in accordance with the Agency’s Enabling Act.

Muhammad Nadada Umar
Director-General/CEO
SMEDAN2010 NATIONAL MSME COLLABORATIVE SURVEY

Preface
The contribution of the Micro, Small and Medium Enterprises (MSME’s) to theeconomic growth of a nation is well recognized. In developing countries like Nigeria, thecontribution of MSME’s towards employment generation is significant because they•tend to use more labour intensive production processes than large enterprises,
boosting employment and leading to more equitable income distribution•

provide livelihood opportunities through simple, value adding processing
activities in agriculturally based economies;•

nurture entrepreneurship; and•support the building up of systemic productive capacities and the creation ofresilient economic systems, through linkages between small and large enterprises

Study findings on MSME in other developing countries have indicated that countries
with larger share of MSME employment have higher economic growth than theircounterparts. In fact it is suggested that one of the significant characteristics of aflourishing and growing economy is a booming and blooming MSMEs sector. MSME
therefore play an important role in the development of a country by aforementioned,
creating employment for rural and urban growing labor force, providing desirable
sustainability and innovation in the economy as a whole .In addition to that, a large
number of people rely on the small and medium enterprises directly or indirectly. Mostof the current larger enterprises in Nigeria and indeed in the world have their origin insmall and medium enterprises. In fact it can be said that MSMEs are different from large
scale enterprises in three main aspects: uncertainty, innovation and evolution.
According to the United Nations Industrial Development Organization UNIDO, fordeveloping countries, integration into the global economy through economic
liberalization, deregulation, and democratization is seen as the paramount way to triumphover poverty and inequality. Important to this process, is the development of ananimated private sector, in which small and medium enterprises can play a central role.
Because MSMEs have a propensity to employ more labor-intensive production processes
than large enterprises, they contribute significantly to the provision of productive
employment opportunities, the generation of income and, eventually, the reduction ofpoverty. According to the statistics, in industrialized countries, MSMEs are major
contributors to private sector employment. Empirical studies have shown that SMEs
2010 NATIONAL MSME COLLABORATIVE SURVEY

contribute to over 55% of GDP and over 65% of total employment in high income
countries .MSMEs and informal enterprises, account for over 60% of GDP and over
70% of total employment in low income countries, while they contribute about 70% of
GDP and 95% of total employment in middle income countries. MSMEs also playsignificant contribution in the transition of agriculture-led economies to industrial ones
furnishing plain opportunities for processing activities which can generate sustainablesource of revenue and enhance the development process. MSMEs shore up the
expansion of systemic productive capability. They help to absorb productive resources at
all levels of the economy and add to the formation of flexible economic systems in whichsmall and large firms are interlinked. Such linkages are very crucial for the attraction offoreign investment. MSMEs are therefore a distinctive mainstay of the economy that
requires owing attentiveness.
Despite an understanding of the importance of MSME in Nigeria in particular, there is a
dearth of information about their number, people they employ and sectors they operatein Nigeria. While the development of the MSME is unarguably the mandate of Small andMedium Enterprises Development Agency of Nigeria (SMEDAN), The National Bureauof Statistics (NBS) according to the Statistics Act, 2007 is the main National Agency
responsible for the development and management of official statistics, the authoritative
source and custodian of official statistics in Nigeria. The NBS is responsible forcoordinating the National Statistical System (NSS); advising Federal, States and Local
Governments on all matters relating to statistical developments; developing andpromoting the use of statistical standards and appropriate methodologies in the systemamong other responsibilities. Accordingly, NBS in collaboration with the SMEDAN
conducted a survey on Micro, Small and Medium Enterprises aimed at providing
adequate and reliable baseline data for the development of the sector, based on activities
that occurred in 2010.
This study seeks to assess the Micro, Small and Medium Enterprises (MSMEs)
objectively by presenting certain key data on the sector. Such data include MSMEs
contribution to Gross Domestic Product (GDP), the number and structure of operatives
in the sector and the main challenges and constraints confronting the sector. It also goes
further to proffer solutions to the challenges, making policy recommendations togovernment for the development of the sector.

2010 NATIONAL MSME COLLABORATIVE SURVEY

Chapter one gives a background to the study, providing a brief history of MSMEs in the
country, outlining its relevance, importance and structure. It shows the important role of
MSMEs as catalysts for the economic transformation. The main reason espoused in thereport for this is the low level of capital required to establish them and their labour
intensive modes of operation which guarantees employment for a large number ofpeople. Chapter two of the report provides an overview of the MSMEs in Nigeria. It
provides some history of MSMEs dating back from the colonial days, showing some ofthe efforts and policies introduced by various governments to develop the sector andattract Foreign Direct Investment (FDI). A recent effort by the government to develop
the sector was the Microfinance Policy Regulatory Framework, which is aimed atproviding sustainable and credible microfinance bank, capable of channelling funds tothe sector. The chapter also sheds some light on the agency responsible for thepromotion and development of the sector that is the Small and Medium Enterprises
Development Agency, SMEDAN, highlighting its functions and performance since its
inception in 2004.
Chapter three follows with details of the survey design, methodology and coverage of thesurvey. The survey was conducted in all 36 states of the Federation including the Federal
Capital Territory, Abuja. Divided into household and agric and business components,
300 micro enterprise households per state were visited while 4000 small and medium
enterprises cutting across 12 sectors of the economy were covered. This sample provides
estimates robust enough to compute the data. Chapter four provides analyses thefindings of the survey data. Parameters such as number of enterprises by state and sector,
start-up capital, ownership status by sector and gender are used to analyse the findings.
The analysis of the data revealed that MSMEs play a very big role in the Nigerian
economy, contributing about 46% of the Gross Domestic Product (GDP). Other
interesting data on MSMEs in Nigeria are shown, providing a basis for well-informed
decisions among planners, researchers and policy makers. Its show the significance andthe potential for growth in the sector if the properly developed, particular as the nation
aspires to be among the top twenty economies in the world by the year 2020.
The Report concludes by highlighting the challenges facing the MSME sector in Nigeria.
With weak infrastructure, lack of access to finance and inconsistent government policies

2010 NATIONAL MSME COLLABORATIVE SURVEY

listed as the main challenges. Many MSMEs lack knowledge of the various laws, policies
or statutes that protect them and can help them expand and grow. MSMEs are a major
employer in Nigeria, it is therefore important that they are made aware of what isavailable to them
The NBS is delighted to have been associated with this study, as it provides adequate
data that goes toward populating our statistical database and makes available, relevant
data required for the development of the sector. This project could not have been put
successful without the hard work of the management and staff of the NBS andSMEDAN. In particular, the dynamic role and commmitment of the Director-General of
SMEDAN, Alhaji Muhammad N. Umar, needs a special mention. Finally, I would like toconvey my sincere gratitude to all producers and providers of data all around the country,
whose valuable inputs made the publication of the report possible.
Dr Yemi Kale
Statistician General of the Federation and Chief Executive Officer
National Bureau of Statistics

2010 NATIONAL MSME COLLABORATIVE SURVEY

Acknowledgement
The implementation of this survey is the combined efforts of key stakeholders of National
Bureau of statistics (NBS) and Small and Medium Enterprise Development Agency of Nigeria(SMEDAN).
The funding of the project by Small and Medium Enterprise Development Agency of Nigeria(SMEDAN) and her efforts in defining the concepts and other valuable contributions are
acknowledged.
The technical support of the NBS was pertinent for the success of the survey.
Our profound appreciation is also for the Statistician General (NBS) and the Chief Executive
Officer (CEO), Dr. Yemi Kale for his tenacity of purpose and steadfastness to the success ofthe survey.
Our many thanks also go to the Director General and Chief Executive Officer of Small andMedium Enterprises Development Agency of Nigeria (SMEDAN), Muhammad Nadada Umarfor his unbending support to driving the project to successful end.
The efforts of the staff of both organizations who were actively involved in the planning andimplementation of the survey are commended and they are C. O. Moneke, HOD Real Sectorand Household Department, (Retired), Mr. N. B. Nwokoro, Head of Agric. Business Enterprise
Statistics Division Mr. Olawale Fasanya, Director, Strategic Planning, Policy and Coordination(SMEDAN) Dr. Friday Okpara, Deputy Director (SMEDAN) and Mrs. Ime E. Andy (SMEDAN).
Our special thanks also go to the following members of NBS and SMEDAN staff who took
active part in analysis and writing of the report. Ademola Adegbie, S. D. Oladunjoye, Sanusi
Ahmed, Akpan M. O, Adeyinka A, Adeniji Beatrice Olayioye, Abubakar Aliyu, Ijomah
Eberechukwu Felix, Muoboghare Anthony and host of other staff from both organizations.
Finally, we thank all those who space would not permit us to mention for their invaluable
contributions to the conduct of this survey.

N. G. Oparaku
HOD (RSHSD)
NBS

2010 NATIONAL MSME COLLABORATIVE SURVEYABBREVIATIONS AND ACRONYMS
BMOS-

Business Membership Organisations

AIDS

-

Acquired Immune Deficiency Syndrome

BOI
BDS

-

Bank of Industry
Business Development Services

BICs

-

Business Information Centres

BPC
BSCs
CBN
CCSS
CEO
CD

-

Business Plan Competition
Business Support Centres
Central Bank of Nigeria
Challenges Capital Subsidy Scheme
Chief Executive Officer
Compact Disk

CEDP

-

Corper's Entrepreneurship Development Programme

CTG
CGS

-

Cotton, Textile and Garment
Credit Guarantee Scheme

EDPs

-

Entrepreneurship Development Programmes

ETPs

-

Entrepreneurship Training Programmes

EAs-

Enumeration Areas

FBI-Faith Based Initiative

FSS 2020-

Financial System Strategy 2020

FDI-

Foreign Direct Investment

GEDP

-

General Entrepreneurship Development Programme

GHAIN

-

Global HIV/AIDS Initiative Nigeria

GDP-

Gross Domestic Product

HOD-

Head of Department

HHs-

Households

HIV-

Human Immune Deficiency Virus

IDCs

-

Industrial Development Centres

IID-

Industrial Infrastructure Development

IOM-

International Organisation for Migration

JICA

-

Japan International Cooperation Agency

LGAs

-

Local Government Areas

MAN-

Manufacturers Association of Nigeria

MDA-

Marketing Development Assistant

MSI-

Medium Scale Industries

MOU-

Memorandum of Understanding

2010 NATIONAL MSME COLLABORATIVE SURVEY

MSMED-

Micro, Small and Medium Enterprises Development

MSMEs

-

Micro, Small and Medium Enterprises

MCP-

Microfinance Certification Programme

MDAs

-

Ministries, Departments and Agencies

NAFDAC-

National Agency for food and Drug Administration and Control

NASENI-

National Agency for Science and Engineering Infrastructure

NACCIMA-

National Association of Chambers of Commerce, Industry, Mines and Agriculture

NASME

-

National Association of Small and Medium Enterprises

NASSI

-

National Association of Small Scale Industrialists

NBTE

-

National Board of Technical Education

NBS-

National Bureau of Statistics

NDLEA

-

National Drug law Enforcement Agency

NERFUND-

National Economic Reconstruction Fund

NISH

-

National Integrated Survey of Household

NISE

-

National Integrated Survey of Establishment

NOTAP

-

National Office for Technology Acquisition Promotion

NPOPC

-

National Population Commission

NUC-

National Universities Commission

NEPC

-

Nigeria Export Promotion Council

NEXIM

-

Nigeria Export, Import Bank

NCFR

-

Nigerian Commission for RefugeesNGO-

Non Governmental Organisation

OLOP

-

One Local Government One Product

PSL-

Priority Sector Lending

PPP-

Private Public Partnership

PAT-

Profit After Tax

RMRDC

-

Raw Material Research Development Council

RSHSD

-

Real Sector and Household Statistics Department

REDI

-

Rural Enterprise Development Initiative

RUFIN

-

Rural Financial Institute Building

RUWEDEP-

Rural Women Enterprise Development Programme

SMEDAN-

Small and Medium Enterprises Development Agency of Nigeria

SMEEIS-

Small and Medium Enterprises Equity Investment Scheme

SMIDA

-

Small and Medium Industry Development Agency

2010 NATIONAL MSME COLLABORATIVE SURVEYSMIEIS-

Small and Medium Industry Equity Investment

SMI-

Small and Medium Enterprises

SME-

Small and Medium Enterprises

SMSEGS-

Small and Medium Scale Enterprises Guarantee Scheme

SEDF

-

Small Enterprises Development Fund

SIDBI

-

Small Industries Development Bank of India

SIDO

-

Small Industries Development Organisation

SSI-

Small Scale Industries

SSI & ARI-

Small Scale Industries and Agro/Rural Industries

SON-

Standard Organization of Nigeria

SFCs

-

State Financial Corporations

SIDCS

-

State Industrial Development Corporations

SAP-

Structural Adjustment Programme

SAGE

-

Students for the Advancement of Global Entrepreneurship

SPX-

Sub-Contracting and Partnership Exchange

TRATOW-

Train to Work

TOT
UK

-

Training of Trainers
United Kingdom

UNHCR

-

United Nations High Commission for Refugees

UNIDO

-

United Nation industrial Development Organization

USA-

United States of America

WEDP

-

Women Entrepreneurship Development Programme

WASME

-

World Association for Small and Medium Enterprises

WTO
YCEDP

-

World Trade Organisation
Youth Corpers Entrepreneurship Development Programme

YOU WIN
YEDP-

Youth Enterprise with Innovation in Nigeria
Youth Entrepreneurship Development Programme

2010 NATIONAL MSME COLLABORATIVE SURVEY

May 2012

Contents

Page

1

Executive Summary

122

Introduction

15

2.1 Preamble ...................................................................................................... 15
2.2 Background to the Study .............................................................................. 16
2.3 Objectives of the Study ................................................................................ 17
2.4 Definition ..................................................................................................... 18
2.5 Relevance of MSMEs ..................................................................................... 18
2.6 Structure of the Report ................................................................................. 19

3

Overview of the MSME Sector

21

3.1 Introduction ................................................................................................. 21
3.2 Recent Efforts by Government to Stimulate the MSME Sector ........................ 25
3.3 The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
Introduction ................................................................................................. 29
3.4 THE ROLE OF SMEDAN- INTERVENTION AND STRATEGY ............................... 30
3.5 SMEDAN’s Scorecard .................................................................................... 34
3.6 Entrepreneurship Development and Education in our Educational System .... 35
3.7 Business Development Services (BDS) ........................................................... 36

3.8 Entrepreneurship Training Programmes (EDPs) ............................................ 37
3.9 Barry University, Miami, Florida/Africa-Diaspora Partnership for
Empowerment & Development (ADPED)/SMEDAN Partnership ...................... 37

3.10Enterprise Linkages, Cooperation & Clustering .................................... 40

3.11

Advocacy and Operating Environment ................................................. 41

3.12

Access to Finance ................................................................................ 41

3.13

National Policy on MSMEs .................................................................... 42

3.14

Conversion of the IDCs to Clusters ...................................................... 42

May 2012

3.15

Collaboration with Japan International Cooperation Agency (JICA) on

One Local Government One Product (OLOP) Programme: ............................. 44
3.16

Implementation of the Sub-Contracting and Partnership Exchange (SPX):a SMEDAN/UNIDO Collaboration .................................................................. 44

4

3.17

Collaboration with Ondo State Government on Akure IDC: .................. 45

3.18Peter Akinola Foundation Collaboration: .............................................. 45

3.19

Industrial Project Profile on Sachet Water Production ........................... 46

3.20

Some Country Experiences in MSME Development ............................... 46

Methodology

54

4.1 Survey Design for the Study ......................................................................... 54
4.2 Survey Objectives ......................................................................................... 54
4.3 Coverage ...................................................................................................... 55
4.4 SCOPE .......................................................................................................... 55
4.5 Sample Design ............................................................................................. 55
4.6 Pretest .......................................................................................................... 57
4.7 Survey Instrument ........................................................................................ 57
4.8 Training for Fieldwork .................................................................................. 57
4.9 Fieldwork Arrangement ................................................................................ 58

5

4.10

Data Processing ................................................................................... 58

4.11

Report writing ...................................................................................... 59

4.12

Documentation/Dissemination/Archiving ............................................ 59

Data Analysis: The Formal Sector – Small and Medium Enterprises

60

5.1 The Formal Sector – Small and Medium Enterprises ...................................... 60

May 2012

5.2 Data Analysis: The Informal Sector – Micro Enterprises ................................ 84

May 2012

5.3 Contribution of MSMEs to the Gross Domestic Product (GDP) ....................... 97

6

Key Findings, Conclusions And Policy Recommendations

107

6.1 Key Findings ............................................................................................... 107
6.2 Conclusion ................................................................................................. 110
6.3 Policy Recommendations ............................................................................ 111

Appendix114

May 2012

Table of Figures
Figure 1 Total Number of Small and Medium Enterprises by Sector ...................................... 60
Figure 2 Start-Up Capital .......................................................................................................... 61
Figure 3 Total Capital by Enterprises as at December 2010 ................................................... 62
Figure 4 Gender of Owner (Sole Proprietorship) ..................................................................... 64
Figure 5 Age of Owner (Sole Proprietorship) ........................................................................... 64
Figure 6 Highest Qualification Attained by Owner .................................................................. 65
Figure 7 Initial Total Assets at Inception .................................................................................. 65
Figure 8 Total Asset Value as at December 2010 .................................................................... 66
Figure 9 Source of Capital ........................................................................................................ 66
Figure 10 Business Monthly Sales (Turnover) 2009 ................................................................. 67
Figure 11 Business Monthly Sales (Turnover) 2010 ................................................................. 67
Figure 12 Business Monthly Cost of Operation ....................................................................... 68
Figure 13 Promotional Media Used by the Enterprise ............................................................ 68
Figure 14 Business Insurance ................................................................................................... 69
Figure 15 Employment by Sex at Commencement of Business............................................... 70
Figure 16 Employment by Sex as at December 2010.............................................................. 71
Figure 17 Educational Qualification of Employees ................................................................. 72
Figure 18 Market Channel of Product(s) .................................................................................. 72
Figure 19 Export of Product/Services ...................................................................................... 73
Figure 20 Business Association ................................................................................................ 73
Figure 21 Business Patent Right by Sector............................................................................... 74
Figure 22 Own Patent Right by Form of Ownership ................................................................ 75
Figure 23 Registered Patent Right by Sector ........................................................................... 75
Figure 24 Own Patent Right by Form of Ownership ................................................................ 76
Figure 25 Skills Gap by Sector .................................................................................................. 77
Figure 26 Skill Gap by Form Ownership ................................................................................... 77
Figure 27 Major Government Policy that Affect Businesses Most Favorably ......................... 78

May 2012

Figure 28 Major Government Policy that Affect Businesses Most Unfavourably ................... 78
Figure 29 Top Priority Areas of Assistance .............................................................................. 79
Figure 30 Awareness of SMEDAN ............................................................................................ 80
Figure 31 Awareness of SMEDAN by State .............................................................................. 80
Figure 32 Awareness of SMEDAN by Sector ............................................................................ 81
Figure 33 Benefit from SMEDAN Services............................................................................... 81
Figure 34 Export of Products/Services .................................................................................... 82
Figure 35 Banking Relationship................................................................................................ 83
Figure 36 Business Registration ............................................................................................... 83
Figure 37 Business Plan............................................................................................................ 84
Figure 38 Number of Enterprises by Economic Sector ........................................................... 85
Figure 39 Total Capital as at December 2010 ......................................................................... 86
Figure 40 Enterprise by Ownership Status .............................................................................. 86
Figure 41 Highest Qualification Obtained by Owners ............................................................. 88
Figure 42 Source of Capital ...................................................................................................... 89
Figure 43 Promotional Media .................................................................................................. 90
Figure 44 Market Channel of Product...................................................................................... 91
Figure 45 Own Patent Right by Form of Ownership ................................................................ 92
Figure 46 Skill Gap by Form of Ownership ............................................................................... 93
Figure 47 Awareness of SMEDAN by Form of Ownership ....................................................... 94
Figure 48 Personal Banking Relationship of Owners ............................................................... 96
Figure 49 Sectoral Contribution of MSMEs to GDP ................................................................ 98
Figure 50 MSMEs Contribution to Agriculture GDP ................................................................. 99
Figure 51 MSMEs Contribution to Mining & Quarrying GDP ................................................... 99
Figure 52 MSMEs Contribution to Manufacturing GDP......................................................... 100
Figure 53 MSMEs Contribution to Building & Construction GDP .......................................... 101
Figure 54 MSMEs Contribution to Wholesale & Retail Trade GDP ........................................ 102

May 2012

Figure 55 MSMEs Contribution to Hotels & Restaurants GDP .............................................. 102
Figure 56 MSMEs Contribution to Transport, Storage & Communications GDP ................... 103
Figure 57 MSMEs Contribution to Financial Intermediation GDP ......................................... 104
Figure 58 MSMEs Contribution to Real Estate, Renting & Business Services GDP ................ 104
Figure 59 MSMEs Contribution to Education Sector GDP ..................................................... 105
Figure 60 MSMEs Contribution to Health & Social Work GDP .............................................. 105
Figure 61 MSMEs Contribution to Other Community, Social & Personal Services Sector GDP............................................................................................................................................... 106

Table of Tables
Table 1 Summary of the Activities on Information, Advisory Services and Sensitization at the
Head Office & Other Centres for the Year 2010 .................................................................... 114
Table 2 Distribution of Workload and Fieldstaff by Zone and State for Informal and Formal
Components of the Survey .................................................................................................... 114
Table 3 Number of Small and Medium Enterprises by State ................................................. 117
Table 4 Total Number of Small and Medium Enterprises by Sector ...................................... 118
Table 5 Number of Enterprise by State and Sector ............................................................... 119
Table 6 Initial Start-Up Capital ............................................................................................... 119
Table 7 Initial Start-Up Capital by Sector ............................................................................... 120
Table 8 Total Capital by Enterprises as at December 2010 ( national) .................................. 120
Table 9 Total Capital by State as at December 2010 ............................................................. 121
Table 10 Total Capital by Sector as at December 2010 ......................................................... 121
Table 11 Ownership Status .................................................................................................... 122
Table 12 Ownership Status by Sector .................................................................................... 123
Table 13 Gender of Owner (Sole Proprietorship) .................................................................. 123
Table 14 Age of Owner (Sole Proprietorship) ........................................................................ 124
Table 15 Highest Qualification Attained by Owner ............................................................... 124
Table 16 Initial Total Assets at Inception ............................................................................... 124

May 2012

Table 17 Total Asset Value as at December 2010 .................................................................. 125
Table 18 Source of Capital ..................................................................................................... 125
Table 19 Business Monthly Sales (Turnover) 2009 ................................................................ 125
Table 20 Business Monthly Sales (Turnover) 2010 ................................................................ 126
Table 21 Business Monthly Cost of Operation....................................................................... 126
Table 22 Promotional Media by the Enterprise ..................................................................... 126
Table 23 Business Insurance .................................................................................................. 127
Table 24 Daily Useage of Alternative Source of Power ......................................................... 128
Table 25 Employment by Sex as at Commencement of Business ......................................... 128
Table 26 Employment by Sector as at Commencement ........................................................ 129
Table 27 Employment by Sex as at December 2010 .............................................................. 130
Table 28 Employment by Sector as December 2010 ............................................................. 130
Table 29 Educational Qualification of Employees ................................................................. 131
Table 30 Market Channel of Product(s) ................................................................................. 131
Table 31 Export of Products/Services .................................................................................... 131
Table 32 Business Association ............................................................................................... 132
Table 33 Business Patent Right by Sector .............................................................................. 132
Table 34 Own Patent Right by Form of Ownership ............................................................... 133
Table 35 Registered Patent Right by Sector........................................................................... 133
Table 36 Own Patent Right by Form of Ownership ............................................................... 134
Table 37 Skills Gap by Sector ................................................................................................. 134
Table 38 Skills Gap by Form of Ownership ............................................................................ 135
Table 39 Major Government Policy That Affect Businesses Most Favourably ...................... 135
Table 40 Major Government Policy That Affect Businesses Most Unfavourably .................. 135
Table 41 Top Priority Areas of Assistance .............................................................................. 136
Table 42 Capacity Utilization in Manufacturing..................................................................... 137
Table 43 Capacity Utilization: Mining & Quarrying................................................................ 140

May 2012

Table 44 Awareness of SMEDAN ........................................................................................... 141
Table 45 Awareness of SMEDAN by State ............................................................................. 141
Table 46 Awareness of SMEDAN by Sector ........................................................................... 142
Table 47 Benefit from SMEDAN Service ................................................................................ 143
Table 48 Benefit from SMEDAN Service by States ................................................................. 143
Table 49 Ranking of SMEDAN Service .................................................................................... 144
Table 50 Rank of Problems Militate Against Enterprises Development in Nigeria ............... 144
Table 51 Measures by SMEDAN to Alleviate Problems ......................................................... 145
Table 52 Export of Product/Services...................................................................................... 145
Table 53 Value of Export by Sector (Naira) ............................................................................ 146
Table 54 Banking Relationship ............................................................................................... 146
Table 55 Business Registration .............................................................................................. 147
Table 56 Business Plan ........................................................................................................... 147
Table 57 Number of Micro Enterprises by State.................................................................... 147
Table 58 Number of Micro Enterprises by Sector.................................................................. 148
Table 59 Initial Start-Up Capital at Inception (N’000)............................................................ 149
Table 60 Initial Start-Up Capital by Sector (000).................................................................... 150
Table 61 Total Capital as at December 2010 ......................................................................... 151
Table 62 Ownership Status .................................................................................................... 151
Table 63 Ownership Status by Sector .................................................................................... 152
Table 64 Sex of Owners by Economic Sector ......................................................................... 152
Table 65 Age of Owner (sole Proprietorship) ........................................................................ 153
Table 66 Highest Qualification Attained by Owners .............................................................. 153
Table 67 Initial Total Assets at Inception ............................................................................... 154
Table 68 Source of Capital ..................................................................................................... 154
Table 69 Business Capacity Turnover 2009 ........................................................................... 155
Table 70 Business Capacity Monthly Average 2010 .............................................................. 155

May 2012

Table 71 Business Monthly Cost of Operation....................................................................... 155
Table 72 Promotional Media ................................................................................................. 156
Table 73 Business Insurance .................................................................................................. 156
Table 74 Daily Useage of Alternative Source of Power by Sector ......................................... 157
Table 75 Employment by Sector at Commencement ............................................................ 158
Table 76 Employment by Sector as at December 2010 ......................................................... 158
Table 77 Market Channel of Product ..................................................................................... 159
Table 78 Business Registration by Sector .............................................................................. 159
Table 79 Support Received from Association ........................................................................ 160
Table 80 Own Patent Right by Sector .................................................................................... 160
Table 81 Own Patent Right by Form of Ownership ............................................................... 161
Table 82 Patent Right Registered by Sector .......................................................................... 161
Table 83 Skills Gap by Sector ................................................................................................. 162
Table 84 Skills Gap by Form of Ownership ............................................................................ 162
Table 85 Major Government Policy That Affect Business Most Favourably ......................... 163
Table 86 Major Government Policy That Affect Business Most Unfavourably ..................... 163
Table 87 Top Priority of Assistance ........................................................................................ 164
Table 88 Awareness of SMEDAN by Form of Ownership ...................................................... 164
Table 89 Awareness of SMEDAN by State ............................................................................. 164
Table 90 Benefit from SMEDAN Services by State ................................................................. 165
Table 91 Benefitted from SMEDAN by Form of Ownership .................................................. 166
Table 92 Ranking of SMEDAN Services Received ................................................................... 167
Table 93 Ranking of Major Problem Militating Against Businesses in Nigeria ...................... 167
Table 94 Personal Insurance of Owners ................................................................................ 168
Table 95 Personal Banking Relationship of Owners .............................................................. 168
Table 96 Qualification Attained by Workers .......................................................................... 168
Table 97 What SMEDAN Can do to Alleviate Some of the Problems .................................... 169

May 2012

Table 98 Business Plan by Ownership.................................................................................... 169
Table 99 Membership of Association .................................................................................... 169
Table 100 Micro, Small, Medium Enterprises (MSMEs) Nominal GDP (Naira million) .......... 170
Table 101 Contribution to Each GDP Economic Activity (%).................................................. 170
Table 102 Initial Start-Up Capital at Inception (N '000) ......................................................... 171
Table 103 Personal Insurance Owners................................................................................... 171

May 2012

1

EXECUTIVE SUMMARY
The dearth and paucity of credible and reliable MSME database is one of themain constraints to evolving a strategic action plan towards an efficient andsustainable MSME sector. Consequently, SMEDAN undertook this collaborative
survey with the National Bureau of Statistics to produce this National MSME
database to aid planning and decision making.
The survey covered business enterprises in Nigeria employing below 200 persons(Micro, Small and Medium Enterprises). The survey was conducted in all the 36
States of the Federation and the Federal Capital Territory, Abuja. The pre-test was
conducted in Lagos and Kano states. For micro enterprises (employing 1-9
persons) data were canvassed through the National Integrated Survey ofHousehold (NISH) Schedule. Also rural and urban areas where small (employing
10-49 persons) and medium (employing 50-199 persons) enterprises are locatedwere covered through the National Integrated Survey of Establishment (NISE)
Module.
Thirty Enumeration Areas comprising of 3 replicates in which each replicatescontain 10 EAs were selected per state and FCT, Abuja. These replicates aresubsets of twenty (20) which each state of the Federation and FCT, Abuja had.
Ten micro enterprises were systematically selected per EA making a total of 300
micro enterprises visited in each state and FCT, Abuja. For the establishment
component, 4,000 small and medium enterprises were visited covering the twelve
selected sectors.
In view of the above, therefore, some of the findings of the survey are as follows: The total number of enterprises stood at 17,284,671 (micro-17,261,753,
small- 21,264, and medium-1,654).
 The initial start-up capital of micro enterprises were predominantly lessthan fifty thousand Naira, while small and medium enterprises werepredominantly less than ten million Naira.

12

May 2012 Lagos state has the highest number of small and medium enterprises(4,535) while Osun state has the least (100).
 Lagos state has the highest number of micro enterprises (880,805),
followed by Kano state (872,552), while FCT recorded the least (272,579).
 The main challenges confronting the operations of MSMEs in Nigeria as
revealed by the survey are access to finance and poor infrastructure.
 The total number of persons employed by the MSME sector as at
December, 2010 stood at 32,414,884.
The female entrepreneurs accounted for 42.1% in the ownership
structure of microenterprises as against 13.57% in small and medium
enterprises.

 Most of the entrepreneurs interviewed are not aware of SMEDAN and theirservices. The beneficiaries of SMEDAN Services are very minimal invirtually all the states.
 Over 70% of the entrepreneurs do not have patent right, hence theirintellectual property are not protected.
 The ownership structure by age showed that the age bracket of 24-50
dominates. Hence youth entrepreneurs are dominant.
 The three priority areas of assistance to MSMEs are access to finance,
provision of infrastructure and regular supply of power and water.
 Most of the MSMEs are not covered by any insurance policy. That is mostof them are not insured.
 The skills gap by sector showed that qualified artisans are readily available
in most of the sectors surveyed.
In terms of average capacity utilisation, most of the MSMEs are operating
below optimum capacity.

 Most of the enterprises are operating without a business plan and most ofthem do not belong to any business membership association.
 MSMEs contribution to the Nation‟s Gross Domestic Product in nominal
terms stood at 46.54% as at the period under review.
The survey recommended that a strategic action plan to address the six key
constraints confronting the sector should be put in place urgently. These
constraints are access to finance, weak infrastructure, and inconsistency ingovernment policies, lack of work place, multiple taxation and obsolete
technology.

13

May 201214

May 2012

2

INTRODUCTION

2.1

Preamble
In a developing economy like Nigeria, Micro, Small, and Medium Enterprises playtremendous role in reengineering the socio-economic landscape of the country.
These enterprises largely represent a stage in industrial transition from traditional
to modern technology. The variation in transitional nature of this process isreflected in the diversity of these enterprises. Most of the small enterprises use
simple skills and machinery as well as local raw materials and technology. Micro,
Small, and Medium Enterprises are vital in developing the Nigerian economy forthe following reasons: social and political role in local employment creation,balanced resources utilization, income generation, utilization of local technology
and raw materials and in helping to promote change in a gradual and peacefulmanner.
There is growing realization on the part of the Government that instead of thepromotion of large-scale enterprises, it should incentively promote micro, small,and medium enterprises. Until recently, the micro, small and medium enterprises
were virtually neglected in the Nigerian Economic Development Strategy. The
economic reforms being carried out by the present administration has howeverplaced greater emphasis on micro, small and medium enterprises development
through the National Policy on micro, small and medium enterprises.

The

Government is striving on the creation of an enabling and friendly environment inwhich Micro, Small and Medium Enterprises would flourish, and entrepreneurial
instincts aroused so that the entrepreneurs may get maximum output andrewards from their efforts. Radical liberalization and deregulation have been
introduced to make the Nigerian economy progressively market-oriented andintegrated with the emerging global economic structure in a sustainable manner.
In view of the above, the Government has realized the importance of this sector
as a catalyst for the growth, productivity and competitiveness of the economy. Not
only are they the seedbed for wealth creation, employment generation andpoverty reduction, they have been recognized as critical breeding and nurturing
grounds for domestic entrepreneurial capacities, technical skills, technologicalinnovativeness and managerial competencies for the development of a vibrantand productive economy.

15

May 2012

The long-term policy imperative of the country is to achieve inclusive growth. The
presentsocio-economic

development

challenges

confronting

Nigeriaisexacerbated by the changing demographic profile of the country. The number of
unemployed is on the increase, of which the proportion of the educated youth will
also continue to rise.

Therefore, the need for strong, accelerated economic

growth and development are now more acute than ever.
Nigerian‟s economic growth has been led by the service sector in the last decade,particularly, in the information technology and telecommunication. The
agricultural, agro-allied and service sectors offer huge potential for job creation.
Moreover, the importance of Micro, Small and Medium Enterprises in the growth
process is considered to be a key engine of economic growth and development in
Nigeria. Hence, the development and promotion of this sector holds the key toinclusive growth and plays a critical role in Nigeria‟s future.
2.2

Background to the Study
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
was established in 2003, to facilitate the promotion and development of theMicro, Small and Medium Enterprises (MSMEs) sector in an efficient andsustainable manner. The Agency is saddled with the responsibility of contributing
to the realisation of the Transformation Agenda of the present Administration andthe cluster development Approach of the Ministry of Trade and Investment
With the overall objective of reducing poverty through wealth and job creation andfacilitating national economic development, the Micro, Small and Medium
Enterprise are perceived as the oil required to lubricate the engine of socioeconomic transformation.

The death and paucity of credible and reliabledatabase is one of the main constraints in the development of this sub sector.
In light of the above, the need for an adequate and reliable data base for MSMEs
in Nigeria is imperative. Hence the importance of this survey, however, SMEDAN
had made concerted effort in the past to build a credible MSME database throughprivate consultants, but the result was not desirable. Due to the absence of arobust MSME database, the Agency could not adequately evolve a strategic plan

16

May 2012and programme towards vibrant and virile MSMEs that will stimulate and trigger
economic development in Nigeria.
To address these constraints, the National Bureau of Statistics (NBS) in
collaboration with the Small and Medium Enterprises Development Agency of
Nigeria (SMEDAN) conducted this National MSME Survey.The survey is to produce
a credible and reliable MSME database in Nigeria. The pretest was conducted in
Lagos and Kano states in March, 2010 through a purposeful sampling.

2.3

Objectives of the Study
The main objective of the survey is to establish a credible baseline data/databasefor the micro, small and medium enterprises (MSMEs) sector in Nigeria. Other
specific objectives are:

To determine the contribution of micro, small and medium enterprises
sector to Gross Domestic Product (GDP) in Nigeria;

To determine the number of micro, small and medium enterprises in Nigeria
by sector and by state;

To identify the main challenges and constraints confronting the operations of
MSMEs in Nigeria;

To determine the contribution of MSMEs to employment generation;

To determine the contribution of MSMEs to export;

To identify the number of MSMEs owned by Women and Men;

To identify the ownership structure of MSMEs by age;

To identify the skill gaps within the sector;

To determine the capacity utilization within the sector;To ascertain the top priority areas of intervention and assistance to thesector;

To identify the financing windows for the MSME sector for raising low costfinance.

17

May 2012

2.4

Definition
As in developed economies, Nigeria with the introduction of the National Policy on
MSMEs has addressed the issue of definition as to what constitutes micro, small
and medium enterprises. The definition adopts a classification based on dual
criteria, employment and assets (excluding land and buildings) as shown below.

S/N

Size Category

Employment

1

Micro enterprises

Less than 10

Assets (=N= Million)(excl. land and buildings)
Less than 5

2

Small enterprises

10 to 49

5 to less than 50

3Medium enterprises

50 to 199

50 to less than 500

Source: National Policy on MSMEs

Micro Enterprises are those enterprises whose total assets (excluding landand buildings) are less than Five Million Naira with a workforce notexceeding ten employees.



Small Enterprises are those enterprises whose total assets (excluding landand building) are above Five Million Naira but not exceeding Fifty Million
Naira with a total workforce of above ten, but not exceeding forty-nine
employees.

Medium Enterprises are those enterprises with total assets excluding landand building) are above Fifty Million Naira, but not exceeding Five Hundred
Million Naira with a total workforce of between 50 and 199 employees.

If there exists a conflict on classification between employment and assets criteria(for example, if an enterprise has assets worth seven million naira (N7M) but
employs 7 persons), the employment-based classification will take precedence
and the enterprise would be regarded as micro.
2.5

Relevance of MSMEs
It is evidently clear that the micro, small and medium enterprises could play acatalytic role in the economic transformation of Nigeria.

The role includes

substantial contribution of the sector to the gross domestic product, employment
generation,

18

export,increasing

local

value

additionandtechnologicalMay 2012

advancement. Other measures advanced by the advocates of micro, small andmedium enterprises development in the country include:
i.
ii.

iii.
iv.
v.
vi.
vii.
viii.

2.6

The low level of capital required in the establishment of the enterprises.
The large number of the establishment and their labour intensive modes ofoperation guarantees employment for a large number of persons (labour
intensive).
Inventions, adaptations, and general technological development arecommon in these enterprises.
A more equitable distribution of income is usually achieved in this sector.
Industrial diversification and a relatively more balanced regional
development are assured.
The evolution of indigenous enterprise is common amongst theseestablishments.
General enhancement of the tempo of industrial development is visible
among these enterprises.
Tendency among these enterprises to become feeders of large-scale
enterprises and service products made by the latter.

Structure of the Report
In order to provide credible and reliable data for appropriate policy prescriptions
to strategically reposition the MSME Sector, the report is organised into fivechapters. The introductory chapter covers the definitional overview of micro, small
and medium enterprises, the background and objectives of the survey. It also
provides an insight into the relevance of MSMEs in Nigeria. Chapter two provides
an overview of MSMEs in Nigeria, highlighting the pivotal role of SMEDAN in the
promotion and development of MSMEs in Nigeria. It also highlights the functions
and scorecard of the Agency and some country experiences in MSME
development. In chapter three, the survey examines the methodology, highlighting
the survey design, coverage and sample.
Chapter four analyses the national survey data with a view to evaluating thechallenges and constraints of the sector. The analyses are classified into two
sections - Formal Sector (Small and Medium Enterprises) and Informal Sector(Micro Enterprises). Parameters, such as number of enterprises by State andSector, Start-up Capital, Ownership Status by Sector and Gender, Age of Owners,
Contribution to Employment and Gross Domestic Product. The analyses include
the assessment of skills and the skill gaps within the sector. Membership of
Associations, Business/Personal insurance of entrepreneurs/enterprises, daily

19

May 2012assuage of alternative sources of power, market channels of product/service,business registration, ownership of patent right, major government policy that
affect business favourably and unfavourably. Area of assistance required by theentrepreneurs/enterprises, ranking of SMEDAN services received, etc.
Capacity utilization, problem militating against enterprise development in Nigeria
were also articulated in chapter four, while chapter five presents the key findings,
conclusion and policy recommendations for MSME growth and development in
Nigeria.

20

May 2012

3

OVERVIEW OF THE MSME SECTOR

3.1

Introduction
Micro, Small and Medium Enterprises (MSMEs) sector plays a pivotal role throughseveral pathways that goes beyond job creation. They are growth-supporting
sector that not only contribute significantly to improve living standards, but also
bring substantial local capital formation and achieve high level of productivity ofMicro, Small, and Medium enterprises.
In Nigeria, the history of MSMEs dated back more than six decades ago during thecolonial era in 1946 with a ten year development plan. The plan was for the thencolonial administration to lay groundwork for the welfare and development of
Nigeria. But despite the intensions, the colonial administration implicitly had
preference for large scale industries in a push for industrialization. During theperiod, trade, price, tax, and exchange rate policies as well as enabling
environment were prioritized in favour of the large firms to pave way for large
industries as catalyst for Nigeria‟s industrialization. Despite these, the large
manufacturing sector could not drive the economy. The economy was a buyer‟smarket for outside economies and seller‟s market for raw materials. Thus thepolicy of

local sourcing of raw materials were hardly pursued as a result easy

availability of cheap exchange rate to import foreign components; these situations
hampered the development of MSMEs.
The import substitution policy of the post-colonial period posted a picture that
tolled the anti MSMEs policy. It emphasised on industries that could undertake
mass production of consumer goods. In addition, credit and incentives were
granted to industries that could not go beyond first step of producing consumer
goods. To attract Foreign Direct Investment FDI, policies such as profit tax
holidays, import duty relief which allows firms to import raw designated materials
under duty free and concessional arrangements, accelerated depreciation on
capital investment and tariff protection. There were also monetary incentives suchas the establishment of financial institutions for loans and subsidies. A number offinancial institutions were drafted to oversee these arrangements such as, Nigeria
Industrial Development Bank, and Nigeria Bank for commerce and Industry.

21

May 2012

Generally, both trade and infrastructural policies favoured the large scaleindustries.
In spite of these incentives, the manufacturing sector remains in comatose. The
problem of large scale manufactures was further aggravated by the collapse of
the international oil market in the 1980s. The associated unemployment and low
capacity utilization created balance of payment problem which forced Nigerian
government to seek for a bailout from international credit institutions,International Monetary Fund and World Bank. As one of the pre-conditions andrequirements for such credit facilities, the economy embarked on Structural
Adjustment Programme (SAP). In other to drive home the policy objectives of the
SAP, an inward-looking policy that emphasises the use of local raw materials wasintroduced to encourage local producers, particularly Small and Medium
Enterprises (SMEs).
To harness the potentials of the MSMEs, the sector became particularly a focus ofattention during the era of the Structural Adjustment Programme (SAP) in 1986.
Thus, the Structural Adjustment Policy of 1986 saw the rising profile of increased
number of MSMEs. As form of encouragement, policies were adopted to use thesector as stepping stone for both job creation and industrialization. Industrial
development centres, industrial estates, World Bank assisted programmes were
put in place to encourage the sector. Various SMEs institutions were alsoestablished, small scale industrial scheme, the National Economic Reconstruction
Fund, the small and medium scale loan scheme, the people‟s bank of Nigeria,
and National Directorate of Employment were also established. These institutions
were however not sustained because they were products of political regimes andwent into extinction as soon as the regimes were brought to an end. Moreover,there were no enabling laws to formally establish MSMEs in Nigeria; as they
suffered neglects, constraint to effective development, and funds starvation.
To address the problems of access to credits and establish MSMEs as polar axis
for Nigeria‟s industrialization, Small and Medium Industry Equity Investment
Scheme (SMIEIS) was initiated by the Central Bank of Nigeria in collaboration with
Bankers Committee in June 19, 2001. This was in response to the Federal

22

May 2012

Government‟s concerns and policy measures for the promotion of Small andMedium Enterprises (SMEs) as vehicles for rapid industrialisation, sustainableeconomic development, poverty alleviation and employment generation.
Consequently, on August 21, 2001 the scheme was launched by the Obasanjo
administration. The main purpose is to salvage and develop the SME sector, byaddressing the problems of limited access to long-term credit; remove burden ofinterest rate charges; and eliminate other charges associated with normal banklendings. It requires that all banks in Nigeria develop and package viableindustries with private investors and to set aside 10% of their pre-tax profit for
equity investment in SMEs. In addition, banks are expected to provide financial,advisory, technical and managerial support for the SMIs in which they haveinvested. Ten percent (10%) of the fund set aside goes to the microfinanceenterprises. Every legal business activity is covered under the scheme (Micro,
Small and Medium Enterprises) with the exception of trading/merchandising andfinancial services.
Given the successful establishment of funding window for MSMEs, it was
imperative to take census of the size of MSMEs in Nigeria as a further step
towards having efficient funding. In addressing the problems of non-availability ofcomprehensive information on SMEs, the CBN commissioned Universities in
Nigeria to conduct a nation-wide baseline economic study of MSMEs in 2004. The
number of persons employed by the SMIs has generally risen over the years. The
number employed by small scale industries (SSI) rose from 33,843 at inception to53,686 at the time of the survey in 2004. Similarly, the number of persons
employed by medium scale industries (MSI) increased from 15,308 at inception
to 40,130 in the same period.
Several factors were found to be major hindrances to the realization of the SMI in
Nigeria. These factors include, production technology, cost structure andfinancing, entrepreneurship, firm characteristics, management structure, andmarketingstrategies,

poor

infrastructures(roads,electricity,

energy,communication, manufacturing environment); economic environment (venture
capital, fluctuating value of the Naira, etc); production inputs (raw materials,
equipment, land, energy, etc); government policies; and political considerations. It

23

May 2012is the complex interaction of these factors and variables that determines the
success or failure of both SMI operations and the attendant public policy
interventions.
The current survey is an attempt to conceptually define the size and compositionsof the MSMEs, determine the incidence of MSME, identify the problems
bedevilling the sector, and possibly identify the finance gap. Formally the size of
the MSMEs in Nigeria is estimated at about 17,284,671. The breakdown showsthat micro industries constitutes about 17,261,753 or 99.87%, the small
enterprises accounted for about 21, 264 or 0.12%, while the medium scale
enterprises is about 1, 654 or 0.01%. The size of the micro sector is relatively
large and instructive; and could be a reflection of the possibility that certain
economic conditions may have either forced small enterprises to go informal orthat more unemployed persons are engaged in informal activities.
Several factors may have led to such a huge gap between the micro enterprises
and the SMEs. The size of the SMEs firstly is directly related to the definitional
scope used. A decrease in the minimum number of employers and capital outlay
required for an enterprise to be classified as SME will increase the number ofSMEs. Secondly in Nigeria, the informal sector constitutes a very large proportionof the economy. The micro enterprises (informal) are affected by excessive
regulation, high cost of entry into formal settings, high level of unemployment, lowlevel of education attainment, poor infrastructural development, and more
importantly poverty/low income level.
Harsh economic environment, particularly, poverty and poor infrastructuraldevelopment must have affected the SMEs and micro enterprises who are therecipients of the vulnerable group from the MSMEs. The rising profile of poverty in
Nigeria could have accounted for the low size of SMEs and high size of the microenterprises – micro enterprises is the balancing sector in the equation of MSMEs.
Improvements in economic conditions reduce micro enterprises and increases
SMEs, otherwise enterprise falls from SMEs to micro enterprises. In 2004 whensimilar survey was conducted by the CBN, relative poverty stood at about 54%,
but in 2010 poverty level rose to 69%; and by the NBS projection, it is expected tofurther increase in 2011. In the same period, unemployment was about 13.4%
and has risen to 21.1% and 23.9% in 2010 and 2011 respectively. Implicitly, the24May 2012

chunk of SMEs, may have been forced to fall back to the micro enterprises, as aresult of these unfavourable economic conditions, hence the fall in the size of the
SMEs.
3.2

Recent Efforts by Government to Stimulate the MSME Sector
The Micro, Small and Medium Enterprises Sub-sector has been identified as oneof the critical elements to the achievement of the country‟s vision 20-2020. The
sub-sector has been globally acknowledged as the engine that drives the socioeconomic transformation of both the developing and developed countries. A
nurtured and well structured MSME sector contributes significantly toemployment generation, wealth creation, poverty reduction and sustainableeconomic growth and development.
Various attempts have been made by successive Government to stimulate thegrowth and development of the MSME sector in Nigeria after many years ofneglect. The call for a coordinating Agency for the MSMEs sub-sector dated backto 1987, when a study by the World Bank made the recommendation. Efforts by
the Government to actualize it failed until 2003, when the Small and Medium
Scale Industry Development Agency (Establishment) Act, enacted by the National
Assembly created the Small and Medium Industry Development Agency (SMIDA).
The National Assembly passed the SMIDA amendment bill in December, 2004.
The Act changed the name of SMIDA to the Small and Medium Enterprises
Development Agency of Nigeria (SMEDAN).
The Agency is today, the country‟s apex institution with the statutory responsibilityof facilitating the creation, resuscitation and stimulation of the growth anddevelopment of the Micro, Small and Medium Enterprises sector of the Nigerian
economy.

The establishment of SMEDAN is a giant stride by the Federal

Government in repositioning the sector and realigning it into mainstream of the
Nigerian economy.
Other recent government efforts to stimulate the sector include the following:I.

The Microfinance Policy, Regulatory and Supervisory Framework for

Nigeria.
The Government through the Central Bank of Nigeria (CBN) launched theMicrofinance Policy, Regulatory and Supervisory Framework for Nigeria in 2005.

25

May 2012

The policy provided the legal and regulatory framework for microfinance banking
in Nigeria. The objective is to create a sustainable and credible microfinancebanks capable of mobilizing and channelisating funds to the MSME sub-sector.
The policy, however, resulted in the establishment of new microfinance banks andthe conversion of some existing community banks to microfinance banks. Today,
the microfinance banks have provided the financing widow to address theinadequate access to finance confronting the micro and small enterprises in
Nigeria.
II.

The Small and Medium Enterprises Equity Investment Scheme (SMEEIS)The SMEEIS initiative was in response to the Federal Government‟s concerns andpolicy measure towards the aggressive and radical transformation of the subsector through the provision of adequate and cheaper funding. All the commercial
banks operating in Nigeria were required to set aside 10% of their profit after tax(PAT) for equity investment in small and medium enterprises in Nigeria. The
cumulative sum set aside by the banks under the scheme as at December, 2009
was #42 billion. However, the scheme did not achieve the desired impact as mostSMEs were not interested in the equity participation for fear of losing control of
their enterprises. Even then, most of them lack the 60% equity contribution which
resulted in delay disbursement as the borrowers were deemed to be
uncooperative. Also, most SMEs lack proper bankable business plan, marketingstrategy, no sound accounting systems and do not run their transactions throughthe banking system.
III.

The N200 billion Small and Medium Scale Enterprises Guarantee Scheme(SMECGS)
The scheme was established in 2010 to fast track the development of the sector,
set the pace for the industrialization of the economy and increase access to credit
by small and medium enterprises and entrepreneurs. The scheme provided
guarantees on loans by banks to the sector in order to absorb the risks that had
inhibited banks from lending to the sector. The beneficiaries of the scheme aresmall and medium enterprises with total assets not exceeding #500 million and alabour force of 11 to 300 staff. A maximum amount of #100 million would be

26

May 2012

guaranteed which could be in form of working capital, term loan for refurbishment
or equipment upgrade or expansion and overdraft.
IV.

The N200 billion SME Restructuring/Refinancing Fund

The Fund was established by the Government through the Central Bank ofNigeria. The purpose of the Fund was for re-financing or re-structuring of bank‟sexisting loan portfolios to the sector. The Fund was sourced from the #500 billion
debenture stock issued by the Bank of Industry. However, the main objective of
the Fund is to enhance access to credit by the small and medium enterprises andimprove the financial position of the commercial banks. The scheme is managed
by the Bank of Industry who disburses the Fund to the Participating banks for
restructuring of their loan portfolio.
V.

The N100 billion Cotton, Textile and Garment (CTG) Fund

The Fund was established by the Government through the Central Bank of Nigeria
for on-lending to small and medium enterprises engaged in the cotton, textile andgarment value chain. The main objective of the fund is to resuscitate, revive, andset the textile industry on the path of economic recovery, as well as bring back thelost glory of the industry in accordance with the transformation agenda of theFederal Government.
VI.

The N2 billion NERFUND Facility

The National Economic Reconstruction Fund (NERFUND) is now being
repositioned to contribute to the growth and development of the MSME sector.
The Federal Government has recently released #2 billion to the Fund for direct
lending to the MSME sub-sector. In disbursing the Fund, NERFUND signed an
MoU with SMEDAN and other principal stakeholders within the sector to channel
application with a bankable business plan from their clients to ensure adequate
outreach. The objective is to stimulate the MSMEs and realign them towards the
economic aspirations of the Government.
VII.

The N5 billion Dangote Fund for MSMEs

In their determined effort to stimulate the MSME sub-sector, the Government isentering into collaboration and partnership with the private sector. One of such27

May 2012

collaboration is the #5 billion Dangote Fund to the Bank of Industry for on-lending
to micro, small and medium enterprises in Nigeria.
VIII.

The Counterpart Funding Scheme of the Bank of Industry

The Bank of Industry has emerged with various strategies and schemes to provide
finance to the MSME sector in accordance with her mandate. One of the major
challenges facing the Nigerian MSME sector is finance. Finance is considered tobe the key driver of any organization. The bank of industry in realization of theimportance of finance to the MSMEs has provided adequate access to finance tothe sector through its various schemes, especially, their counterpart funding
scheme with the state government. Some state governments have provided one
billion Naira to the bank for on-lending to micro, small and medium enterprises insuch state. The Bank will then match such fund with additional one billion Naira.
The scheme has gone a long way in solving the challenge of adequate financeconfronting many MSMES in the various states.
IX.

The Youth Enterprise with Innovation in Nigeria (You Win) Programme

The Youth Enterprise with Innovation in Nigeria (You WiN!) Programme is acollaboration of the Ministry of Finance, the Ministry of Communication
Technology (CT), and the Ministry of Youth Development that launched an annual
Business Plan Competition (BPC) for aspiring young entrepreneurs in Nigeria, inline with the Federal Government‟s drive to create more jobs for Nigerians. The
programme is been implemented in partnership with Nigeria‟s private sector, whoare be requested to provide the funding support. The main objective of the YouthEnterprise with Innovation in Nigeria (You WiN!) Programme is to generate jobs byencouraging and supporting aspiring entrepreneurial youth in Nigeria to develop
and execute business ideas that will lead to job creation. The programme will
provide aspiring youth with a platform to show case their business acumen, skills
and aspirations to business leaders, investors and mentors in Nigeria. SMEDAN is
the monitoring Agency of the programme. The rationale is to stimulate the MSME
sector in accordance with the present administration‟s economic aspirations in
employment generation.
X.

28

Train to Work (TRATOW) Initiative

May 2012

The TRATOW Initiative of the Federal Ministry of Trade and Investment is targetedat equipping young Nigerians with the skills required to establish and manage
their small businesses. The MSME sub-sector has been experiencing some skill
gaps necessary to grow the sector. This initiative will close such gaps and lead tothe establishment of new enterprises and the expansion of existing ones. The
required vocational, entrepreneurial and managerial skills have been provided. It
must be emphasized that many MSMEs lack proper management capabilities andtechnical and managerial deficits are the main factors militating against thegrowth and development of MSMEs in Nigeria.
XI.

Campaign for Patronage of Made-in-Nigeria Products

The buy made in Nigeria Products Initiative of the Federal Government is anotherlaudable scheme to stimulate the MSME sector. The campaign has provided
adequate market for made in Nigeria products. The initiative has led to themarket and marketing of the products/services of the sector through renewed
vigor and aggressive strategy in the packaging and quality of the products. It has
provided access to market by enhancing the turnover of the MSMEs and making
them more competitive.

3.3

The Small and Medium Enterprises Development Agency of Nigeria(SMEDAN) Introduction
In its continued search for solutions towards a vibrant and virile micro, small, andmedium enterprises sector, and to entrench the sector into the main stream of
the Nigerian economy, the Small and Medium Enterprises Development Agency of
Nigeria (SMEDAN) was established in 2003. The Agency is a “one stop shop” fornursing and nurturing micro, small, and medium enterprises in Nigeria.
Consequently, the Small and Medium Enterprises Development Agency of Nigeria(SMEDAN) has since inception been in the forefront of developing and promoting
Micro, Small and Medium enterprises and entrepreneurs in Nigeria.
The mission of SMEDAN is “to facilitate the access of micro, small, and medium
entrepreneurs/investors to all resources required for their development.”

29

May 2012

The vision of SMEDAN is “to establish a structured and efficient micro, small, andmedium enterprises sector that will enhance sustainable economic developmentof Nigeria.”
The Functions of SMEDAN
The functions of the Agency as enunciated in the SMIDA Act, 2003 are listed below:
1. Initiating and articulating policy ideas for micro, small, and medium enterprises
growth and development;
2. Stimulating, Monitoring and Coordinating the development of the MSMEs sector;
3. Promoting and facilitating development programmes, instruments and support
services to accelerate the development and modernization of MSMEs;
4. Serving as a vanguard for rural industrialization, poverty reduction, and job
creation and thus facilitating enhanced sustainable livelihoods;
5. Linking MSMES to internal and external sources of finance, appropriatetechnology, technical skills as well as to large enterprises;
6. Overseeing monitoring and coordinating the development of the MSMEs sector;
7. Promoting and providing access to industrial infrastructure, such as layouts
incubators and industrial parks;
8.

Providing assistance to MSMEs in marketing their products.

9. Mobilizing internal and external resources, including technical assistance, for thedevelopment of MSMEs;
10. Promoting the familiarization, sub-contracting, networking, and crosscutting
strategic linkages between MSMEs and other economic sub-sectors;
11. Creating beneficial linkages between MSMEs and research institutes/universities;
12. Providing extension services to MSMEs;
13. Monitoring implementation of government directives, incentives and facilities for
MSMEs development;
14. Recommending to government required amendments to business regulatory
frameworks for ease of enterprise development.

15. Working in concert with other institutions in both public and private
sectors to create a good enabling environment of business in general, andMSMEs activities in particular

3.4

THE ROLE OF SMEDAN- INTERVENTION AND STRATEGY
Conscious of her mandate and the strategic position she occupies in fostering aviable and vibrant MSMEs in Nigeria. SMEDAN is collaborating and partnering

30

May 2012

with the various States and Chambers of commerce in the realization of theirgoals and objectives. SMEDAN‟s intervention strategies centre on the following
areas:
I. Sourcing, Processing and Disseminating Business Information by creating andregularly updating the Agency‟s databank on MSMEs, raw materials, markets,
available local technologies/machinery, and prototypes.
II. Policy Development
Formulate and ensure due approval and implementation of an MSMEs policy
for Nigeria, conduct impact assessment studies and use same to recommend
improvements in policy intervention and conduct regular stakeholders‟ fora.
III. Establish Business Support Centres and Business Information Services (BSCsand BICs)
The centres provide the following services: Model business-planning skills
 Mentoring professional services such as Accounting, Financing and BookKeeping Industrial Dynamics and Technology Assessment
 Legal and taxation advisory services
 Demonstration models to private sector service providers
 General business consultation
IV. Capacity Building and Promotional Services


Vertical linkage of MSMEs with large enterprisesOrganisation of MSMEs into clusters and co-operatives to enhance theirproductivity and have easier access to factors of production,



Arrangement/facilitation of trade and technology expositionProvision of market support information systemEncouragement and facilitation of new investments in designated priority
areas in each state of the federation

V. Encourage Establishment of Industrial Parks
SMEDAN, through public-private partnership and public-public partnership, isfacilitating the establishment of Industrial Parks and Regional MSMEs
Development Centres. Each park comes with industrial buildings, and offers

31

May 2012

MSMEs common facilities on a cost-sharing basis- security, electricity, water,
buying centres, service providers, petrol station, and capital-intensive
technologies.
VI. Enhance MSMEs Access to Finance
Liaise with financial institutions to harness and pool resources for utilization
by MSMEs. Assisting in sharpening their business plans for possible financial
assistance from Micro-finance banks and development banks. Constantly
liaise with other institutions for the establishment and operation of MSMEs
Credit Guarantee Scheme.
VII. Networking
We are collaborating with Trade Groups, NGOs, Government Ministries andAgencies, Research and Technological Institutions and Multilateral/Donor
Agencies etc to create a dynamic network of stakeholders in the developmentof MSMEs sub-sector of the economy. The Agency‟s continued talks on anumber of strategic partnerships with both private and public sector
institutions to advance the course of MSMEs in Nigeria.
VIII. The National Policy on Micro, Small and Medium Enterprises.
In view of the critical importance of an MSME national policy to thesustainable development of the MSME sub-sector, the Agency in partnershipwith UNIDO have developed a National Policy on MSMEs geared towards thedevelopment of MSMEs in Nigeria in a structured and efficient manner.
IX.

Inculcating

Entrepreneurship

Education

through

Entrepreneurship

Development Programmes (EDPs)
The Agency have trained many Entrepreneurs in our various EDPs tailored
towards the required needs of the beneficiaries. The Programmes include thefollowing: General Entrepreneurship Development Programme (GEDP).
This programme exposes potential entrepreneurs to the rudiments ofstarting and managing their business enterprises. The programme has thepotential of training and facilitating the establishment of new businesses
and the expansion of existing enterprises.
 Youth Entrepreneurship Development Programme (YEDP)The programme is targeted at the youth, which constitute the major part ofthe population. This programme can train and facilitate the establishment

32

May 2012of youth owned enterprises.

The Agency supports the formation ofentrepreneurship clubs in primary, secondary and tertiary institutions.
 Women Entrepreneurship Development Programme (WEDP)
This is a gender based programme aimed at transforming the Women into
successful entrepreneurs. The programme seeks to economically empower
the Nigerian Women through conscious engagement and development ofentrepreneurial capacities. Over the years, SMEDAN has assisted in theeconomic empowerment of women. Today, we have many businessenterprises owned and managed by women.
 Youth Entrepreneurship Development Programme (YEDP)The programme is targeted at fresh school leavers. Entrepreneurshiplectures are organized to prepare them towards business ownership andmanagement. The participants are expected to prepare and submit
business plans at the end of the training programme. The business plans
are sent to micro-finance banks for financial assistance.
 Rural Enterprise Development Initiative (REDI)
This programme is aimed at stimulating entrepreneurship/enterprisedevelopment in the rural communities. The rural areas have in abundantnatural resources that can generate employment, create wealth andreduce poverty. The Agency is committed in re-engineering rural economictransformation through this programme. It is a cluster based support
programmes that provide the capacity towards business ownership andmanagement. Through this programme, the Agency encourages andnudges them into Cooperative Societies and Self-Help Groups and assists
them with registration, business plan preparation and access to finance.
 Cluster Development
SMEDAN embarked on the strategic action of developing enterprises
clusters at different parts of the country. The rationale behind it is thatworking with MSMEs located within a cluster allows the Agency to impact
on a larger group of entrepreneurs towards increased competitiveness. To
this end, the Agency commenced Business Development Service with theclusters and assist in the provision of common facility centres.
The list of Clusters SMEDAN had identified and impacted on are:
1. Cane weavers in Lagos

33

May 2012

2. Fish and Irrigation farmers Alao in Borno State
3. Cat fish in Calabar
4. Cassava cluster in Taraba State
5. Ginger in Kwoi Local Gov‟t in Kaduna
6. Shea butter cluster in Agbaeku-eji
7. Black soap cluster in Osun State
8. Aba leather cluster in Aba
9. Women Mat weavers in Ekiti State
10. Abakaliki rice cluster in Ebonyi State
X. Seminars, Conferences and Workshops
We have over the years organized seminars, conferences, and workshops tosensitize the public towards being their own bosses as well as inculcating thespirit and culture of entrepreneurialism among the students, youths, and women.
XI. Trade Fairs and Trade Exhibitions
We have since inception organized various MSMEs trade fairs and exhibitions tocreate markets for micro and small businesses in Nigeria.

3.5

SMEDAN’s Scorecard

3.5.1

Information, Training, Advisory Services and Business Sensitization

The Agency provided information on raw materials, machinery, general business,
advisory services, business sensitization, access to finance, markets andbusiness counselling through our offices and consultants to a total of 29,993
prospective MSMEs in 2010 (see Table 1). Analysis of quarterly activities is as
specified below.
Information dissemination was through prints & electronic devices such as The AZ of Doing Business, What can SMEDAN do for you, SMEDAN at a glance,
Information on SMEDAN‟S Business Support and Business Information Centres,
How to Start a Small Business, and Answers to frequently asked questions (FAQs)
regarding starting and Running a Business etc. Distribution channels include theBusiness Support Centres (BSCs), Business Information Centres (BICs), Head

34

May 2012

Office front desk and business clinic sessions, meetings, conferences, workshops,
high traffic points such as trade fairs, public institutions, etc.
To date, SMEDAN has a total of 15 Business Support Centres (BSCs) and 37
Business Information Centres (BICs) and we have opened Zonal Offices in the 6geo-political zones to oversee activities in the states under their Jurisdiction. The
BSCs and BICs are institutional channels for delivering SMEDAN services for
growth of small businesses in Nigeria. In addition, We have equipped the Zonal
Offices to effectively oversee activities of Business Support Centres (BSCs),
Business Information Centres (BICs) and Industrial Development Centres (IDCs)
for effective service delivery to MSMEs. The zonal offices are located in the 6 Geopolitical zones as follows:
Lokoja (Kogi State)
Bauchi (Bauchi State)

3.6

North Central
North East

Kano (Kano State)

North West

Yenegoa (Bayelsa State)

South South

Enugu (Enugu State)

South East

Lagos (Lagos State)

South West

Entrepreneurship Development and Education in our Educational
SystemToday‟s education should be predicated on the philosophy of creating jobs, i.e.
transforming the students from job seekers to job creators. The cardinal objective
should be the creation and management of new enterprises. The Agency
spearheaded the campaign to ensure that entrepreneurship education is given a
pride of place in our educational system. The Agency collaborated with the
National Universities Commission (NUC), National Board for Technical Education(NBTE) and the Federal Ministry of Education to promote the inclusion ofentrepreneurship in the curriculum of the nation‟s secondary schools and tertiary
institutions in Nigeria. The Agency has visited many Schools and tertiary
institutions to sensitize them on business ownership and management. The
objective is to inculcate entrepreneurialism into them and changing their mindset.

35

May 2012

3.7

Business Development Services (BDS)

3.7.1

ONESIMUS Project

Under the Faith–based Initiative, the Agency intensified its efforts to promote
entrepreneurial activities amongst members of various religious groups throughprovision of entrepreneurship awareness for existing/ prospective entrepreneurs.
The Agency trained prison inmates via the collaboration with the Prisons
Fellowship of Nigeria, Covenant University and the Nigerian Prison Service for the
training of prison inmates on entrepreneurship under the „Onesimus project‟.
Within the year, the Agency, under the prisons partnership, trained 23 prison
inmates in the kirikiri, Apapa-Lagos prisons and 35 prison inmates in the Keffi,
Nasarawa State prisons. The aim of the programme is to empower the inmates tostart their own small businesses.
3.7.2

Corpers’ Entrepreneurship Development Programme (CEDP)

The Agency undertook the sensitization of youth corps members at 23 orientation
camps within the 6 geo-political zones in the country. 4,000 corps members were
impacted in 2010. The event was aimed at inculcating the spirit ofentrepreneurship in the corps members preparatory to a full-fledged capacity
building which will empower the corps members to start their own small
businesses.
3.7.3

Rural Women Enterprise Development Programmes

Despite the huge economic potentials in Nigeria, the rural women are faced withoverwhelming challenges that militate against their realization of these hugelatent potentials. The exploration and exploitation of these huge latent potentials
is the objective of this programme. It is structured to empower the rural women interms of her socio-economic potentials. The initiative, championed by the Office of
the First Lady of Nigeria and driven by SMEDAN has been escalated to cover theentire 36 States of Nigeria with possible assistance/partnership from the WorldBank and other reputable international Development Partners. In an attempt torightly position the rural women to take full advantage of the intervention,
SMEDAN has trained rural women groups in twelve (12) pilot States.

36

May 2012

Towards ensuring an inclusive and sustainable program implementation, theAgency is working with eight (8) other MDAs i.e Standards Organization of Nigeria(SON), Nigeria Export Promotion Council (NEPC), Bank of Agriculture, National
Office for Technology Acquisition and Promotion (NOTAP), National Agency for
Science and Engineering Infrastructure (NASENI), Nigeria Export-Import Bank(NEXIM), Raw Material Research and Development Council (RMRDC) and National
Agency for Food and Drug Administration and Control (NAFDAC) .
3.8

Entrepreneurship Training Programmes (EDPs)

3.8.1

Capacity building

The Agency trained a total of 78,480 existing business owners and start-ups in2010 under its various Entrepreneurship Development Programmes (EDPs) suchas General EDP, Youth EDP, Corper‟s EDP (NYSC/SMEDAN/MDG), Women EDP,
and other Enterprise Support Services (Training the Trainers). The training was
conducted in conjunction with some partnering institutions. These programmes
were run at various locations across the 36 States of the Federation. At the end of
the training, the business will be expected to be grouped into cooperative society
and post training will include packaging the enterprises for BOI loans. The
Entrepreneurship Development Programme is necessary to encourage enterprisedevelopment in the country, which in turn is expected to trigger entrepreneurial
activities among groups and individuals to improve and sharpen their businessskills. This will ultimately provide employment for the nation‟s growing population.

3.9

Barry University, Miami, Florida/Africa-Diaspora Partnership
Empowerment & Development (ADPED)/SMEDAN Partnershipfor

The US State Department under its Young Entrepreneurs Programme Partneredwith Barry University‟s Andreas School of Business, Africa Diaspora Partnershipfor Empowerment and Development (ADPED) and SMEDAN to run a Nigeria Youth
Entrepreneurship Program with the theme: “Connecting People, Creating
understanding”. The program, aimed at training 20 young existing and potential
entrepreneurs after participating in an intensive boot camp in Abuja, was toengender entrepreneurship and business development training to young
Nigerians between the ages of 22-35 years. It also sought to promote
entrepreneurial thinking, job creation, and business planning and management

37

May 2012

skills for emerging young professionals. The training programme for the 20 young
Nigerians was undertaken at the Barry University, Miami, Florida between 11th
November, 2010 and 8th December, 2010. Within the period under review,
based on request, 15 of the 20 young people trained have received funding fromthe National Economic Reconstruction Fund (NERFUND) and have started theirvarious businesses.
3.9.1

SMEDAN/International Organization for Migration (IOM) partnership

Under this partnership, the Agency trained 44 voluntary returnees in Benin inorder to empower them to start their own small businesses. These returnees havesince started their businesses.
3.9.2

SMEDAN/Global HIV/AIDS Initiative Nigeria (GHAIN) partnership

Under this partnership, the Agency trained 53 care givers in Abuja and 68 caregivers in Sokoto. The aim of the training programme is to build the capacity of
individuals so that they would be in the position to effectively take care of people
living with HIV/AIDS.
3.9.3

SMEDAN/United Nations High Commission for Refugees (UNHCR)/NigerianCommission for Refugees (NCFR) partnership

The agency facilitated entrepreneurship training in collaboration with the UNHCR& NCFR targeted at refugees at camps located in Lagos and Ijebu-Ode. 70
refugees were trained in Ijebu-Ode while 68 refugees were trained in Lagos.
3.9.4

SMEDAN/WIDOWS Initiative

Under this initiative, the Agency trained a total of 32 widows in entrepreneurshipin Abuja while 13 widows and 9 widows out of this number were trained in poultry
keeping and soap making respectively. Within this period, a total of 225 widows
were sensitized in Abakaliki, Ebonyi State on entrepreneurship and small
business management.
3.9.5

SMEDAN/NDLEA partnership

Within this period, the Agency sensitized 35 people from the NDLEA rehabilitation
centre in Bauchi under the partnership.

38

May 2012

3.9.6

Faith Based Initiative (FBI)

Religion is a powerful mobiliser of men and women and having identified this, afaith based initiative was conceptualized by the Agency so as to trigger andstimulate entrepreneurial activities among the various religion groups in the
country. Under this initiative, the Agency has sensitized and trained over 25,880
members of various Faiths including Muslims and Christians. Many of them havestarted their businesses.
3.9.7

SMEDAN/CBN/NDIC/CIBN/Micro Finance Certification Programme (MCP)

Access to finance is a major challenge confronting the operators of the MSMEs.
Towards bridging this gap, the Central bank of Nigeria introduced the MicroFinance Policy that guided the establishment of MFBs across the country. As aresult of the several hiccups encountered in the operation of the MFBs, there was
the obvious need for the capacity building of the operators of the MFBs. This is toenable them understand the workings of the MFBs and even the clients they are
to serve. In continuation of the Microfinance Certification Programme (MCP), aspart of the overall Microfinance Development Strategy for Nigeria, the CBNapproved the commencement of the second level of the training from September
5th - 16th, 2011. The training programme was facilitated by SMEDAN as theMicrofinance Training Service Provider (MTSP).
The objective of the certification programme is to continue to build a sustainableskilled labour force for the microfinance sub-sector through the certification ofoperators and non-executive directors of microfinance banks in Nigeria. A total of
40 persons participated in the programme.
3.9.8

SMEDAN/RUFIN Partnership

A four day entrepreneurship training programme was structured and implemented
for rural SMEs by Rural Finance Institution Building Programme (RUFIN) and Smalland Medium Enterprise Development of Nigeria (SMEDAN) at 12 states: Benue,
Nasarawa, Edo, Anambra, Lagos, Oyo, Imo, Akwa Ibom, Bauch, Zamfara,
Adamawa and Kastina States.

Three Local Governments in each state wasselected for impact with a class size of 40 persons who were representing 20
already existing cooperative groups. This programme was based on the initiativeof International Fund for Agricultural Development (IFAD) to outsource the39

May 2012

entrepreneurial component of the RUFIN programme to relevant organizations
with the competence to implement its content.
The objective of the training was to sharpen/deepen the knowledge base of its
participants to the realities of how to maximize opportunity and to start/manage
business successfully. The target sectors were women groups, youth groups, mengroups and the physically challenged that are already doing one business oranother.
A minimum of 1,440 persons have been impacted with capacity building inentrepreneurship who are leaders or core representative of cooperatives thatexist in their different localities who are already doing one business or the other.
3.10

Enterprise Linkages, Cooperation & Clustering
Realising the principal role of enterprise linkages, cooperation & clustering, theAgency commenced the identification of Agro and non-Agro allied clusters aroundthe country. This renewed focus has brought a wide range of benefits to MSMEs,
such as:

Increased access to business development services;
Realization of potentials for economies of scale and improved information
flows;
Improved access to finance and other pertinent resource/ export services.

Other potential areas of benefit the Agency foresees are:
 Pooled sourcing of raw materials;
 Equipment sharing; Deeper inter-firm learning and co-operation;
 Linkages of complementary skills to bid for work that would have been
beyond their reach as individual units;
The Agency is also perfecting interventions aimed at moving clusters that havebenefited from capacity enhancement to address the other identified gaps.
Working with NERFUND and Bank of Industry, such interventions have included
access to finance to expand and/or create new businesses, credit to acquirecommon facilities, and encouraging them to form Cooperatives/Associations
where none previously existed. The above-mentioned services are available andon-going to Rice, Cassava, Catfish, Leather, Machine Fabricators Automobile,40

May 2012

Waste-to-Wealth, Garment, Tie and Dye, Shea butters, Cane Weavers, and Raffia
clusters.
3.11

Advocacy and Operating Environment
The Agency, as the voice of the MSMES in Nigeria, continued its advocacy onbehalf of MSMEs. Notable activities during the period under review werecollaboration between the Agency and the National Economic Reconstruction
Fund (NERFUND), BOI, Central Bank of Nigeria (CBN), and the Nigeria ResearchInstitute for Chemical Technology (NARICT) Zaria, and other stakeholders to
explore partnership possibilities in order to advance the course of MSMEs in
Nigeria.
The Agency also worked and contributed to the work of different Committees
constituted by the Federal Government for the improvement of MSMEs sector
namely:

Financial System Strategy (FSS) 2020Inter Ministerial Committee of the 7th D-8 Summit held in Nigeria

Technical Committee on MSME Data Survey: collaboration with National
Bureau of Statistics (NBS).

3.12



Presidential Committee on AmnestyCampaign for patronage of Made- In- Nigeria Products

Access to Finance
Aside the collaboration with NERFUND and Bank of Industry (BOI) alreadydiscussed (see Enterprise Linkages, Cooperation & Clustering above), the Agency
has continued to refer several interested MSMEs with bankable business plans tothese financial institutions for finance.
Within the period under review, the Agency reviewed about 500 business plans
submitted by various existing & potential entrepreneurs and forwarded same to
Bank of Industry (BOI) and the National Economic Reconstruction Fund
(NERFUND) for the provision of finance.
The Agency also worked with the office of the Special Assistant to Vice President
on SMEs to involve all Stakeholders in the review of the National Credit Guarantee
Scheme draft document for MSMEs.

41

May 2012

3.13

National Policy on MSMEs
SMEDAN has produced a National Policy for the MSME sector. The thrust of the
National Policy is to provide an enabling environment for micro, small, andmedium enterprises to grow and increase competitiveness on both local andglobal markets. This is anchored around a number of key principles, namely:
policy regulation, credit and complementary financial services, information andbusinessdevelopment

services,

marketdevelopment,

ResearchandDevelopment, legal and regulatory issues.
The Agency embarked on stakeholders‟ retreat on the review of the Policy within
the six (6) geo-political zones for the purpose of gathering stakeholders‟ input into
the review process. The retreats were well attended and were held as follows:South East (Enugu)
North East (Bauchi)
North Central (Minna)
North West (Kano) South West (Lagos)
 South South (Port Harcourt)
The inputs of the stakeholders will be subjected to validation workshops acrossthe geo-political zones within the first quarter of 2012. Final draft will be
forwarded to the Honourable Minister for further polishing and processing.
3.14

Conversion of the IDCs to Clusters
Consequent upon the handing over of the Twenty Four (24)Industrial

Development Centres (IDCs) to the Agency and the Federal Ministry of Trade andInvestment directive that they should be made functional on a sustainable basis
for the benefit of MSMEs and emergence of viable clusters. A Project Delivery
Team (PDT) was constituted on 21st February, 2011. The constitution of the PDT
is part of the effort to convert the Industrial Development Centres into World Class
Cluster Parks through Public – Private Partnership. The membership of the PDT
includes:
i.
ii.
iii.

42

Federal Ministry of Trade and Investment
Small & Medium Enterprises Development Agency of Nigeria(SMEDAN)Infrastructure Concession and Regulatory Commission (ICRC)

May 2012

iv.

Raw Materials Research and Development Council (RMRDC)

A Steering Committee had been constituted to provide policy guidelines andgeneral direction to the Project Delivery Team. Membership of the Steering
Committee shall include; SME Department of the Vice – President Office, Federal
Ministry of Commerce and Industry, Nigeria Export Import(NEXIM) Bank, Raw
Materials Research and Development Council(RMRDC), Bank of Industry(BoI),
Manufacturers Association of Nigeria(MAN) and representatives ofBusiness

Membership Organizations(BMOs).
The project Delivery Team, recently conducted assessment visits to the IDCs.
Based on the outcome of the exercise, the Agency in collaboration with theInfrastructure Concession Regulatory Commission (ICRC) shall engage theservices of reputable Consultants to function as Outline Business Case (OBC)
Advisors for the Industrial Development Centres in order to determine theirrespective viability. The IDCs locations being considered are as follows:
i.
ii.
iii.
iv.
v.
vi.

Idu, FCT – Abuja
Zaria, Kaduna State
Bauchi, Bauch State
Oshogbo, Osun State
Owerri, Imo StatePort – Harcourt, Rivers State

3.14.1 Job creation through access to credit: Collaboration with Bank of Industry(BOI) on Osun East Senatorial District Micro Credit Scheme

The Agency entered into partnership (via a Memorandum of Understanding) with
the Bank of Industry (BOI) for the implementation of the N50 million Osun East
Senatorial District Constituency Micro Credit Scheme Project in 2010. The
scheme was designed to develop SMEs using Cooperative Society structures
through Micro Credit Revolving Scheme. The disbursement of the loans is usually
preceded by entrepreneurship training. Within the period under review, 10 (ten)cooperative societies benefited from this scheme at the rate of between N3
million and N5 million per society. Indeed, some of the cooperative societies havestarted repaying the loan. As a follow-up to this initiative, the Agency has written
to all distinguished Senators and Honourable Members of the House of43

May 2012

Representatives requesting them to utilize their constituency projects towards
developing the MSMEs sector along this platform.

3.14.2 SMEDAN/Students for the Advancement of Global Entrepreneurship (SAGE)
partnership

The Agency co-sponsored and provided training for the participation of ZamaniInternational College, Kaduna and Junior Secondary School, Jikwoyi, Abuja at the
SAGE world competition held in New York, USA between July 22-26, 2011. The
two schools won the first position in two different categories.
3.15

Collaboration with Japan International Cooperation Agency (JICA) on
One Local Government One Product (OLOP) Programme:
The One local Government One Product (OLOP) is collaboration between theFederal Government of Nigeria (represented by the Federal Ministry of Trade andInvestment) and the Japanese Government through Japanese International
Cooperation Agency (JICA). The primary objective of the initiative is to provide
policy options and institutional framework for implementing the OLOP programmein Nigeria in order to revitalize rural communities through the development oflocal businesses. The programme is targeting the development of selected agro
and allied products along cluster lines. The Pilot Projects had been implemented
in Kano and Niger states. Three clusters among three products were developed ineach of the two pilot states. The products are rice, leather and groundnut oil for
Kano State while yam, Shea butter and groundnut oil are for Niger State. The pilot
draft final report (DFR) had been presented to stakeholders at a seminar held in
October 2011. The final report is expected to be presented by the Japan
International Cooperation Agency (JICA) before the year runs out. Consultation has
continued with all States and Local Governments to tidy up for the full blown
proposal/scheme to be flagged off at a date agreed for national implementation.

3.16

Implementation of the Sub-Contracting and Partnership Exchange(SPX): a SMEDAN/UNIDO Collaboration
The Agency signed a Memorandum of Understanding (MOU) with the United
Nations Industrial Development Programme (UNIDO) on the Sub-Contracting andPartnership Exchange (SPX) Programme. The Programme is a unique enterpriseslinkage tool by UNIDO for promoting investments, sub-contracting, out-sourcing

44May 2012and match making for products and enterprises in the MSME sector. It links the
MSME sub-sector in a host country to a credible global database of manufacturingconcerns that is beneficial to both manufacturers and buyers of goods both within
and outside the country. UNIDO is to provide technical assistance while theAgency provides office space, furniture and human resources. In line with this, theBusiness Support Centre (BSC) Matori, Lagos is hosting the SPX Project. UNIDO
commenced the Nigeria investor Survey which will feed into the overall Africa
Investor Survey and provide the parameters for the operations of the SPX
programme. The programme commenced with the capacity building of SPX staff.
The Agency has concluded the profiling of companies in Lagos and the pilot run
will start early in the New Year.
3.17

Collaboration with Ondo State Government on Akure IDC:
The Agency is collaborating with the Ondo State Government on the Industrial
Development Centre (IDC), Akure. A Memorandum of Understanding (MOU) was
signed between the Agency and Ondo State Government for this purpose. During
the period under review, the State Government reactivated the existing machines
and even went ahead to buy new machines/equipment. The various workshops
were renovated for the intake of a new set of trainees into the various trades. The
vocational skills training were complemented by the delivery of entrepreneurshiptraining. The Agency intends to use this partnership to showcase the efficacy of
public-public-partnership (PPP) in the resuscitation and management of public
infrastructure for the development of the MSMEs sub-sector and its resultant job
creation capacity in Nigeria.

3.18Peter Akinola Foundation Collaboration:
The Agency is into collaboration with Peter Akinola Foundation on the upgrading
and use of the Industrial Development Center (IDC), Abeokuta. We arrived at amajor conclusion for the two parties to enter into a Memorandum ofUnderstanding (MOU). The MOU has been signed and renovation work is on-goingat the instance of Peter Akinola Foundation. Training is expected to start in the 1 stquarter of 2012.

45

May 2012

3.19

Industrial Project Profile on Sachet Water Production
The Agency has been working on developing an Industrial Project Profile onsachet water production. During the period under review, the Agency obtained
field data and completed the draft Industrial Project Profile, ready for presentation
for dissemination to prospective investors.
The existence of SMEDAN is to prepare and equip the Nigerian Entrepreneurs oftoday-and tomorrow- to meet the challenges and complex demands associatedwith the global dynamics and business environment. The significant way ofachieving this is through the stimulation and facilitation of the development ofMicro, Small and Medium Enterprises in Nigeria.

3.20

Some Country Experiences in MSME Development
In this section, the study reviews MSMEs in some economies; with emphasis on
some emerging market economies that are examples of complete success story
in industrial revolution. Not only are these countries a benchmark for Nigeria‟s
economic development drive, but have strong trade relations with Nigeria - asituation that has implication for the vision 20:2020 policy agenda.

3.20.1 China

In China, MSMEs account for 60% of industrial output, 55% of its GDP and 75% of
employment. The most remarkable aspect of China's small and medium
enterprises is their rapid growth despite their inability to tap the official financial
system. Two factors predispose even faster development in the near term. One istheir suitability for the post-WTO accession economy. MSMEs in China willcontinue to thrive as more responsive partners of foreign companies than large
state firms. They will also have the opportunity to move into market segments
once dominated by state firms. The other factor is that the policy environment for
MSMEs appears to be improving steadily. The MSME Promotion Law will help,
especially if it leads to better access to bank lending, as would improvement, inand expansion of the credit guarantee system. An important indicator to will bewhether the 16th Party Congress builds on the progress made at the previous two
Congresses in fostering an ideological framework conducive to MSMEs.

46

May 2012

An MSME promotion law has been instituted codifying the official definition of
SMEs and clarifying what support government will be making available to themand in the 1990s the Government created a network of credit guarantee agencies
for MSMEs which ensures loan repayment to banks and assisting them in relaxing
their financial constraints.

3.20.2 India

India has one of the most successful and well developed MSMEs in the world, andheadquarters of World Association for Small and Medium Enterprises (WASME).
There are three important phases that characterised the development of theMicro, Small and Medium enterprises in India. The first phase was the periods
1948 to 19991; second phase the periods 1991 to 2006; and the third phasethe periods from 2006 till date.
The periods 1948 to 1991 provided the supportive measures that nurtured thesustenance and future growth of MSMEs, in the form of reservation of items fortheir exclusive manufacture, access to bank credit on priority through the Priority
Sector Lending Programme of commercial banks, excise exemption, reservation
under the Government Purchase Programme and 15% price preference inpurchases, infrastructure development and establishment of institutes forentrepreneurial and skill development. MSME – Development Institutes [earlier
known as Small Industries Service Institute (SISI)] were set up all over India to
train youth in skills/entrepreneurship. Tool Rooms were established with German
and Danish assistance for providing technical services essential to MSEs as also
for skill training. At the State level, District Industries Centres were set up all overthe country.
In all the policy resolution within these periods, recognition was given to the
MSMEs, termed as an effective tool to expand employment opportunities, ensure
equitable distribution of national income and facilitate effective mobilization ofprivate sector resources of capital and skill. Thus, to ensure the growth andsustenance of the scheme the Micro, Small and Medium Enterprises
Development Organisation [earlier known as Small Industries Development
Organization (SIDO)] was set up in 1954 as an apex body for sustained and47

May 2012

organised growth of micro, small and medium enterprises. Many of the older
restrictions on business ownership were removed and fewer clearances are now
required for foreign partnership and direct investment.
In the second phase, government introduced a new Policy for Small, Tiny andVillage Enterprises in August, 1991. The policy laid the framework that replaced
protection of the sector with competitiveness so as to infuse more vitality andgrowth to MSEs in the face of foreign competition and open market. Supportive
measures concentrated on improving infrastructure, technology and quality.
Testing Centres were set up for quality certification and new Tool Rooms as wellasSub-contracting

Exchanges

wereestablished.

The

Small

Industries

Development Bank of India (SIDBI) and a Technology Development andModernisation Fund were also created to accelerate finance and technicalservices to the sector. A Delayed Payment Act was enacted to facilitate prompt
payment of dues to MSEs and an Industrial Infrastructure Development (IID)
scheme was launched to set mini industrial estates for small industries. 1999
onwards: The Ministry of MSME [formerly known as Ministry of Small Scale
Industries and Agro & Rural Industries (SSI & ARI)] was established in 1999 toprovide the needed attention for the development and promotion of the sector.
To address the challenges of finance (particularly access to credit), infrastructure,technology and marketing, a new policy package was introduced in August 2000.
Two credit-linked programmes were introduced to address these challenges,
Capital Subsidy Scheme (CCSS) launched to upgrade the existing technology inthe sector and a Credit Guarantee Scheme (CGS) to provide collateral-free loans,particularly the first generation entrepreneurs. The exemption limit for relief frompayment of Central Excise duty was raised to $0.25 million and a Market
Development Assistance Scheme was introduced. In consultation withstakeholders, the list of products reserved for production in the MSE sector was
gradually reduced each year.
The year 2006 was remarkable and marked the solidification of the existing
policies on MSMEs. The Micro, Small and Medium Enterprises Act was passed in2006 to facilitate and fast track development and ensure competitiveness ofthese enterprises; and in March, 2007, a third Package which sought the48

May 2012

promotion of Micro and Small Enterprises in view of the fast changing economic
environment was announced.
The Act is the first legal framework for recognition of the concept of “enterprise”
comprising both manufacturing and service entities. It defines medium
enterprises for the first time and seeks to integrate the three tiers of theseenterprises, namely, micro, small and medium.
It among other things provided for:a) establishment of specific Funds for the promotion, development andenhancing competitiveness of these enterprises;b) progressive credit policies and practices, preference in Government
procurement to products and services of the micro and small enterprises;andc) more effective mechanisms for mitigating the problems of delayed
payments to micro and small enterprises and assurance of a scheme foreasing the closure of business by these enterprises.
There are also other implicit provisions in the act which are either reduced ordone away with as a result. They include:d) With the 2006 Act, the Foreign Direct Investment (FDI) Policy which
provides for restrictive 24% ceiling for equity holding by industrial
undertakings, whether domestic or foreign, in the MSEs has been done
away with and MSEs are defined solely on the basis of investment in plantand machinery (manufacturing enterprises) and equipment (service
enterprises).
e) To encourage further investments for technological up-gradation andhigher productivity in the sector, about 654 items have been taken off thelist of items reserved for exclusive manufacture by the manufacturing
micro and small enterprises– reducing it to 21 at present. This has paved
way and furthered the scale of operations of larger enterprises in the
manufacture of these products in keeping with the global best practices
and standards.
f) Priority is now given to existing credit/finance policy for the MSMEs. Part ofthe existing credit policy include:49

May 2012i.

Priority Sector Lending (PSL):- under PSL scheme 40% of the net public
and private bank net credit is earmarked for the priority sector, while
32% of the foreign banks net credit is set aside for the priority sector,of which 10% is for the MSE sector. In addition any shortfall in suchlending by the foreign banks has to be deposited in the SmallEnterprise Development Fund (SEDF) to be set up by the Small
Industries Development Bank of India (SIDBI).

ii.

Institutional Arrangement:- The institutional arrangement is such that
the Small Industries Development Bank of India (SIDBI) is the principal
financial institution responsible for promotion, financing, developmentof the MSE sector, and coordinates the functions of institutions
engaged in similar activities. Its major operation involves, refinanceassistance, direct lending, and development and support services.
Commercial banks also play important complementary roles aschannels of credit dispensation and financing the working capitalrequirements, besides providing term loans (in the form of composite
loans). At the sub-national level, State Financial Corporations (SFCs)
and twin-functional State Industrial Development Corporations (SIDCs)
are the main sources of long-term finance for the MSE sector.

Soon after the 2006 MSMED Act, government introduced various policies tofurther the development of the sector. The following are some of the policies:

National Manufacturing Competitiveness Programme initiated by the
National Manufacturing Competitiveness Council in 2007-2008. The
objective of the scheme is to develop global competitiveness among Indian
MSMEs.



Export promotion from the MSE sector to help MSEs in exporting theirproducts. It involves the use of facilities or incentives such as, display of
products of MSE exporters in international exhibitions; Government
reimbursementofexpenditure

incurred

by

the

MSEs;

acquainting/familiarising MSE exporters with latest packaging standards,
and techniques; training programme on packaging for exporters areorganised in various parts of the country in association with the Indian
Institute of Packaging; and providing the MSE with assistance for50

May 2012

participation in overseas fairs/exhibitions under Marketing Development
Assistance (MDA) Scheme, overseas study tours, or tours of individuals as
member of a trade delegation going abroad.


There was also full excise exemption up to turnover of $375 thousand perannum provided to enterprises having annual turnover of up to $1 million
under the General Excise Exemption Scheme. However, the limits of excise
exemptions have encouraged tendency among MSEs to go in for horizontal
expansion (i.e. fragmentation) rather than vertical expansion and upward
graduation into medium and large enterprises. For incentivising such
graduation of small to medium/large enterprises so as to enable them toachieve economies of scale, extension of excise exemptions to thegraduating medium enterprises on a tapering scale is under considerationof the Government.

With these supports and incentives in place, India has been able to unleash thepotentials of its MSMEs. In 1994 MSMEs contributed about 94% to the total
number of industrial establishment and about 31% of industrial employment. In
terms of output it accounted for about 40% of industrial output, equivalent to 35%
of industrial value added. Currently, it is estimated that the sector accounts forabout 39% of the manufacturing output and around 33% of the total export of thecountry. Furthermore, in recent years the MSE sector has consistently registeredhigher growth rate compared to the overall industrial sector. The major advantageof the sector is its employment potential at low capital cost. Available official
estimated statistics shows there about 3.6 million MSMEs granted permanentregistration in India an increase of about 78.5% from about 2.0 million in 1995. It
employs an estimated 31 million persons spread over 12.8 million enterprises
and the labour intensity is estimated to be almost 4 times higher than the large
enterprises.
3.20.3 United Kingdom

The UK has a well developed MSME sector -99.9% of businesses are SMEs
providing 54.1% of employment and contributing over 50% of the country‟sannual GDP. There are 3.7 million MSMEs in the UK, that is, one enterprise forevery ten people of working age. From 1983 to 1988, the British Government

51

May 2012

administered a credit guarantee scheme of 750 million pounds in businessexpansion and tax relief to entrepreneurs in quoted companies; and effectively
linked MSMES with appropriate technologies and educational institutions. 19,000
MSMES benefited from the program.
3.20.4 South Korea

The Korean government initially placed the burden of industrial development on
the giant industries, but over time the government realized the importance of a
dynamic, flexible and efficient MSME sector that can provide specialized
subcontracting services to the large firms. Laws were passed to promote MSMEs,
leading to a perceptible rise in their share of economic activity. The system ofpolicy support was crucial to the reversal in their performance. The policy options
covered the setting up of specialized banks to finance MSMEs and the promotionof subcontracting by large-scale industries.
3.20.5 Taiwan

There are about 700 thousand MSMEs in Taiwan, accounting for 70% of
employment, 55% of GDP and 62% of total manufactured exports. The industrial
structure is dominated by MSMEs and programs to promote subcontracting havebeen of special significance of the country's industrial development.
In 1982, the government set up the Medium and Small Business Administration
to coordinate the efforts of several support agencies that provided financial,management, accounting, technological and marketing assistance to the MSMEs.
The Taiwan Medium Business Bank, the Bank of Taiwan, the Small and Medium
Business Credit Guarantee Fund, and the Small Business Integrated AssistanceCentre also provide targeted financial assistance to MSMEs.
In Taiwan, a large number of small and medium sized enterprises specialize in avariety of skilled intensive and flexible operations aimed at world markets but
most are too small to conduct their own research and development. The
government helped them with a range of technological support measures:One of the most important has been to transfer to MSMEs, productionready technology that the government has imported and adapted.

52

May 2012

There is development in the use of MSMEs to implement local content
measures, but more effective have been measures to raise the efficiency
of local firms through programs of technical assistance and quality
enhancement.

A number of institutions were set up to provide credit, technology and marketing
assistance. The China Productivity Centre is the best known for its efforts topromote automation in industry to cope with rising wages and increasing needs
for precision and quality.

53

May 2012

4

METHODOLOGY

4.1

Survey Design for the Study
In order to build a consistent and reliable database for evaluating the impact ofpolicies and government programmes in developing appropriate responses, it isimportant to give a clear definition of Micro, Small and Medium enterprise.
Individual countries‟ circumstances determine how MSME is being defined in thatcountry for instance some countries define it (MSME) by the total assets, othersby employment, turnover, or paid-up capital.
However, in Nigeria, the current classification is based on the number of
employees and assets (excluding land and buildings).
SectorMicro

Employment Band ‹ 10

Small

Medium

Large

10-49

50-199200 andabove

In practice, the number of employees is the most common standard used in
National SME policies worldwide. The criteria/ classification to be adopted for thissurvey is as stated above.
4.2

Survey Objectives
The main objective of this survey is to establish a credible database for the Micro,
Small and Medium Enterprises (MSME) sub-sector in Nigeria so as to provide
infrastructure that will stimulate and trigger the growth and development of thesector in accordance with SMEDAN‟s mandate.
Other Objectives are:1

To determine the contribution of Micro, Small and Medium enterprises(MSMEs) sub-sector e.g. manufacturing, building and construction etc. to
GDP in Nigeria

2

To determine the number of Micro, Small and Medium Enterprises (MSME)
in Nigeria on the basis of geopolitical zones, states and LGAs

3

To identify the challenges and constraints facing the operation of Micro,
Small and Medium enterprises in Nigeria

54

May 20124

To identify the number of people employed in the MSMEs sub - sector

5

To identify the number of MSMEs owned by women and men towards

gender equity

4.3

6

To identify the ownership structure of MSMEs within age bracket

7

To determine the number of MSMEs by categories and sizes

8

To identify the number of MSMEs that are not registered

9

To determine the growth rate of MSMEs

10

And lastly, to identify the number of clusters in Nigeria

Coverage
The survey was conducted in all the 36 states of the Federation and the Federal
Capital Territory (FCT), Abuja. For household component, both urban and rural
enumeration areas (EAs) with Micro enterprises were canvassed through the
National Integrated Survey of Household (NISH) schedule. Also, rural and urban
areas where small and medium enterprises are located were covered through the
National Integrated Survey of Establishment (NISE) module.

4.4

SCOPE
The subject areas covered in the two (2) modules among others include:a. Holding identification
b. Business Status
c. Free Entry and Competitiond. Input, Output, Expenditure and Receipts
e. Technical Support Services/Enterprises growthf. Level of employment
g. Educational Qualification of workers
h. Total revenue/Turnoveri.

Capacity Utilizationj.

Inventoryk. Productionl.
4.5

Source of working capital etc.

Sample Design
The frame of Enumeration Areas (EAs/Clusters) of 2006 Housing and Population
Census conducted by the National Population Commission (NpopC) were used.

55

May 2012

However, the National integrated Survey of Households (NISH) which is thevehicle for conducting all household based surveys in NBS, the 2007/2012
edition were adopted for Household component where the Micro enterprises
households were selected. Likewise, the frame of Small and Medium enterprises
with the Agric and Business Enterprises Statistics Division of NBS were used forthe establishment component. Thirty (30) EAs comprising of 3 replicates in which
each replicate contain 10 EAs were selected per state and FCT, Abuja. These
replicates are sub-sets of twenty (20) which each state of the federation and FCT,
Abuja had. It should be noted that the 3 replicates were different from state tostate depending on the concentration of Micro Enterprises in the states.
Furthermore, ten (10) Micro enterprises were systematically selected per EA
making a total of 300 Micro enterprises to be visited in each state and FCT, Abuja.
This sample is large enough to give a robust estimate at the state level. However,Zonal and National estimates were aggregated.
For the establishment component, 4000 Small and Medium enterprises werevisited. The 12 sectors and sub-sectors covered include:

ManufacturingWholesale and Retail tradeHotel and Restaurants

Mining and Quarrying

Building and Construction Real Estate, Renting and Business activity

Financial Intermediation



Health and Social works

Organized road transport, storage and communication



Other Community, Social and Personal service activities



Educational Services andAgriculture (Corporate Farms)

The criteria used to select the enterprises with non-zero probabilities include
employment size, contribution to the Gross Domestic Product (GDP), a priori
knowledge of the performance of the sectors in the economy and response statusof the enterprise.

56

May 2012

4.6

PretestA pretest was carried out to test the adequacy of the survey instruments i.e.
Questionnaires and instruction manual. It was also, used to test the field logistics
and it helped to prepare for the main survey. The coverage for the pretest was two(2) states i.e. Kano (North) and Lagos (South).

4.7

Survey Instrument
A generic questionnaire was adopted for both micro and the formal enterprises toallow easy administration of the questionnaire in the field. A very comprehensive
manual of instruction that explained in details all that were required to fill thequestionnaire properly were adopted and It also served as reference materials forthe field staff.

4.8

Training for Fieldwork
There were two (2) levels of training, the 1stlevel, the training of trainers (TOT)and the 2nd, the zonal training.
The 1st level training was the training of trainers (TOT) and it was held at NBS
Headquarters, Abuja. The training comprised of trainers (24), monitoring officers(37) and coordinators (12). In all, 55 officers were trained. The training lasted forone (1) day.
The 2nd level training was held at the six (6) NBS zonal offices. The trainees
include: Interviewers (348), Supervisors (114), State Officers (37) and Zonal
Controllers (6) The training lasted for one (1) day as well.
The distribution of states to zones of the 2nd level training was thus:
NORTH CENTRAL: Niger, FCT, Benue, Plateau, Kogi, Nasarawa
NORTH EAST: Gombe, Bauchi, Borno, Adamawa, Yobe and Taraba
NORTH WEST: Kaduna, Kano, Kebbi, Sokoto, Jigawa, Katsina and Zamfara
SOUTH EAST: Enugu, Abia, Anambra, Ebonyi, Imo and Delta
SOUTH SOUTH: Cross Rivers, Rivers, Bayelsa, Akwa-Ibom
SOUTH WEST: Oyo, Ondo, Osun, Ekiti, Lagos, Ogun, Kwara and Edo
The underlined and coloured states were the zonal training centres

57

May 2012

4.9

Fieldwork Arrangement

4.9.1

For Household (Micro) Enterprises) component

A team comprises of two (2) interviewers and one (1) supervisor in each of thestates of the federation and Abuja (FCT). Given that each interviewer will complete
between 6-8 questionnaires per day, the fieldwork was completed within thirteen(13) days including travel time within enumeration areas.
4.9.2

Formal (Small and Medium Enterprises) Component

Since 4,000 formal enterprises were visited nationwide, a total of 200
interviewers were deployed in addition to 40 supervisors. The work load in eachstate varies depending on the number of formal enterprises allocated to the state.
Each interviewer lodged and retrieved between 4-6 questionnaires, the fieldwork
was completed within thirteen (13) days including callbacks.
4.9.3

Monitoring of Fieldwork

There were two (2) layers of monitoring exercises. The first layer involved the NBS
State Officers and Zonal Controllers. This took place immediately after thecommencement of the fieldwork and it ran throughout the data collection period.
The second layer monitoring exercise involved the NBS/SMEDAN headquarters
staff; it was organized in such a way that it coincided with the end of the
fieldwork. It lasted for four (4) days and thirty-seven (37) officers were involved.
4.9.4

Coordination

High level senior staff of NBS/SMEDAN coordinated the activities of the survey.
Activities coordinated include Zonal Training and Fieldwork. Twelve (12)Coordinators were involved while coordination lasted two (2) days.
4.9.5

Retrieval

All completed questionnaires were properly edited and returned by the monitoring
officers to NBS Headquarters in Abuja for data processing. Records were batchedenumeration area by enumeration area and sector by sector.
4.10

Data Processing
Data processing and analysis were carried out at NBS Headquarters, Abuja

58

May 2012

These involved system development, Data Editing, Data Entry, Data Cleaning andTable Tabulation/ Generation.
4.11

Report writing
A committee made up of NBS/SMEDAN staff wrote the report. The report iswritten in a very simple language devoid of technical terminology for easy
understanding and to make it useful to the Users, Policy Makers, Planners,
Researchers, development partners, etc.

4.12

Documentation/Dissemination/Archiving
The data management toolkit was used to Document and Disseminate data. A
day dissemination workshop was held to discuss the results/findings with theprincipal stakeholders within the MSME sectors. The results will be published andwritten on CD and hosted on NBS and SMEDAN websites for further
dissemination thereafter.

59

May 2012

5

DATA ANALYSIS: THE FORMAL SECTOR – SMALL AND MEDIUM ENTERPRISES

5.1

The Formal Sector – Small and Medium Enterprises

5.1.1

Number of Small and Medium Enterprises by State
Table 31 in the Appendix reveals that 92.8 per cent of the enterprises are between

10-49 employees while 7.22% are between 50–199. Bayelsa, Osun and Zamfara
states have hundred percent enterprises in the employment size band 10-49.
While other states and (FCT) Abuja have more than fifty percent in same interval.
Only eight states have more than ten percent enterprises in interval 50-199
employees. Other states and (FCT) Abuja have less than ten percent.
5.1.2

Total Number of Small and Medium Enterprises by Sector
Table 4 shows that, manufacturing sector has the highest number of enterprises.

Followed by Wholesale and Retail Trade, Repairs of motor vehicles and household
goods.

All sectors in 10-49 employees have above fifty per cent enterprises.

While in 50-199 employment size band, only four sectors have ten percent andabove enterprises.

Other enterprises have less than ten percent in theemployment size band.
Figure 1 Total Number of Small and Medium Enterprises by Sector
100.00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00

1 Please note that Table 2 to Table 102 can be found in the Appendix of this report.

60

May 2012

5.1.3

Number of Enterprises by State and Sector
Table 5 shows that manufacturing sector has the highest number of enterprises

followed by Wholesale and Retail Trade; Repair of Motor Vehicles and Household
goods 6,652 and 4,041 respectively. The table further reveals that on state basis
Lagos, Kano, Oyo and Anambra have the figures in the manufacturing sector. See
table 4.1.3 in the appendix.
5.1.4

Start-Up Capital by Enterprise
Table 6 reveals that 83.2 per cent of the enterprises have initial start-up capital

below N10 million, while 7.0 per cent of the enterprises have initial start-up
capital between N10-N20 million. Above 50 million ranked third with 5.4 percent. The least number of enterprises had the start-up capital in N31--N40 million
naira with less than one per cent (precisely 0.7 per cent).
Figure 2 Start-Up Capital

90
80
70
60
50
40
30
20
10
0
Below 10

10 - 20

21 - 30

31 - 40

41 - 50

Above 50N‟Million

5.1.5

Start-Up Capital by Sector
Table 7shows that, the initial start-up capital of below N10 million as at December

2010 recorded the overall average of 83.2 percent. While by sector, financial
intermediation enterprises recorded 59.3 per cent being the least in the category.
In other four categories, the sector recorded 15.7 per cent in N10-N20 million,
5.6 per cent in N21 – N30m, 0% in N31-N40 million 5.6 per cent in N41 – N50
million and above N50 million 13.9 percent.
5.1.6

Total Capital as at December 2010 by State
Table 8reveals that 68.9 percent of the small and medium enterprises have thetotal capital below ten million naira as at December 2010 in the country. Further

61

May 2012

study of the table, shows that enterprises in all states except Kwara state, Taraba
state and Federal Capital Territory (FCT) Abuja recorded total capital below fifty
percent. While 12.3 percent of the enterprises have the total capital in the rangeof ten to twenty million naira. See Table 9 in the appendix for details.
Table 6 reveals that 68.9 per cent of the enterprises have the total capital falls
below N10m. While 12.3 per cent of the enterprises have theirs fall between N10– N20 million. 9.5 per cent of the enterprises fall in above N50 million. While theleast constitutes 1.5 per cent in N41 – N50 million.
Figure 3 Total Capital by Enterprises as at December 2010
80
70
60
50
40
30

20
10
0
Below 10

10 - 20

21 - 30

31. 4041 - 50

Above 50N‟Million

5.1.7

Total Capital by Sector as at December 2010
Table 10 shows that, manufacturing sector has the highest total capital as at

December 2010, with the concentration in below N10 million naira size bands ofabout 73.4 percent. Followed by size band (N10m – N20m) with 10.3 per cent.
5.1.8

Ownership Status

The form of business ownership structure is predominantly in the sole
proprietorship with 57.5 percent. The second dominance of ownership status in
the country is private Limited Liability, accounting for 27.2 percent. See Table 11.

62

May 2012

70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

5.1.9

Ownership Status by Sector

In the ownership status by sector, manufacturing sector is the dominance. Within
the sector, the sole proprietorship has 28.4 percent followed by the private
Limited Liability with 26.1 percent.
The second dominant sector is the wholesale and Retail Trade, Repairs of motor
vehicles and Household Goods with 21.9 percent and within the sector, the sole
proprietorship ownership of business leads, Followed by private Limited Liability
ownership status with 13.2 percent. See Table 12

150
100
50
0
1

2

3

4

5

6

7

8

9

10

11

12

Sole Proprietorship
Partnership
Private, Hunting, Forestry and Fishing
Cooperative
Faith Based Organisation
Others

5.1.10 Gender of Owner (Sole Proprietorship)

The survey revealed that female accounts for 13.57 per cent as against 86.43
per cent for male in the ownership structure (Sole proprietorship) of the63

May 2012

enterprises. Most of the sectors are dominated by male with percentages higher
than the sectoral average of 86.43 per cent. Three sectors recorded percentages
lower than the sectoral average - Hotels and Restaurants (76.56%); Education(62.12%) and Other Community, Social and Personal Service Activities (62.77%).
See Table 13.

120.00100.00
80.00
60.00
40.00
20.00
0.00
Other Community, Social andPersonal Service Activities

Health and Social Work

Education

Real Estate, Renting andBusiness Activities

Financial Intermediation

Transport, Storage andCommunication

Hotels and Restaurants

Wholesale and Retail Trade;
Repair of Motor Vehicles and
HH

Building and Construction

Manufacturing

Mining and Quarrying

Agricultre, Hunting, Forestry
and Fishing

Male

Figure 4 Gender of Owner (Sole Proprietorship)

5.1.11 Age of Owner (Sole Proprietorship)

In terms of Age distribution of owners, Table 14shows that the age bracket of 3650 dominates, accounting for 43.60 per cent as against 13.40 per cent for under
36 years of age. However, 51-60 years of age account for 26.86 per cent, while
above 60 years of age recorded 16.0 percent.
50.0
40.0
30.0
20.0
10.0
0.0
Below 20

20 - 25

26 - 35

36 - 50

Figure 5 Age of Owner (Sole Proprietorship)

64

51 - 60

Above 60

FemaleMay 2012

5.1.12 Highest Qualification Attained by Owner

In the categorisation of sole proprietorship business by the highest academic
qualification attained, as shown in Table 15, BSc/HND recorded the highest in the
country with 30.9 percent, followed by Senior Secondary School Certificate
owners with 21.3 percent.
Figure 6 Highest Qualification Attained by Owner

35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0

5.1.13 Initial Total Assets at Inception

The initial total assets at inception of the enterprises have its concentration in
below ten million naira with about 78.5 per cent. The second dominance is above
N50 million with 8.2 percent. See Table 16
Figure 7 Initial Total Assets at Inception
90
80
70
60
50
40
30
20
10

0
Below 10

10 - 20

21 - 30

31 - 40

41 - 50

Above 50

5.1.14 Total Asset Value as at December 2010
Table 17shows the total asset value as at December 2010, concentrated in below

N10 million naira with 66.1 percent. The second dominance size band is N10 toN20 million naira with 12.4 percent.

65

May 2012

Figure 8 Total Asset Value as at December 2010

80.0
60.0
40.0
20.0
0.0
Below 10

10 - 25

26 - 45

46 - 65

66 - 85

Above 85

Naira Million

5.1.15 Source of Capital

The survey revealed that, the main source of capital is personal savings with
54.4pecent, followed by loan with 22.0 percent. The family source of capitalranked third with 16.7 percent. See Table 18.
Figure 9 Source of Capital

60.0
40.0
20.0
0.0
Personal Savings

Loan

Family Source

Cooperative/Esusu

5.1.16 Business Monthly Sales (Turnover) 2009
Table 19 highlights the monthly business turnover of enterprises in the country.

Most of the business monthly turnover 2009 was below six million naira with 51.7
per cent. The second dominance category in the same year was forty-five million
naira and above, with 21.5 percent.

66

May 2012

Figure 10 Business Monthly Sales (Turnover) 2009
60.0
40.0
20.0
0.0
Below 6

6 - 1516 - 25

26 - 35

36 - 45

Above 45

Naira Million

5.1.17 Business Monthly Sales 2010
Table 20 highlights the business turnover of the enterprises in the country. The

enterprises maintain the trend of turnover in 2009 and in 2010, with below six
million naira, recording 78.7 per cent concentration. There was remarkable
improvement in the monthly turnover of enterprises in 2010, when compared with
2009 in the same size band.
The second dominance category in 2010 is above forty-five million naira with 7.9
per cent. In comparison with 2009, there is a drop of 13.6 percentage points.
Figure 11 Business Monthly Sales (Turnover) 2010

80.0
60.0
40.0
20.0
0.0
Below 6

6 - 1516 - 25
26 - 35N‟Million

36 - 45

Above 45

5.1.18 Business Monthly Cost of Operation
Table 21on cost of operation reveals that, 89.2 percent of enterprises in the

country in (2010) have their operational monthly cost below ten million naira

67

May 2012

while the second dominance category is six to fifteen million naira, representing
5.2 per cent.
Figure 12 Business Monthly Cost of Operation
100.0
80.0
60.0
40.0
20.0
0.0
Below 6

6 - 1516 - 25
26 - 35N‟ Million

36 - 45

Above 45

5.1.19 Promotion Media Used by the Enterprise

The promotional medium mostly used by enterprises in the country in 2010 was
person-to-person with about 25.0 percent. The second dominance was handbill
distribution by enterprises with 17.4 percent. The least used promotional medium
in the businesses was sales discount with 1.0 per cent. See Table 22.
Figure 13 Promotional Media Used by the Enterprise

25.0
20.0
15.0
10.0
5.0
0.0

5.1.20 Business Insurance by Sector
Table 23 shows that, as at December 2010, only about 42.5 percent of theenterprises in the country were insured. Within the business sector,
manufacturing sector insured only 36.2 percent of the enterprises while
wholesale and Retail Trade, Repairs of motor vehicles and Household Goods

68

May 2012

insured only 32.5 percent. Generally most enterprises in the country are notinsured as seen from the table.

Figure 14 Business Insurance
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
Other Community, Social andPersonal Service Activities

Health and Social Work

Education

Real Estate, Renting andBusiness Activities

Financial Intermediation

Transport, Storage andCommunication

Hotels and Restaurants

Wholesale and Retail Trade;
Repair of Motor Vehicles and
HH

Building and Construction

Manufacturing

Mining and Quarrying

Agricultre, Hunting, Forestry
and Fishing

InsuredNot Insured

5.1.21 Daily Usage of Alternative Source of Power
Table 24 reveals that, majority of the enterprises (precisely 39.8 percent) makedaily usage of alternative source of power in the range of 1-5 hours .While about
34.9 percent of the enterprises makes daily usage of alternative source of powerin the range of 6-10 hours. Another remarkable observation is that, about
12.0percent of the enterprises make daily usage of alternative source of power inthe range of 16-20 hours.
It worth noting that, most of the manufacturing enterprises (precisely about 37.4
percent) make daily usage of alternative source of power in the range of 6-10
hours. While about 36.0 percent of the enterprises in the sector make daily usageof alternative source of power in the range of 1-5 hours. Furthermore, only about
13.2 percent make daily usage of alternative source of power in the range of 1620 hours.
5.1.22 Employment by Sex at Commencement of Business

The total number of employees at commencement of business as shown in Table
25 is 37,996 persons. The table further reveals that, 22,106 employees are

males with dominance trend of 58.18 percent. While 15,890 employees arefemales, representing 41.82 percent. The sex ratio (Female/Male ratio) is 8:11.

69

May 2012'10-49
96.6

Figur
e 15
Empl
oyme
nt by
Sex
at
Com
menc
emen
t
of
Busin
ess

50-199
97.6

3.4
2.4
Male
Female5.1.23 Employment by Sector at Commencement of BusinessAs shown in Table 26, manufacturing sector employed the highest number of
5,867 males and 3,327 females at commencement of business. The sex ratio(female/male) is 1:2. The second dominance is the wholesale and Retail Trade,
Repairs of motor vehicles and Household Goods with 4,019 males and 2,414
females. The sex ratio (female /male) is 1:2.
5.1.24 Employment by Sex as at December 2010

The total number of employees as at December 2010 was 39,478 persons asshown in Table 27. The table further reveals that, male employees dominated with
22,139 persons, representing 56.08 percent while the female counterpart was
17,339 persons, representing 43.92 percent. The sex ratio is 17:22.

70

May 2012

Figure 16 Employment by Sex as at December 2010'10-4992.5

50-199
94.2

7.5
5.8
Male
Female5.1.25 Employment by Sector as at December 2010
Table 28shows that, the manufacturing sector employed the highest number of

9,683 persons as at December 2010. The sex components of employees in the
manufacturing sector are 5,873 males and 3,809 females, representing 60.7 and39.3 percent respectively. The female/male sex ratio is 2:3.
The second dominance sector is the wholesale and Retail Trade, Repairs of motor
vehicles and Household Goods with 6,727 employees, with a breakdown of 4,014
males and 2,686 females. The female/ male ratio is 3:4.
5.1.26 Educational Qualification of Employees
Table 29 reveals that, the educational qualification of employee is mainly Senior

Secondary School Certificate with 21.6 percent. NCE/ND and First School Leaving
Certificate/Primary School Certificate ranked second and third with 16.5 and 16.1
percent, respectively. Employees that do not have any education qualification
constitute 5.6 per cent.

71

May 2012

Figure 17 Educational Qualification of Employees
25.0
20.0
15.0
10.0
5.0
0.0

5.1.27 Market Channel of Products

In terms of market channel of products, Table 30 reveals that, the same locality
takes the lead with 24.5 percent, followed closely by Nigeria only with 23.7
percent while „Same State‟ ranked third with 21.2 percent.
Figure 18 Market Channel of Product(s)
30.0
25.0
20.0
15.0
10.0
5.0
0.0
Same
LocalitySame Town Same State Nigeria Only ECOWAS
State

Africa Only WorldWide

4.1.27.1 Export of Products/Services
Table 31reveals that only 2.6 percent of the respondents engage in the export oftheir products/services.

72

May 2012

Figure 19 Export of Product/Services
Yes

No

3%

97%

5.1.28 Business Association

As shown in Table 32 of the enterprises, 61.0 per cent do not belong to Business
Associations of the 39.0 percent of the enterprises belonging to one Business
Association or the other, 21.4 per cent belonged to trade Association, while
professional Association ranked second with 12.7 per cent..
Figure 20 Business Association

None

Trade Association

Professional Association

Cooperative Society

Religious Organisation

Others

5.1.29 Business Patent Right by Sector

At national level, and across sectors, 35.9 per cent of enterprises reported thatthey have patent right while 64.1 per cent reported otherwise.
On sectoral basis, Mining and Quarrying recorded the highest percentage of 62.4
per cent followed by Hotel and Restaurants with 42.1 per cent for thoseenterprises reported that they have patent right. See Table 33.

73

May 2012

Table 33 further shows that most of the sectors enterprises do not have patentright and this accounted for over fifty per cent across sectors except Mining and
Quarrying.
Five (5) sectors – Namely Agriculture, Hunting, Forestry and Hunting; wholesale
and Retail Trade, and Household goods, Real Estate, Renting and Business
Activities; Education; and Other Community, social and Personal Service Activity
recorded less than the national average of 35.9 per cent.
Figure 21 Business Patent Right by Sector
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

Patent Right
No Patent Right

5.1.30 Own Patent Right by Form of Ownership
Table 34 shows the overall average of enterprises owned patent right and no

patent right of 35.9 and 64.1 per cent respectively.

Sole proprietorship,partnership, Limited liability and religious organisations accounted for over fifty
per cent that have no patent.

74

May 2012

Figure 22 Own Patent Right by Form of Ownership

70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

Patent Right
No Patent Right

5.1.31 Registered Patent Right by Sector

Among the sectors enterprises reported on patent right registration, mining andquarrying recorded the highest percent of 62.4 per cent, followed by Hotels &Restaurant and Health & Social Work, both with 42.1 percent. The lowest was
Other Community, Social and Personal Service Activities with 24.4 per cent. See
Table 35.

Figure 23 Registered Patent Right by Sector
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

Patent Right
No Patent Right75

May 2012

5.1.32 Registered Own Patent Right by Form of Ownership

Out of 8225 enterprises across the sectors, that own Patent Right 7244 (88.1 percent) had registered their patent right while 981 (11.9 per cent) had notregistered.
All the components of form of ownership recorded above 80 percent. However,
Cooperative, Religious Organisation and Private Limited Liability recorded lessthan 10 per cent for non-registration with 3.8, 4.4 and 7.0 per cent respectively.
See Table 36.
Figure 24 Own Patent Right by Form of Ownership
100.00
80.00
60.00
40.00
20.00
0.00
Patent Right Registered
No Patent Right Registered5.1.33 Skills Gap by Sector

Enterprises in the Mining and Quarrying Sector recorded the highest percentageof 80.6 percent for the availability of qualified artisan, followed by Building andConstruction with 69.8 per cent.
On the other hand, the non availability of qualified artisans is about 46.1 per centin Education, followed by Financial Intermediation. 42.5 per cent and Real Estate,
Renting and Business Activities (42.5 per cent). See Table 37.

76

May 2012

Figure 25 Skills Gap by Sector
100.0
80.0
60.0
40.0
20.0
0.0

Qualified Artisans Readily
Available
Qualified Artisans Not Readily
Available

5.1.34 Skills Gap by Forms of Ownership
Table 38 reveals that about 63.7 percent of the enterprises agreed to having

qualified artisans readily available to fill skill gap.
The table further shows that, all forms of ownership were rated above fifty percentof having qualified artisans readily available to fill skill gap.
Figure 26 Skill Gap by Form Ownership
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00

Qualified Artisans
Readily Available
Qualified Artisans Not
Readily Available

5.1.35 Major Government Policy that Affect Business Most Favourably
Table 39reveals that, 21.1 percent of the enterprises reported good roads as mostfavourable government policy affecting the business. The second major
government policy as shown in table 38 is sanitary inspectors with 20.2 percent.

77

May 2012

Figure 27 Major Government Policy that Affect Businesses Most Favorably
25.00
20.00
15.00
10.00
5.00
0.00

5.1.36 Major Government Policy that Affect Businesses Most Unfavourably
Table 40 reveals excess taxes as the major government policy that affect businessmost unfavourably in 2010 with about 33.6 percent.
Figure 28 Major Government Policy that Affect Businesses Most
Unfavourably
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00

5.1.37 Top Priority Areas of AssistanceIn areas of assistance, Table 41 shows that 24.7 percent of the enterprises mostneeded area of assistance is in financing/financial assistance with 24.7 per cent.
Second priority area of assistance as revealed in the table was the provision of
infrastructure (like access roads, market work space etc.) with 19.0 percent

78

May 2012

The least areas of assistance as revealed in the table were subsidized cost of
medical treatment and improved facilitate quality product with 1.4 percent ineach case.
Figure 29 Top Priority Areas of Assistance
30.00
25.00
20.00
15.00
10.00
5.00
0.00

5.1.38 Capacity Utilization Manufacturing

In manufacturing sector, the overall weighted average capacity utilisation ofvarious products was 56.4 per cent. Viewing across by products, fruit juices andvegetable juice had it installed capacity utilized to the tone of 97.55 per cent,closely followed by palm coconut, palm kernel, babassu and linseed oil and theirfractions, refined but not chemically modified(CPC 2167) ranked second,

beverages )CPC 2449) ranked third with 92.28 percent utilization. While the least
installed capacity utilized is 10.26 per cent (CPC 2922). See Table 42 in the
appendix for details
5.1.39 Capacity Utilization Mining and Quarrying
Table 43 reveals that an average 49.6 percent of installed capacity of various

products in Mining and Quarrying was utilized. Processing of salt utilized thehighest quantity of the installed capacity accounting for 86.2 per cent. The leastutilised product was Limestone with 41.5 percent
5.1.40 Awareness of SMEDAN
Table 44 reveals that most of the respondents are not aware of SMEDAN. 45.5 percent of the respondents indicated „NO‟ as regards the question. „Have you heard
about SMEDAN?

79

May 2012

Figure 30 Awareness of SMEDAN
Yes

No

46%
54%

5.1.41 Awareness of SMEDAN by StateAs shown in Table 45, Ogun State recorded the highest „NO‟ of 78.6 per cent,followed by Jigawa state 73.7 per cent while Borno state ranked third with 70.68
per cent. The awareness is more in the FCT and Delta State representing 76.9 percent and 69.7 per cent respectively.
Figure 31 Awareness of SMEDAN by State
100.00
80.00
60.00
40.00
20.00
0.00

5.1.42 Awareness of SMEDAN by Sector

The awareness by sector is not encouraging either as indicated in Table 46Table 46.
Building Construction, Other Community, Social and Personal Service activities
recorded 65.09 percent and 67.5% respectively.

80

May 2012

Figure 32 Awareness of SMEDAN by Sector
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00

Yes
No

5.1.43 Benefit from SMEDAN Services
Table 47 shows how many of the respondents have benefited from SMEDAN

Services. 90.5 percent responded that they have not benefited from SMEDAN
Services.
Figure 33 Benefit from SMEDAN Services
Yes
10%

No
90%

4.1.43.1 Benefit from SMEDAN Services by States
Table 48 reveals that Bayelsa, Ebonyi, Jigawa, Kwara, Taraba and Yobe Statesrecorded 100 percent Non-beneficiary of SMEDAN Services.

81

May 2012

5.1.44 Ranking of SMEDAN Services

To rank the SMEDAN Services, the respondents have benefited, Entrepreneurship
Training and Vocational Skill upgrading were ranked as most important
respectively.

While Facilitation of product quality control and certification,

facilitation of access to market and finance followed in that order as shown in
Table 49

5.1.45 Rank of Problems Militating Against Enterprises’ Development in Nigeria

To diagnose the major problems militating against business in Nigeria,
respondents were asked to rank the identified problem in order of severity; clearlyas Table 50 shows, lack of access to finance ranks the most severe followed byweak infrastructure and inconsistency in government policy.
5.1.46 Measures Taken by SMEDAN to Alleviate Problems

Respondents were asked to rank what SMEDAN can do to alleviate some of theidentified problems in order of severity.

Most of the respondents ranked

facilitation of access to finance and entrepreneurship training as most severe
shown in Table 51.
5.1.47 Export of Product/Services

The survey reveals that only 2.6 percent of the respondents engage in the exportof their products/services.
Figure 34 Export of Products/Services
Yes
3%

97%

82

No

May 2012

5.1.48 Value of Export of Product/Services
Table

53

reveals that, 59.7 percent of the enterprises exported theirproducts/services below 10 million naira. The next highest, that is above 50
million naira with 12.3 percent.
5.1.49 Banking Relationship
Table 54 reveals that 79.3 percent of the enterprises have banking relationship.

Figure 35 Banking Relationship

No
21%
Yes
79%

5.1.50 Business Registration
Table 55indicates that 80.8 percent of the enterprises registered their businesswith various business registration authorities.
Figure 36 Business Registration

No
19%

Yes
81%

5.1.51 Business Plan
Table 56 reveals that 78.2 percent of the enterprises have business plan.

83

May 2012

Figure 37 Business Plan

N0
22%

Yes
78%

5.2

Data Analysis: The Informal Sector – Micro Enterprises

5.2.1

Number of Enterprises by State
Table 57 reveals that there are 17,261,753 micro enterprises in Nigeria, with

Lagos and Kano states recording the highest number of enterprises of 5.1 and
5.0 percent respectively followed by Rivers state with 3.4 percent, while FCT(Abuja) has the lowest number of micro enterprises of 1.6 percent.
5.2.2

Number of Enterprise by Economic Sector

As indicated in Table 58, wholesale and retail trade, repairs of motor vehicles andhousehold goods, was highest (53.2 percent) followed by Manufacturing andAgriculture that stood at 16.8 percent and 16.3 percent respectively. Health andsocial work had the lowest figure of 0.1 percent

84

May 2012

Figure 38 Number of Enterprises by Economic Sector

5.2.3

Initial Start-Up Capital at Inception (N’000)
Table 59 in the Appendix indicates that majority (80.6 percent) of micro enterprises

covered started with initial capital of less than N50, 000 (Fifty thousand naira),
while 13.1 percent started with N50, 000-N100, 000.
5.2.4

Initial Start-Up Capital by Sector (N’000)
Table 60 shows that Wholesale and Retail Trade, Repair of Motor Vehicles andHousehold Goods had the highest number of persons (7, 216, 934) that started
their businesses with initial start-up capital of below N50, 000 followed by the
manufacturing sector (2, 459, 001), while Health and social work sector had thelowest (9,458).
5.2.5

Total Capital as at December 2010
Table 61 reveals that more than half (53.7 percent) of micro enterprises owners

engaged in business activities operated with total capital less than N50,000 as at
the end of December 2010. Next to this are those operating with total capital
between N50-100,000 representing 25.6 percent.

85

May 2012

Figure 39 Total Capital as at December 2010

Fig.4.2.5: Total Capital As At 2010
P
e
r
c
e
n
t

60.00
50.00
40.00
30.00
20.00
10.00
0.00

Amount (000)5.2.6

Ownership Status
Table 62

reveals that the ownership status of micro enterprises werepredominately sole proprietorship, accounting for 97.4 percent, while partnershipfollowed by 2.4 percent.
Figure 40 Enterprise by Ownership Status

Fig.4.2.6: Enterprise by Ownership Status

Sole Proprietorship
Partnership
Cooperative
Faith Based Organisation

5.2.7

Ownership Status by Sector
Table 63in the appendix, reveals that the ownership status of micro enterprises by

economic activities (sector) is dominated by wholesale and Retail Trade, Repair ofMotor Vehicles and Household goods, (8,727,053 enterprises.), followed by
Manufacturing (2,772,225 enterprises) and Agriculture (2,545,781 enterprises).

86

May 2012

5.2.8

Sex of Owners by Economic Sector
Table 64reveals

that female entrepreneurs account for 42.1 percent in theownership structure, while male accounts for 57.9 percent.

Meanwhile female

and male owners were predominantly in wholesale and retail trade, repair ofmotor vehicles and household goods. In other community, social and personal
service activities, females were more (62.2 percent) than the males (37.8
percent). This is very encouraging for women entrepreneurship. They should be
motivated and encouraged as they are more in the home based enterprises.
5.2.9

Age Distribution of Owner

In terms of age distribution of micro entrepreneurs, Table 65shows that the age
bracket (36-50 years) dominates, accounting for 41.6 percent as against 27.9
percent for 26-35 years of age. 20-25 years of age accounts for 6.04 percent,this is not encouraging for the youth.

The youth should be encouraged toembrace micro entrepreneurship by owning and managing their own enterprises
as a way out of the present youth unemployment challenge confronting thecountry.
5.2.10 Highest Qualification Attained by Owners
Table 66indicates that 30.6 percent of micro enterprises owners do not have any

education background while 25.9 percent, 24.6 percent and 11.0 percent
represent those that have secondary, primary school and non formal education
qualification respectively.

87

May 2012

Figure 41 Highest Qualification Obtained by Owners

Fig 4.2.10: Highest Qualification Attained by Owners
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00

Qualification

5.2.11 Initial Total Assets at Inception (N’000)

At the inception of the business, Table 67shows that 72.7 percent of microenterprises had initial assets below N50,000, followed by those who had initialassets of between N50,000 and N100,000 (15.8 percent), while the least initialassets of 0.1 percent was recorded by enterprises that had between N801,000
and N900,000 as initial total Assets.
5.2.12 Source of Capital
Table 68 shows that the source of capital of most micro enterprises are operated

by personal savings, which represents 84.6 percent; while family source, loan
and cooperative/Esusu were other major sources of capital representing 29.8
percent, 9.2 percent and 8.0 percent respectively.

88

May 2012

Figure 42 Source of Capital
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

Fig. 4.2.12: Source of Capital

5.2.13 Business Capacity (Turnover) 2009
Table 69indicates that 82.5 percent of micro enterprises had turnover of below

N50,000 in 2009, while 11.6 percent of the enterprises had turnover of between
N50,000 and N100,000.
5.2.14 Business Capacity Monthly Average (Turnover) 2010
Table 70shows that as at 2010, 76.9 percent of micro enterprises reported amonthly average turnover below N50,000, followed by those that recordedmonthly average turnover of between N50,000 and N100,000 (13.9 percent),
while the least figure of 0.1 percent was recorded by establishments that had
between N 801,000 and N 1,000,000 monthly average turnover.
5.2.15 Monthly Cost of Operation
Table 71 reveals the monthly cost of operations.

The operational cost of theenterprises were mainly below N50,000 representing 92.7 percent while 5.3
percent were from N50,000 to N100, 000.
5.2.16 Promotional MediaTable 72 shows that micro enterprises used more of person-to-person as a medium

to promote their product and services, which accounts for 97.4 percent. While
Radio advertisement, Billboard and Handbill distribution followed with 6.3
percent, 5.8 percent and 3.7 percent respectively.

89

May 2012

Figure 43 Promotional Media
Billboard
3.18%

Radio
advertisement
3.53%

Television
1.15%

Newspaper
advertisement
0.32% Business Card Handbill
0.91%
distribution
2.06%

Person-toPerson
88.85%
Fig 3.2.16: Promotional Media

5.2.17 Business Insurance
Table 73 reveals that the Business Insurance is predominantly in the construction

sector; accounting for 6.5 percent, followed by Mining and Quarrying (4.5 percent)and Hotels and Restaurants (3.5 percent). Most of the business enterprises are
not insured.
5.2.18 Daily Usage of Alternative Source of Power by Sector
Table 74 shows that greater percentage (74.5 percent) of micro enterprises use

alternative sources of power for between 1-5 hours, while 15.7 percent use
alternative sources for between 6-10 hours.

Those that source for theiralternative power for between 11-15 hours and 16-20 hours recorded 5.5 percent
and 4.2 percent respectively. Energy remains a major challenge to theenterprises.
5.2.19 Employment by Sector at Commencement
Table 75shows that more males are employed in the micro enterprises,

representing 58.2 percent than females accounting for 41.8 percent. Meanwhile,
males and females are predominantly employed in Wholesale and Retail Trade,
Repair of Motor Vehicle and Household Goods; Agriculture and Manufacturing.

90

May 2012

5.2.20 Employment by Sector as at December 2010
Table 76indicates that more males, 57.4 were employed in the micro enterprises

than females, 42.6 as at the end of 2010. But wholesale and retail trade; repairof motor vehicles and household goods (50.0 Percent); manufacturing (20.4
percent); Hotels and Restaurants (3.1 percent) and other community, social andpersonal services activities (3.8 percent) employed more females than theirfemale counterparts.
5.2.21 Market Channel of ProductIn the micro entrepreneur, 89.8 percent reported that they used same locality tomarket their products, 74.0 percent used same town, 43.1 percent used samestate, while 0.3 percent used ECOWAS channel to market their products. See Table
77.

Figure 44 Market Channel of ProductFig. 4.2.21: Market Channel of Product
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00

5.2.22 Business Registration by Sector
Table 78 reveals that 95.3 percent of micro enterprises are not registered with

Corporate Affair Commission while 4.7 percent registered their business.
5.2.23 Support Received from Association
Table 79 reveals that majority of micro enterprises (91.5 percent) in Nigeria did notstate the support received from the Association they belong. But 4.4percent

91

May 2012

reported that they enjoyed financial loan support, while 2.0 percent enjoyedtraining support.
5.2.24 Own Patent Right by Sector
Table 80 indicates that ownership of patent right was highest for enterprises inTransport, Storage and Communication (11.3 percent), followed by 9.2 percent(Agriculture) and Construction (9.0 percent), while ownership was lowest in Real
Estate, Renting and Business Activities (1.5

percent).

5.2.25 Patent Right by Form of Ownership
Table 81 highlights that 94.7 percent of micro enterprises had no patent right,

while 5.3 percent had patent right. In other words, their intellectual property was
not protected. This calls for advocacy and encouragement.
Figure 45 Own Patent Right by Form of Ownership
120.00

Fig 4.2.25: Own Patent Right by Form of Ownership

100.00
80.00
60.00
40.00
20.00
0.00
No Patent Right
Have Patent Right

Form of Ownership5.2.26 Patent Right Registered by Sector
Table 82 reveals that 84.0 percent of micro enterprises did not register their patentright. Distributing into economic sector, 54.4 percent registered their patent rightin construction, followed by establishment in Real Estate, Renting and businessactivities (46.9 percent), while other community, social and personal service
activities recorded the least of registered patent right (9.8 percent).
5.2.27 Skills Gap by Sector
Table 83 shows that qualified Artisans are predominantly readily available in

Education sector (66.9 percent), followed by Health and Social Workers sector

92

May 2012(65.8 percent) and Construction Sector (56.4 percent), while the least availabilityof qualified Artisans was recorded by Hotels and Restaurants (38.6 percent).
5.2.28 Skills Gap by Form of Ownership
Table 84 shows that 52.3 percent of micro enterprises did not have qualified

Artisans readily available in their businesses; whereas, qualified artisans are
predominant in sole proprietorship and partnership with 45.5 and 40.9 percent
respectively.
Figure 46 Skill Gap by Form of Ownership
Fig. 4.2.28: Skill Gap by Form of Ownership
100%

50%

Qualified Artisans
Not Readily
Available

0%

Qualified Artisans
Readily Available

Form of Ownership5.2.29 Major Government Policy that Affect Business Most Favourably
Table 85reveals that 83.7 percent of micro enterprises in Nigeria did not statecategorically the major government policies that affected their businesses
favourably, while favourable atmosphere for business and Good roads
representing 5.2 percent and 3.1 percent respectively were identified as major
government policies that affected micro enterprises most favourably.
5.2.30 Major Government Policy that Affect Business Most Unfavourably
Table 86 shows that 55.0 percent of micro enterprises carrying out businessactivities in Nigeria did not state categorically how government policies affected
their businesses unfavourably. While excess taxes and withdrawal of subsidies
representing 12.0 percent and 11.1 percent respectively were identified as major
government policies that affected micro businesses unfavourably.

93

May 2012

5.2.31 Top Priority of Assistance
Table 87 shows that the top priority of assistance of micro enterprises were mainly

in area of financing/financial assistance, accounting for 73.2 percent, followed byprovision of infrastructure (access roads, market, work space), representing 10.6
percent, while the least figure of 0.1 percent was in the area of facilitating quality
product.
5.2.32 Awareness of SMEDAN by Form of Ownership

At the national level, Table 88 reveals that more than nine in every ten microenterprise operators (95.2 percent) are not aware of SMEDAN and benefits theycan enjoy, while only 4.8 percent are aware of SMEDAN. Among those that areaware of SMEDAN, majority (10.1 percent) belongs to Faith Based Organizations,followed by cooperative (8.3 percent) and the least (4.7 percent) are sole
proprietorship.
Figure 47 Awareness of SMEDAN by Form of Ownership
Fig 4.2.32: Awareness of Smedan by Form of Ownership
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Not aware
Aware

Sole
Partnership Cooperative
Proprietorship
Form of Ownership

Faith Based
Organization

5.2.33 Awareness of SMEDAN by State
Table 89 shows the awareness of SMEDAN by the micro enterprise operators bystate. It was revealed that most awareness was recorded by micro enterprise
operators in Nassarawa (31.0 percent), followed by Rivers (27.2 percent) andEkiti (18.5 percent). Kwara and Ogun states had the lowest awareness record of
SMEDAN, 0.2 percent each.

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May 2012

5.2.34 Benefit from SMEDAN Service by State
Table 90 shows the number of states that have benefited from SMEDAN Services.

It was revealed that Bauchi, Kaduna, Ondo and Zamfara recorded 100 percent
beneficiary of SMEDAN Services indicating that all operators that responded
benefitted while Bayelsa, Benue, Delta, Ebonyi, Imo, Jigawa, Kebbi, Kwara, Niger,
Ogun, Osun, Oyo, Rivers, Sokoto and FCT had 100 percent non-beneficiary of
SMEDAN services.
5.2.35 Benefitted from SMEDAN by Form of Ownership
Table 91reveals that 97.1 percent of micro enterprises owners did not benefit fromthe SMEDAN services while 2.9 percent of micro enterprises owners benefited
from the services of SMEDAN. However, those that benefitted from SMEDAN
services are predominantly in sole proprietorship (3.0 percent)5.2.36 Ranking of SMEDAN Services Received

The entrepreneurs were asked to rank SMEDAN services they enjoyed in order ofimportance. As revealed in Table 92, that 6.3 percent of those that had received
entrepreneurship training ranked it as number one (1) while 91.7 percent ranked
it number two (2); 1.6 percent ranked vocational skill upgrading as number one(1) while 94.6 percent rank it number two (2) among the services received from
SMEDAN. Facilitation of access to market was ranked number one (1) by 2.4
percent while 94.0 percent ranked it number two (2).
5.2.37 Ranking of Major Problem Militating Against Business in Nigeria
Table 93 indicates that 84.2 percent of micro enterprises that indentified lack ofaccess to finance as a major problem ranked it as number one (1). Also, 3.5
percent of those that identified lack of work space as a major problem ranked it
as no1 while 50.2 percent ranked it as number two (2). Weak infrastructure was
ranked number one (1) by 4.6 percent while 37.6 percent ranked it as number
two (2). Equally, 3.6 percent of those that identified lack of entrepreneurshipeducation as a major problem ranked it as no 1 while 32.2 percent ranked it as
number two (2) problem.

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May 2012

5.2.38 Personal Insurance of Owners

Only 1.7 percent of the owners of micro enterprises in Nigeria insured themselves
while 98.3 percent do not have any personal insurance policy. Meanwhile, microenterprises owners that did not insure themselves are predominately in the sole
proprietorship. See Table 94
5.2.39 Personal Banking Relationship of Owners
Table 95reveals that 82.6 percent of micro entrepreneurs had no personal banking

relationship to operate their business while 17.4 percent of micro enterprises had
personal banking relationship with the bank. However, sole proprietorship had
the highest no personal banking relationship (82.7 percent)Figure 48 Personal Banking Relationship of Owners
Fig. 4.2.39: Personal Banking Relationship of Owners
100
No Personal Banking
Relationship50

Had Personal Banking
Relationship0Sole Proprietorship Partnership

Cooperative
Faith Based Organization

Form of Ownership5.2.40 Qualification Attained by Workers
Table 96 shows that 18.9 percent of micro entrepreneurship who engage in sole

proprietorship had no education. While 25.6 percent of those who operated inpartnership and 27.6 percent of those who operated in cooperative had primaryschool education.
5.2.41 What SMEDAN Can Do to Alleviate Some of the Problems
Table 97reveals some of the activities SMEDAN can carry out to alleviate some ofthe problems of micro enterprises.

The measures are ranked based on thepriorities of the respondents and the results show that 21.9 percent of those who
prefer entrepreneurship training ranked it no 1 while 30.1 percent ranked it no 2;
6.9 percent of those who prefer vocational skill upgrading ranked it no 1 while30.2 percent ranked it no 2. Also, 11.9 percent of those who prefer facilitation ofaccess to market ranked it no 1 while 42.2 percent ranked it no 2.

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May 2012

5.2.42 Business Plan by Ownership Status
Table 98 is an indication of the proportion of micro enterprises in Nigeria that

prepare business plan and those that did not. About 44.5 percent of microenterprises in Nigeria prepare business plans while 55.5 percent did not prepare
business plan.
5.2.43 Member of Association
Table 99reveals that 86.5 percent of the micro enterprises in Nigeria did notbelong to any Business Membership Association. However, 8.0 percent and 3.4
percent belong to trade Association and Cooperative Societies respectively.
5.2.44 Total Number of Workers by Sector as at December 2010

Workers comprise person who are engaged in the enterprise and the owners ofenterprise. A total number of 32,375,406 workers are engaged in the microenterprises. About 16.73 million are owners of the enterprise, while 15.64 million
are engaged in operation. 51.4 per cent work in the Wholesale and Retail Trade,
Repair of Motor vehicles and Household Goods. 16.9 per cent are engaged in the
Manufacturing Sector, while the least of the workers are in the Health and Social
Sector, representing 0.1 per cent.

5.3

Contribution of MSMEs to the Gross Domestic Product (GDP)One of the key objectives of study was to ascertain the contribution of the MSMEs
to the nation‟s gross domestic product (GDP). To achieve this, data was collected
to reflect the structure of the economy especially as regards the major economic
sectors that has an element of micro, small and medium activities. The analysis
was carried out for twelve (12) activity sectors of the economy which include;
agriculture, hunting, forestry and fishing; mining and quarrying; manufacturing;building and construction; wholesale and retail trade; hotel and restaurants;
transport, storage and communications; financial intermediation; real estate,renting and business activities; education; heal and social work; and othercommunity, social and personal services.
At the end of the analysis which was carried out for the year 2010, it was foundthat the MSMEs contributed 46.54 percent to Nigeria‟s GDP in nominal terms.

97

May 2012

The result further showed that in terms of contribution to each sector, MSMEs
made the highest contribution to other community, social, personal service
activities then followed by real estate, renting and business activities andagricultural activities (Fig 50).

99.98

99.13

98.01

100
67.78

73.82

67.98

63.74

40.62

50

48

39.74

10.76

5.32

0

Fig 4.3.1: Sectoral Contribution of MSMEs to GDP

Figure 49 Sectoral Contribution of MSMEs to GDP

Following this sub-section is the analysis on the contribution of the MSMEs toeach activity sector.
5.3.1

Agriculture, Hunting, Forestry and Fishing

Agriculture in Nigeria can be broken into two major segments; private farmers andcorporate farms. The private farmers constitute the highest percentage both innumber and output and by definition they are classified as micro and small
enterprises while the corporate farms are largely medium enterprises while asmall percentage operates at large scale.
This study shows that MSMEs contribute 98.01 percent of the GDP produced inthis sector. Further breakdown of this result showed that the micro enterprises inthis sector contributed 69.58 percent to nominal GDP while the small andmedium enterprises contributed 25.27 and 3.16 percent of the GDP produced
from this sector.

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May 2012

Medium
3.16
Small
25.27

Micro
69.58

Figure 50 MSMEs Contribution to Agriculture GDP

5.3.2

Mining and Quarrying

Activities in this sector comprises of coal mining, metal ore and other mining &quarrying activities such as stone crushing. At N30.97 billion worth of MSMEs
output in this sector, it was found that MSMEs contribute 67.78 per cent toactivities in this sector. A breakdown of this contributions showed that most of theactivities were from small and medium scale enterprises in this sector which
contributed 35.44 and 28.09 per cent, respectively, while the micro enterprises
contribute 4.25 per cent.
Figure 51 MSMEs Contribution to Mining & Quarrying GDP
Micro
4.25

Medium
28.09
Small
35.44

99

May 2012

5.3.3

Manufacturing

The manufacturing sector as compiled in 33 activities sectors of Nigeria‟s GDP is
made up of oil refining, cement and other manufacturing. However, given thelarge scale nature of the oil refining and cement sub-sectors, this study found thatMSME activities were prominent in the other manufacturing sub-sector.
Activities under the other manufacturing sub-sector includes food, beverages &tobacco, textile, apparel & footwear, wood & wood products; pulp, paper &publishing, non-metallic products, domestic/industrial plastic & rubber, electrical& electronics, basic metal, iron & steel and motor vehicle & miscellaneous
assembly.
The analysis showed that the MSMEs contributes 63.74 per cent to the othermanufacturing sector GDP with micro enterprises contributing 7.31 per cent,small enterprises contributing 29.25 per cent and the medium scale enterprises
contributing 27.18 per cent.
Figure 52 MSMEs Contribution to Manufacturing GDP
Micro
7.31

Medium
27.18
Small
29.25

5.3.4

Building and Construction

Activities in this sector can be classified into two distinct groups; building such as
residential and non-residential and other construction which includes roads,
bridges, dams, airport, etc. In every aspect of this sector in Nigeria MSMEs can befound either at the local government, state or national level. Activities in this
sector are more on the building of residential and non-residential houses by both

100

May 2012

the private and public sector. Most of the activities in this regard are carried out
at MSME level. However, a large chunk of activities in this sector is carried out inconstruction activities which are usually high-valued government financed
projects executed by the various tiers of government in the country.
Analysis of the data collected from the sector for 2010 showed that the MSMEs
activities contribute 10.76 per cent of the total value of activities in this sector,
out of this portion the medium enterprises contributed 8.31 per cent which thesmall and micro enterprises contributed 1.96 and 0.49 per cent respectively.
Figure 53 MSMEs Contribution to Building & Construction GDP
Micro
0.49
Small
1.96

Medium8.31

5.3.5

Wholesale and Retail Trade

The wholesale and retail trade activities constitute a dominant sector in businessactivities engaged by majority of Nigerians. Due to the large population of thecountry and the geographical spread, activities in this sector form a major
component of the people‟s means of economic sustenance. Operators in this
sector depending on their capital can engage in trading activities in various scales
either micro, small, medium of large.
However, given the definition of MSMEs adopted in this study it was found that
despite the large capital outlay used by most operators in this sector theiremployment size still qualify them to be classified as small scale enterprises.
The study found that MSMEs in this sector contribute as much as 67.98 per centof total output from this sector; this was largely driven by the small scale

101

May 2012

enterprises which contribute 46.71 per cent while the medium scale and microenterprises contribute 17.33 and 3.94 per cent, respectively.
Figure 54 MSMEs Contribution to Wholesale & Retail Trade GDP
Micro
3.94
Medium
17.33

Small
46.71

5.3.6

Hotels and Restaurants

The study found that the hotel component of the sector comprises of small,medium and large scale enterprises while the restaurants component isdominated by micro enterprises. The analysis showed that MSMEs contribute
40.62 per cent to activities in this sector‟s GDP. It further showed that 28.10 per
cent of this ratio comes from small scale enterprises, 8.31 per cent from medium
scale enterprises and 4.21 per cent from micro enterprises.
Figure 55 MSMEs Contribution to Hotels & Restaurants GDP
Micro
4.21

Medium
8.31

Small
28.1

102

May 2012

5.3.7

Transport, Storage and Communications

Activities

captured

under

this

grouping

includetelecommunications,postal/courier services, storage facilities and transportation which comprises
road, rail, water, air and other transport services. The telecommunications, airtransport, postal services, rail transport and water transportation were found to
be dominated by large scale enterprises.
The study found that MSMEs operating in this sector contributes 39.74 per centto the sector‟s output. Of this percentage, the medium scale enterprises
contribute 22.76 per cent followed by the small scale enterprises which
contribute 10.54 per cent and micro enterprises which contribute 6.44 per cent.
Figure 56 MSMEs Contribution to Transport, Storage & Communications
GDP

Micro
6.44
Medium
22.76

5.3.8

Small
10.54

Financial Intermediation

Activities in this sector were captured from the formal and informal financial
intermediaries. On the formal part are the banks and other financial institutions
including insurance companies while the informal intermediaries operate in form
cooperative groups.
The study showed that the contribution of MSMEs to this sector‟s GDP stood at
5.32 per cent in 2010 which reflected that the small scale intermediaries
contributed the highest with 3.10 per cent while the medium and microenterprises contributed 1.24 and 0.97 per cent, respectively.

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May 2012

Figure 57 MSMEs Contribution to Financial Intermediation GDP

Medium
1.24

Micro
0.97

Small
3.1

5.3.9

Real Estate, Renting and Business Activities

The structure of activities in this sector in Nigeria is usually carried out on micro
scale level due to the capital and human resource requirements. Analysis of the
GDP from this sectors showed that MSMEs contribute 99.13 per cent of the total
output from this sector. This dominated by output from micro enterprises which
contributes 80.40 per cent. The data showed that small and medium enterprises
contributed 17.44 and 1.29 per cent, respectively to this sector‟s GDP in 2010.
Figure 58 MSMEs Contribution to Real Estate, Renting & Business Services
GDP

Small
17.44

Medium
1.29

Micro
80.4

5.3.10 Education

The micro, small and medium enterprises (MSMEs) operating in this sector were
found to contribute 48.00 per cent of the education sector GDP. A breakdown of
this ratio shows that medium scale enterprises contributed 25.00 per cent, the104May 2012

small scale enterprises contributed 15.00 per cent and the micro operators
contributed 8.00 per cent.

Figure 59 MSMEs Contribution to Education Sector GDP

Micro
8
Medium25
Small
15

5.3.11 Health and Social Work

The contribution of MSMEs to the total GDP from this sector in 2010 stood at
73.82 per cent which reflected that micro enterprises contributed 23.66 per cent,small enterprises 24.53 per cent and medium scale enterprises 25.63 per cent.
Figure 60 MSMEs Contribution to Health & Social Work GDP

Micro
23.66

Medium
25.63

Small
24.53

105

May 2012

5.3.12 Other Community, Social and Personal Services

Activities covered under sector include most informal service oriented activities
such as barbing saloon, hair-dressing, laundry services, etc. This sector is mostly
controlled by micro scale enterprises which contributed 99.94 per cent to thesector‟s GDP while the small and medium scale enterprises contributed 0.02 percent each resulting in total contribution of 99.98 per cent by MSMEs.
Figure 61 MSMEs Contribution to Other Community, Social & Personal
Services Sector GDP
Small Medium
0.02
0.02

Micro
99.94

106

May 2012

6

KEY FINDINGS, CONCLUSIONS AND POLICY RECOMMENDATIONS

6.1

Key Findings
The key findings as revealed in the 2010 National MSME Survey are as follows:
1. INITIAL START-UP CAPITAL.
The result of the survey shows that the initial start – up capital of microenterprises were predominantly less than fifty thousand Naira (81%). While Smalland Medium enterprises were predominantly less than ten Million Naira,constituting 83.2%.
2. TOTAL NUMBER OF ENTERPRISESThe total number of micro enterprises stood at 17,261,753, Small 21,264 andMedium 1,654, totaling 17,284,671.
3. TOTAL NUMBER OF ENTERPRISES BY SECTOR
The result of the survey revealed that for small and medium enterprises,
manufacturing sector has the highest number of enterprises, comprising 5,939
small enterprises and 713 medium enterprises, totalling 6,652 enterprises. The
lowest number of 134 small enterprises and 33 medium enterprises, totalling
167 enterprises comes from Mining and Quarrying. But for micro enterprises,wholesale/retail trades, repair of motor vehicles and household goods had thehighest record of enterprises (53.2%), while health and social work had the lowest
figure of 0.1%.
4. TOTAL NUMBER OF ENTERPRISES BY STATEThe survey result showed that Lagos State has the highest number of small andmedium enterprises, comprising 4,146 small enterprises and 389 medium
enterprises, totalling 4,535 enterprises.
The lowest number of enterprises is recorded in Bayelsa State with 134 small
enterprises and zero medium enterprise. In terms of micro enterprises, Lagos
state had the highest figure of 880,805 enterprises, followed by Kano (872,552
enterprises), while Abuja (FCT) had the lowest record of (272,579 enterprises).
5. THE MAIN CHALLENGES CONFRONTING THE OPERATIONS OF MSMEs IN
NIGERIA.
The main challenges and constraints confronting the operations of MSMEs in
Nigeria were ranked in order of severity as lack of access to finance, weak107

May 2012

infrastructure and inconsistency of government policies, lack of work space, andmultiple taxation.
6. MSMEs CONTRIBUTION TO EMPLOYMENTThe survey reveals that, a total of 32,414,884 persons were employed by thesector as at December 2010. This consists of 39,478 persons in the small andmedium enterprises, representing 22,139 males (56.1 percent) and 17,339
females (43.9 percent). The micro enterprises employed 32,375,406, comprising
18,662,943 males and 13,712,463 females representing 57.65 percent and42.35 percent respectively.
7. OWNERSHIP STRUCTURE BY GENDER
The female entrepreneurs accounted for 42.1% in the ownership structure asagainst 57.9% for male in micro enterprises. While female accounts for 13.57%
as against 86.43% for male in the Small and Medium Enterprises.
8. OWNERSHIP STRUCTURE BY AGE.
The Age bracket of 36-50years dominates, accounting for 41.6% as against
27.9% for 26-35 years and 6.6% below 25 years of age in the micro enterprises
category. In the small and medium enterprises category, 36 -50 years of age also
dominates, accounting for 43.6% as against of 13.40% for under 36 years of age.
9. SKILLS GAP BY SECTOR
Qualified artisans are predominantly readily available in the education sector(66.9%), followed by Health and Social sector (65.9%) and transport, storage andcommunication sector (56.9%) in the micro enterprises. In the Small and Medium
enterprises, qualified artisans not readily available stood at 46.1%, 40%, 32.0%,
and 30.2% for education, agriculture, Manufacturing and Building/Construction
respectively.
10. CAPACITY UTILIZATION
The average capacity utilization in manufacturing sector is 56.4%, while theaverage in mining and quarrying sector is 49.6%. The mining and quarrying
sector is operating below optimum capacity.
11. PRIORITY AREAS OF ASSISTANCE
The survey revealed three priority areas of assistance to MSMEs as Access tofinance, provision of infrastructure (roads, market, and workspace) adequate andregular power and water supply.

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May 2012

12. OWNERSHIP OF PATENT RIGHTs
About 94.7% of the micro enterprise do not have patent right .Hence theirintellectual property are not protected. In the small and Medium enterprises
category about 64.1% do not have patent right too. They are also ignorant of theavailability of patent information, such patent information will advance andimprove their process and produce know-how making them to be globallycompetitive.
13. BUSINESS INSURANCE OF MSMEs
Only 42.5% of the Small and Medium enterprises are insured, leaving 57.5% asuninsured. In the micro enterprises, about 98.5% are not insured.
14. MEMBERSHIP OF ASSOCIATIONSIn the small and medium enterprises about 61.0% do not belong to any
association while for micro enterprises, 86.5% do not belong to any association.
15. SOURCES OF CAPITAL
The sources of capital for the enterprises are predominantly personal savings,
representing 84.6% for micro enterprises and 54.4% for small and medium
enterprises. Family sources and loan stood at 29.8% and 9.2% respectively forsmall and medium enterprises as against 9.2.% and 29.8% for loan and familysources respectively for micro enterprises.
16. MARKET CHANNEL OF PRODUCTS/SERVICES
The dominant market channel for the enterprises is the same locality, accounting
for 89.8% for micro enterprises and 89.2% for small and medium enterprises.
17. BENEFIACIARY OF SMEDAN SERVICES
Only 2.9% of micro enterprises benefited from SMEDAN services as against 9.5%of Small and Medium enterprises within the period under review.
18. AWARENESS OF SMEDAN
About 5% of the micro enterprises are aware of SMEDAN, while 45.5% of the
Small and Medium enterprises are also aware of SMEDAN .In some states ,theawareness of SMEDAN is very embarrassing recording 100% of non-awareness.
19. BUSINESS REGISTRATION
About 95.3% of the micro enterprises are not registered, while 19.22% of thesmall and medium enterprises are not registered. This calls for mainstreaming theinformal economy into the formal assistance and intervention.

109

May 201220. BUSINESS TURNOVER
82.8% of micro enterprises had turnover below N50, 000.00 in 2009 as against
76.7% percent in 2010, reflecting an improvement of 6.1%. Business turnover ofbetween N50, 000.00 and N1000, 000.00 stood at 11.3% and 14.0% in 2009
and 2010 respectively, representing an increase of 2.7%. While in the small andmedium enterprises, the business turnover of below six million stood at 51.7%
and 78.7% in 2009 and 2010 respectively, an indication of a better performanceof 27% when compared. Turnover of between 6-15 million naira witnessed an
improvement in 2010, representing 14.7% and 7.4% in 2009 and 2010
respectively.
21. PREPARATION OF BUSINESS PLAN
21.76% of the small and medium enterprises do not prepared business plan,
while 55.5% of micro enterprises operate without a business plan.
22. MSMEs CONTRIBUTION TO THE GROSS DOMESTIC PRODUCT(GDP)The survey reveals that MSMEs contributed 46.54 percent to the GDP in nominal
terms as at December 2010. However, other community, social and personal
services, real estate, renting and business activities and agricultural activities
recorded the highest, representing 99.98 percent, 99.13 percent and 98.01
percent respectively. While building, construction and financial intermediation
recorded the lowest, representing 10.76 percent and 5.32 percent respectively.
6.2

Conclusion
The survey covered Micro, Small and Medium enterprises employing 1-199
persons.

The Micro aspect of the survey covered enterprises employing 1-9

person(s) and it is classified as informal sector. The formal sector (Small andMedium) covered enterprises engaging 10-199 persons.
The survey generated a lot of data and the result is no doubt revealing,
considering the key findings. Micro enterprises dominated with highest number ofenterprises, while Small and Medium enterprises result showed strong correlationin the number of enterprises recorded in states like Lagos, Kano to mention but
few.
The immense financial assistance received from the Small and Medium
Enterprise Development Agency of Nigeria (SMEDAN) on the survey did not only

110

May 2012enhanced the capability of the National Bureau of Statistics (NBS) in achieving
high response rate but also gave a lot of credence to the result of the survey. The
calibre of officers used for the exercise accounted for the high achievement.
Adequate publicity was another factor that contributed to the success of thesurvey.
On the other hand, the attitude of some enterprises who delayed theirquestionnaire or outright refusal is regrettable. The adverse consequences ofthese actions are far reaching to the nation in government‟s planning andtransformation programmes for the benefit of the people.

The Government

economic programmes and policy formulation cannot be meaningfully achieved
without reliable data on Micro, Small and Medium Enterprises (MSMEs) in Nigeria.
This baseline survey report which is the first in its series has presented a vivid
statistical report on Micro, Small and Medium Enterprises (MSMEs) activities in
Nigeria in the year 2010. It has revealed relevant statistics on MSMEs. activities.
The report also presents the contribution of MSMEs

to the nation‟s Gross

Domestic Product (GDP). It is expected that useful policy would emerge from the
major findings of this survey. The recommendations made in this report will assist
policy-makers in Nigeria in their ploy to move the economy forward.
Finally, this survey should be sustained in order to have series on economic
indicators.
6.3

Policy Recommendations
1.

A proactive strategy is necessary to address the 6 key constraints faced bythesector:

2.

•

Access to finance•

Weak infrastructure•

Inconsistency of Government Policies•

Lack of work space•

Multiple taxation•

Obsolete technology

There is an urgent need for renewal and upgrading of MSMEs

infrastructure located in the existing Industrial Development Centres through111

May 2012cluster development approach. The development process needs to be
implemented properly and should be strengthened with ample work space andprovision of cluster common infrastructure to enhance their productivity.
3.

MSMEs generally lack the understanding and ability to determine thecompetencies that are required by an employee to fulfil his/her role. These skill
gaps exist in all the sectors. MSMEs will need to invest in training anddevelopment that leads to skill development and job enhancement. Government
through SMEDAN should strive to provide a solution to the skill gaps in the MSME
sub-sector. This makes the issue of capacity building an important area to focus
upon. The building of new and renovation of existing technical colleges is highly
advised.
4.

The competitiveness of any economy depends on how efficient all the

resources in the process of production are utilized and how efficient these aremarketed, hence the entire chain of production has to be efficient. This meansthat the process of production has to be cost efficient and meets quality needs ofthe consumers. The operational cost of MSMEs should be addressed towards
attaining cost efficiency through the use of latest technology. The issue of power
outages and other basic infrastructure such as access roads and transportation
should also be addressed.
5.

Most of the MSMEs do not have patent right and their intellectual property

are not protected. The Ministry of Trade and Investment, SMEDAN and NOTAP
should assist the MSMEs in this regard by setting up an intellectual property
facilitation cell, which will provide a range of intellectual property related services,such as prior art search, patent landscape and interface for technology transfer.
6.

SMEDAN services to MSMEs should be restructured for positive impact.

The Agency should be able to provide a wide spectrum of technical services to the
MSMEs. These should include common facilities for testing, tool room services,
technology up-gradation, modernization, quality improvement, training forentrepreneurship development, a number of training for skill up-gradation,
preparation of project and product profiles, technical and managerial consultancy,

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May 2012

assistance for exports and advocacy to government on issues affecting MSMEs in
Nigeria.
7.

On access to finance by MSMEs, SMEDAN should critically address thisconstraint by evolving a Credit Rating Scheme and Credit Guarantee Scheme forthe sub-sector. This will make financing the sub sector attractive to banks andother investors.
8.

Awareness/information dissemination of SMEDAN and SMEDAN activities

are very poor as revealed by the survey. The current knowledge dissemination
system is limited in its outreach. There is a need to develop a better
communication strategy and use of new age media tools.
9.

Most of the MSMEs are not registered. Hence, creating a huge informal

economy with its adverse implication on Government policies and programmes.
SMEDAN should strive to mainstream these huge informal enterprises to theformal economy.
10.

Most of the sectors are operating below optimum capacity.

should endeavour to enhance their capacity.

113

SMEDAN

May 2012

Appendix
Table 1 Summary of the Activities on Information, Advisory Services andSensitization at the Head Office & Other Centres for the Year 2010
LOCATION
Head Office
BSCs
BICs
Other States
Total

1ST QUARTER
152
444
49
10,262
10,9072ND QUARTER
255
423
65
2,404
3,147

3RD QUARTER
159
182
212
415
968

4TH QUARTER
169
338
47
14,417
14,971

TOTAL
735
1,387
373
27,49829,993

Table 2 Distribution of Workload and Fieldstaff by Zone and State forInformal and Formal Components of the Survey
S/N

ZONE

STATE

NO. Of EAs to
be covered

NO. HHEnterprises tobe covered

No.
Interviewers for
Informal (HHEnterprises)

No. Of
Supervisors for
Informal (HHEnterprises)

No. OfEstablishm
ent to becoveredNo. Of
Intervie
wer forFormalNo. Of
Supervis
ors forformal1.

North Central

Plateau
Benue
Nasarawa
Kogi
Kwara
Niger
FCT Abuja

30
30
30
30
30
30
30

300
300
300
300
300
300
300

4
4
4
4
4
4
4

2
2
2
2
2
2
2

142
54
63
58
51
76
124

7
3
3
3
3
4
6

1
1
1
1
1
1
1

210

2100

28

14

568

29

7

30
30
30
30
30
30

300
300
300
300
300
300

4
4
4
4
4
4

2
2
2
2
2
2

29
29
89
40
55
37

1
1
4
2
3
2

1
1
1
1

180

1800

24

12

279

13

4

Sub-Total
2.

North.
East

Sub-Total

114

Borno
Yobe
BauchiAdamawa
Gombe
TarabaMay 2012

Table 2 Distribution of Workload and Fieldstaff by Zone and State forInformal and Formal Components of the Survey (CONTD)
S/N

ZONE

STATE

NO. Of
EAs to becoveredNO. HHEnterprises
to becoveredNo.
Interviewers
for Informal(HH
Enterprises)

No. Of
Supervisors
for Informal(HH
Enterprises)

No. OfEstablishment
to be covered

No. Of
Interviewer
for Formal

No. Of
Supervisors
for formal

3.

North
West

Kaduna

30

300

4

2

185

9

1

Katsina

30

300

4

2

71

4

1

Kano

30

300

4

2

304

14

2

Kebbi

30

300

4

2

35

2

1

Sokoto

30

300

4

2

85

4

1

Jigawa

30

300

4

2

35

2

1

Zamfara

30

300

4

2

58

3

1

210

2100

28

14

773

38

8

Enugu

30

300

4

2

76

4

1

Abia

30

300

4

2

108

5

1

Ebonyi

30

300

4

2

69

3

1

Imo

30

300

4

2

90

4

1

Anambra

30

300

4

2

103

5

1

150

1500

20

10

446

21

5

Sub-Total
4.

South
East

Sub-Total

115

May 2012

Table 2 Distribution of Workload and Fieldstaff by Zone and State forInformal and Formal Components of the Survey (CONTD)
S/N

ZONE

STATE

No. of EAs
to be
coveredNO. HHEnterprises
to becoveredNo.
Interviewers
for Informal(HH
Enterprises)

No. Of
Supervisors
for Informal(HH
Enterprises)

No. OfEstablishment tobe covered

No. Of
Interviewer
for Formal

No. Of
Supervisors
For formal

5.

SouthSouth

C/River
A/IbomRiversBayelsa
Delta
Edo

30
30
30
30
30
30

300
300
300
300
300
300

4
4
4
4
4
4

2
2
2
2
2
2

67
55
148
20
100
180

3
3
7
1
5
9

1
1
1
1
1

180

1800

24

12

570

28

5

30
30
30
30
30
30

300
300
300
300
300
300

4
4
4
4
4
4

2
2
2
2
2
2

213
92
74
830
41
114

11
5
4
43
2
6

1
1
1
6
1
1

Sub-Total

180

1800

24

12

1364

71

11

Grand Total

1,110

11,100

148

74

4,000

200

40

Sub-Total
6.

South
West

Oyo
Ondo
Osun
Lagos
Ekiti
Ogun

116

May 2012

Table 3 Number of Small and Medium Enterprises by State
STATE

117

Abia
Adamawa
Akwa Ibom
AnambraBauchi
Bayelsa
Benue
Borno
Cross River
23`Delta
Ebonyi
Edo
Ekiti
Enugu
Gombe
Imo
JigawaKadunaKano
Katsina
Kebbi
Kogi
Kwara
Lagos
Nassarawa
Niger
Ogun
Ondo
Osun
Oyo
Plateau
RiversSokoto10 - 49
Number
526
235
275
656
497
134
357
131
318
576
232
899
280
402
225
534
217
1,137
1,740
464
221
328
415
4,146
387
433
506
596
100
1,300
613
662
562

TarabaYobe
Zamfara
FCT
TOTAL

242
150
341
427
21,264

Employment Size Band50 - 199
Percentage Number
Percentage
98.62
7
1.38
95.58
11
4.42
87.48
39
12.52
89.01
81
10.99
91.02
49
8.98
100.00
0
0.00
95.63
16
4.37
77.95
37
22.05
87.02
47
12.98
94.64
33
5.36
94.99
12
5.01
96.83
29
3.17
98.41
5
1.59
93.03
30
6.97
88.02
31
11.98
92.97
40
7.03
93.81
14
6.19
88.72
145
11.28
96.21
69
3.79
86.86
70
13.14
95.13
11
4.87
96.67
11
3.33
93.66
28
6.34
91.43
389
8.57
92.43
32
7.57
90.48
46
9.52
92.73
40
7.27
97.13
18
2.87
100.00
0
0.00
93.26
94
6.74
92.56
49
7.44
91.65
60
8.35
96.68
19
3.32
97.80
96.50
100.00
84.17
92.78

5
5
0
80
1,654

2.20
3.50
0.00
15.83
7.22

TOTAL
534
245
315
737
545
134
374
168
365
608
244
929
285
432
255
574
231
1,282
1,808
535
232
340
443
4,535
418
478
546
614
100
1,394
663
723
581
247
156
341
507
22,918

May 2012

Table 4 Total Number of Small and Medium Enterprises by Sector
SECTOR

10 - 49

50 - 199

TOTAL

Number

Percentage

Number

Percentage

696

92.77

54

7.23

750

134

80.43

33

19.57

167

5,939

89.28

713

10.72

6,652

194

81.13

45

18.87

239

3,916

96.90

125

3.10

4,041

2,088

94.52

121

5.48

2,209

680

83.89

131

16.11

811

2,166

93.22

158

6.78

2,323

908

94.62

52

5.38

960

Education

1,508

93.75

101

6.25

1,608

Health and Social Work

2,542

95.75

113

4.25

2,654

495

97.98

10

2.02

505

21,264

92.78

1,654

7.22

22,918Agriculture, Hunting, Forestry and
Fishing
Mining and Quarrying
Manufacturing
Building and Construction
WholesaleandRetailTrade;

Repair of Motor Vehicles andHousehold goods
Hotels and Restaurants
Transport,

StorageandCommunication
Financial Intermediation
Real

Estate,RentingandBusiness Activities

Other Community, Social andPersonal Service Activities
TOTAL

Mining and Quarrying

Manufacturing

Building andConstruction

Wholesale and Retail
Trade; Repair of Motor
Vehicles and HH

Hotels andRestaurants

Transport, Storage
and Communication

Financial
Intermediation

Real Estate, Renting
and Business
Activities
Education

Health and Social
Work

Other Community,
Social and Personal
Service Activities

Abia
Adamawa
Akwa
Ibom
AnambraBauchi
Bayelsa
Benue
Borno

41
18
23

2
4
0

177
41
68

5
7
2

162
22
37

26
37
32

16
0
22

0
20
39

31
21
21

34
17
17

50
50
50

10
10
5

553
245
315

27
14
0
9
5

0
4
0
0
0

251
81
14
81
61

0
5
5
2
2

88
103
7
74
29

63
79
37
37
11

27
54
11
44
0

39
59
0
39
0

24
7
0
21
3

67
134
50
84
17

188
50
0
0
25

15
26
10
0
15

791
615
134
390
168

118

TOTAL

STATE

Agricultre, Hunting,Forestry and Fishing

Sector

May 2012

Cross
River
Delta
Ebonyi
Edo
Ekiti
Enugu
Gombe
Imo
JigawaKadunaKano
Katsina
Kebbi
Kogi
Kwara
Lagos
Nassarawa
Niger
Ogun
Ondo
Osun
Oyo
Plateau
RiversSokotoTarabaYobe
Zamfara
FCT
TOTAL

9

5

81

2

59

63

11

39

10

17

88

10

395

41
14
14
14
50
32
27
9
45
45
32
27
18
5
72
23
5
18
5
0
32
0
5
18
14
14
45
5

0
13
56
0
2
24
2
0
2
9
0
0
0
0
9
5
0
2
4
0
7
16
0
4
0
0
0
0

109
75
224
95
34
54
88
102
272
978
143
68
88
68
1,195
143
197
122
149
68
272
20
156
170
75
34
81
75

2
0
9
0
11
9
5
5
29
11
7
2
0
5
36
2
0
2
7
0
20
11
18
11
0
0
5
2

74
44
125
59
88
74
96
15
287
427
132
81
22
59
545
118
66
81
140
22
294
155
140
191
22
22
169
81

79
21
126
11
47
16
47
21
116
121
47
37
53
26
295
42
79
58
68
0
121
142
95
37
16
26
11
132

16
16
49
0
27
5
27
16
33
60
71
0
11
33
71
0
27
5
11
0
54
5
27
11
5
16
27
27

158
20
158
20
59
20
79
0
177
0
20
0
79
177
335
39
20
98
98
0
177
39
138
59
20
39
20
39

14
10
38
7
21
17
52
0
76
45
17
7
17
24
200
10
14
14
31
10
110
28
10
10
0
3
10
55

50
34
17
50
34
0
34
34
34
17
67
0
0
50
452
0
67
34
0
0
117
50
34
34
34
0
0
34

100
0
138
25
75
0
125
25
200
50
0
25
63
0
526
50
13
113
113
0
200
175
100
50
63
0
0
38

5
41
20
5
0
5
10
5
26
66
10
0
0
0
128
0
5
46
20
0
61
20
15
5
0
5
0
26

768

168

6,009

239

4,210

2,272

838

2,323

987

1,709

2,767

627

647
287
973
285
448
255
591
231
1,295
1,829
546
247
350
446
3,862
432
492
593
646
100
1,467
663
738
600
247
160
368
512
22,918

Table 5 Number of Enterprise by State and Sector

Table 6 Initial Start-Up Capital

119

Total Capital (N Million)

No. of Enterprises

Percentage

Below 10

17,19983.2

10 – 20

1,441

7.0

21 – 30414

2.0

31 – 40147

0.7

41 – 50358

1.7

Above 50

1,120

5.4

TOTAL

20,679100.0

May 2012

Table 7 Initial Start-Up Capital by Sector
Below 10

10 - 20

21 - 30

31 - 40

41 – 50

Above 50
Num.

Total

Million Naira
Sector

Num.

Perce
ntage

Num.

Perce
ntage

Nu
m.

Percentage

Num.

Percentage

Num.

Percenta
ge

Perce
ntage

Agriculture,
Hunting, Forestry
and Fishing

588

83.9

50

7.1

9

1.3

9

1.3

5

0.6

41

5.8

701

Mining and
Quarrying
Manufacturing

145

86.0

18

10.8

0

0.0

0

0.0

0

0.0

5

3.2

168

4,902

85.7

394

6.9

48

0.8

14

0.2

61

1.1

299

5.2

5,717

158

79.5

23

11.4

0

0.0

0

0.0

5

2.3

14

6.8

198

3,503

88.5

199

5.0

52

1.3

29

0.7

22

0.6

155

3.9

3,960

Hotels andRestaurants
Transport,
Storage andCommunication
Financial
Intermediation
Real Estate,
Renting andBusiness
Activities
Education

1,489

74.9

205

10.3

84

4.2

32

1.6

68

3.4

110

5.6

1,988

549

75.9

82

11.3

11

1.5

11

1.5

11

1.5

60

8.3

724

1,260

59.3

335

15.7

118

5.6

0

0.0

118

5.6

295

13.9

2,127

712

86.6

41

5.0

10

1.3

7

0.8

10

1.3

41

5.0

822

1,307

90.7

0

0.0

17

1.2

34

2.3

34

2.3

50

3.5

1,441

Health and Social
Work
Other Community,
Social andPersonal Service
Activities
TOTAL

2,041

90.6

75

3.3

50

2.2

13

0.6

25

1.1

50

2.2

2,254

546

93.9

20

3.5

15

2.6

0

0.0

0

0.0

0

0.0

581

17,19
9

83.2

1,441

7.0

414

2.0

147

0.7

358

1.7

1,120

5.4

20,68
0

Building andConstruction
Wholesale andRetail Trade;
Repair of Motor
Vehicles and HH

Table 8 Total Capital by Enterprises as at December 2010 ( national)
Total Capital (N‟Million)

120

Total No Of Enterprises

Percentage

Below 10
10 – 20

14,231
2541

68.9
12.3

21 – 30
31. 40

1028
581

5.0
2.8

41 – 50
Above 50

315
1967

1.5
9.5

May 2012

Table 9 Total Capital by State as at December 2010

STATE
Abia
Adamawa
Akwa Ibom
AnambraBauchi
Bayelsa
Benue
Borno

Below 10
10 - 20
21 - 30
31 - 40
41 - 50
Above 50
Percent
Percent
Percent
Percent
Percent
Percent
Num.
age
Num.
age
Num.
age Num.
age
Num.
age
Num.
age
TOTAL
455
86.7
41
7.8
22
4.2
0
0.0
5
0.9
2
0.4
525
148
63.0
25
10.5
12
4.9
17
7.3
0
0.0
34
14.3
235
187
71.7
5
2.1
7
2.6
0
0.0
0
0.0
61
23.6
261
499
63.7
108
13.8
54
6.9
25
3.2
17
2.2
81
10.3
784
361
77.1
12
2.6
12
2.6
20
4.2
7
1.6
56
11.9
468
88
82.8
8
7.1
0
0.0
5
5.0
5
5.1
0
0.0
106
274
70.3
47
12.1
11
2.8
11
2.7
20
5.0
28
7.1
390
97
67.8
16
11.0
17
11.7
14
9.5
0
0.0
0
0.0
143

Cross River
272
Delta
304
Ebonyi
187
Edo
714
Ekiti
141
Enugu
198
Gombe
130
Imo
451
Jigawa189
Kaduna
527
Kano
1,519
Katsina
398
Kebbi
186
Kogi
225
Kwara
137
Lagos
2,287
Nassarawa
379
Niger
366
Ogun
436
Ondo
435
Osun
87
Oyo
864
Plateau
354
Rivers279
Sokoto399
Taraba91
Yobe
107
Zamfara
331
FCT
129
TOTAL
14,231

74.6
43
53.7
103
73.8
19
74.5
51
52.8
74
60.2
36
50.9
68
76.2
57
81.6
36
52.9
103
87.0
123
73.5
24
75.4
29
66.7
69
36.2
122
62.1
518
90.0
32
85.2
46
77.8
48
72.5
104
86.5
7
77.6
113
55.4
189
51.3
73
67.7
44
48.7
30
81.1
20
91.6
12
39.2
89
68.9 2,541

11.8
0
18.2
53
7.4
5
5.3
77
27.6
28
11.0
24
26.5
7
9.6
16
15.5
0
10.4
118
7.0
34
4.5
37
11.8
0
20.5
0
32.2
47
14.1
159
7.5
0
10.7
5
8.5
26
17.3
7
6.8
0
10.1
67
29.6
32
13.3
69
7.5
29
15.7
53
14.9
0
3.3
0
27.1
0
12.3 1,028

0.0
9.3
2.1
8.0
10.6
7.3
2.9
2.7
0.0
11.8
1.9
6.9
0.0
0.0
12.4
4.3
0.0
1.3
4.7
1.2
0.0
6.0
5.0
12.8
4.9
28.3
0.0
0.0
0.0
5.0

7
20
7
42
20
20
14
17
0
33
20
45
5
35
33
82
0
0
0
14
0
25
14
14
14
7
0
0
3

1.9
3.5
2.9
4.4
7.4
6.0
5.3
2.8
0.0
3.3
1.1
8.4
1.8
10.3
8.8
2.2
0.0
0.0
0.0
2.4
0.0
2.2
2.2
2.5
2.4
3.6
0.0
0.0
1.0
2.8

581

5
18
5
13
0
0
0
20
0
32
11
0
11
5
5
79
0
0
11
7
0
7
13
0
8
0
0
0
13

1.4
38
3.1
69
1.8
30
1.3
62
0.0
5
0.0
51
0.0
37
3.3
32
0.0
7
3.2
184
0.6
41
0.0
36
4.6
16
1.6
3
1.4
34
2.1
556
0.0
11
0.0
12
1.9
40
1.2
32
0.0
7
0.6
38
2.0
36
0.0
109
1.4
95
0.0
7
0.0
5
0.0
19
3.8
95
1.5 1,967

315

10.3
12.3
12.0
6.4
1.7
15.5
14.4
5.3
2.9
18.5
2.3
6.7
6.4
1.0
9.1
15.1
2.5
2.8
7.1
5.3
6.8
3.4
5.7
20.1
16.1
3.6
4.0
5.2
28.8
9.5

364
566
253
959
267
330
255
591
231
997
1,746
541
247
338
378
3,680
421
430
560
600
100
1,113
638
544
589
188
132
361
330
20,662

Table 10 Total Capital by Sector as at December 2010

SectorBelow 10Num.

10 - 20

21 - 30

Num.

Perce
ntage

Num.

41 - 50

Above 50

Perce
ntage

Num
.

Percentage

Num.

Percenta
ge

Num.

Total

Agriculture,
Hunting,
Forestry and
Fishing
Mining and
Quarrying

520

74.2

59

8.4

27

3.9

18

2.6

18

2.6

59

Perc
enta
ge
8.4

130

77.4

16

9.7

5

3.2

11

6.5

2

1.1

4

2.2

168

Manufacturing

4,189

73.4

591

10.3

170

3.0

136

2.4

61

1.1

564

9.9

5,710

121

Percentage

31 - 40701

May 2012

Building andConstruction

108

54.5

36

18.2

5

2.3

11

5.7

2

1.1

36

18.2

198

Wholesale andRetail Trade;
Repair of Motor
Vehicles and
HH

3,069

77.5

316

8.0

155

3.9

52

1.3

66

1.7

302

7.6

3,960

Hotels andRestaurants

1,241

62.4

352

17.7

79

4.0

68

3.4

63

3.2

184

9.3

1,988

Transport,
Storage andCommunication
Financial
Intermediation

441

61.8

103

14.5

44

6.1

27

3.8

27

3.8

71

9.9

713

571

26.9

473

22.2

413

19.4

177

8.3

59

2.8

433

20.4

2,127

Real Estate,
Renting andBusiness
Activities

612

74.5

100

12.1

17

2.1

14

1.7

3

0.4

76

9.2

822

Education

1,055

73.3

151

10.5

84

5.8

17

1.2

0

0.0

134

9.3

1,441

Health andSocial Work

1,753

77.8

313

13.9

25

1.1

50

2.2

13

0.6

100

4.4

2,254

Other
Community,
Social andPersonal
Service
Activities
TOTAL

541

93.0

31

5.3

5

0.9

0

0.0

0

0.0

5

0.9

581

14,23
1

68.9

2,541

12.3

1,028

5.0

581

2.8

315

1.5

1,967

9.5

20,662

Table 11 Ownership Status

122

Form of Ownership

Number

Percent

Sole Proprietorship

13,16957.5

Partnership

1,898

8.3

Private Limited Liability

6,239

27.2

Cooperative

298

1.3

Faith Based Organisation

1,081

4.7

Others

233

1.0

Total

22,918100.0

May 2012

Table 12 Ownership Status by Sector
SECTOR

Sole
Proprietorship

Partnership

PrivateLiability

LimitedCooperative

Religious Organisation

Others

Num.

Num.

Num.

Percentage

Num.

Percen
tage

Num.

Perce
ntage

Num.

Percentage

Percentage

Percentage

TOTAL

Agriculture, Hunting,Forestry and Fishing

533

4.1

36

1.9

163

2.6

32

10.6

5

0.4

0

0.0

768

Mining and Quarrying

98

0.7

16

0.9

40

0.6

13

4.3

0

0.0

2

0.8

168

3,741

28.4

428

22.5

1,630

26.1

61

20.5

122

11.3

27

11.6

6,652

86

0.6

32

1.7

115

1.8

7

2.3

0

0.0

0

0.0

239

Wholesale and Retail
Trade; Repair of Motor
Vehicles and HH

2,878

21.9

397

20.9

824

13.2

15

4.9

66

6.1

29

12.6

4,041

Hotels and Restaurants

1,441

10.9

195

10.3

552

8.9

0

0.0

68

6.3

16

6.8

2,272

Transport, Storage andCommunication

397

3.0

82

4.3

283

4.5

11

3.7

54

5.0

11

4.7

838

Financial Intermediation

295

2.2

118

6.2

1,556

24.9

118

39.6

177

16.4

59

25.3

2,323

Real Estate, Renting andBusiness Activities

516

3.9

127

6.7

303

4.9

7

2.3

17

1.6

17

7.4

987

Education

1,139

8.6

201

10.6

184

3.0

0

0.0

168

15.5

17

7.2

1,709

Health and Social Work

1,565

11.9

225

11.9

513

8.2

25

8.4

388

35.9

50

21.5

2,767

Other Community, Socialand Personal Service
Activities

479.4

3.6

40.8

2.1

76.5

1.2

10.2

3.4

15.3

1.4

5.1

2.2

627

TOTAL

13,16
9

100.0

1,898

100.0

6,239

100.0

298

100.0

1,081

100.0

233

100.0

22,918Manufacturing
Building and Construction

Table 13 Gender of Owner (Sole Proprietorship)
Sector123

Male

FemaleTotal

Number

Percentage

Number

Percentage

Agriculture, Hunting, Forestry and Fishing

488

92.31

41

7.69

529

Mining and Quarrying

96

98.15

2

1.85

98

Manufacturing

3,565

93.09

265

6.91

3,830

Building and Construction

83

97.37

2

2.63

86

Wholesale and Retail Trade; Repair of Motor
Vehicles and HH

2,576

89.51

302

10.49

2,878

Hotels and Restaurants

1,099

76.56

337

23.44

1,436

Transport, Storage and Communication

386

97.26

11

2.74

397

Financial Intermediation

256

92.86

20

7.14

276

Real Estate, Renting and Business Activities

468

90.67

48

9.33

516

Education

687

62.12

419

37.88

1,106

Health and Social Work

1,377

89.43

163

10.57

1,540

May 2012

Other Community, Social and Personal Service
Activities

301

62.77

179

37.23

479

TOTAL

11,383

86.43

1,787

13.57

13,169

Table 14 Age of Owner (Sole Proprietorship)
AgeFrequency

Percent

Below 2077

0.6

20 - 25131

1.0

26 - 35

1,570

11.9

36 - 50

5,742

43.6

51 - 60

3,538

26.9

Above 60

2,112

16.0

Total

13,169100.0

Table 15 Highest Qualification Attained by Owner
Form of Ownership

Number

Percent

1,179

9.0

Non Formal Education

428

3.2

Primary School

1,347

10.2

Secondary

2,805

21.3

Technical

299

2.3

NCE/ND

1,692

12.8

B.Sc/HND

4,063

30.9

Post-Graduate

1,356

10.3

Total

13,169100.0

No Education

Table 16 Initial Total Assets at Inception

124

Amount (N'Million)

Number

Percentage

Below 10

15,77678.5

10 – 20

1,582

7.9

21 – 30411

2.0

31 – 40226

1.1

May 201241 – 50453

2.3

Above 50

1,637

8.2

Total

20,085100.0

Table 17 Total Asset Value as at December 2010
Amount (N'Million)

Number

Percentage

Below 10

13,31666.1

10 – 25

2,491

12.4

26 – 45792

3.9

46 – 65667

3.3

66 – 85450

2.2

Above 85

2,444

12.1

Total

20,160100.0

SourceNumber

Percentage

Personal Savings

15,028

54.4

Loan

6,091

22.0

Family Source

5121

16.7

Cooperative/Esusu

1,405

5.1

Parents

259

0.9

Friends

243

0.9

Total

27,645100.0

Table 18 Source of Capital

Table 19 Business Monthly Sales (Turnover) 2009125

Amount (N'Million)

Number

Percentage

Below 6

10,06451.7

6 – 15

2,870

14.7

16 – 25

1,092

5.6

26 – 35794

4.1

36 – 45463

2.4

Above 45

4,196

21.5

Total

19,479100.0

May 2012

Table 20 Business Monthly Sales (Turnover) 2010
Amount (N'Million)

Number

Percentage

Below 6

15,86678.7

6 – 15

1,497

7.4

16 – 25581

2.9

26 – 35
36 – 45

407
215

2.0
1.1

Above 45

1,590

7.9

Total

20,156

100.0

Table 21 Business Monthly Cost of Operation
Amount (N'million)

Number

Percentage

Below 6

17,72689.2

6 – 151,038

5.2

16 – 25270

1.4

26 – 35147

0.7

36 – 4572

0.4

Above 45

610

3.1

Total

19,863100.0

Table 22 Promotional Media by the Enterprise

126

Promotional Media

Number

Percentage

Television

4,246

12.8

Newspaper Advertisement

3,782

11.4

Handbill Distribution

5,775

17.4

Person-to-Person

8,318

25.0

Radio Advertisement

4,730

14.2

Billboard

3,799

11.4

Business Card

1,010

3.0

Label

463

1.4

Trade Fair

468

1.4

Sales Promotion

363

1.1

Sales Discount

322

1.0

Total

33,276100.0

May 2012

Table 23 Business Insurance
SECTOR

INSUREDNOT INSURED

TOTAL

Number

Percentage

Number

Percentage

Agricultre, Hunting, Forestry and Fishing

235

30.6

533

69.4

768

Mining and Quarrying

36

21.5

132

78.5

168

Manufacturing

2,173

36.2

3,836

63.8

6,009

Building and Construction

108

45.3

131

54.7

239

Wholesale and Retail Trade; Repair of Motor

1,369

32.5

2,841

67.5

4,210

Hotels and Restaurants

1,120

49.3

1,152

50.7

2,272

Transport, Storage and Communication

403

48.1

435

51.9

838

Financial Intermediation

1,969

84.7

354

15.3

2,323

Real Estate, Renting and Business Activities

358

36.2

630

63.8

987

Education

553

32.4

1,156

67.6

1,709

Health and Social Work

1,290

46.6

1,477

53.4

2,767

Other Community, Social and Personal Service

128

20.3

500

79.7

627

9,741

42.5

13,17757.5

22,918

Vehicles and Household goods

Activities
TOTAL

127

May 2012

Table 24 Daily Useage of Alternative Source of Power
Sector

1 - 5 Hours

6 - 10 Hours

11 - 15 Hours

16 - 20 Hours

Num.

Percentage

Num.

Percentage

Num.

Percentage

Num.

Percentage

Agriculture, Hunting,Forestry and Fishing
Mining and Quarrying

303

39.4

226

29.4

131

17.1

108

14.1

768

62

36.6

67

39.8

16

9.7

24

14.0

168

Manufacturing

2,166

36.0

2,247

37.4

801

13.3

794

13.2

6,009

Building andConstruction

81

34.0

97

40.6

29

12.3

32

13.2

239

Wholesale and Retail
Trade; Repair of Motor
Vehicles andHousehold goods

2,046

48.6

1,501

35.7

383

9.1

280

6.6

4,210

Hotels andRestaurants

573

25.2

700

30.8

579

25.5

421

18.5

2,272

Transport, Storage andCommunication

473

56.5

245

29.2

38

4.5

82

9.7

838

Financial
Intermediation
Real Estate, Renting
and Business Activities

906

39.0

906

39.0

256

11.0

256

11.0

2,323

399

40.4

402

40.8

124

12.5

62

6.3

987

Education

972

56.9

486

28.4

184

10.8

67

3.9

1,709

Health and Social
Work
Other Community,
Social and Personal
Service Activities
TOTAL

889

32.1

876

31.7

426

15.4

576

20.8

2,767

255

40.7

240

38.2

87

13.8

46

7.3

627

9,124

39.8

7,993

34.9

3,054

13.3

2,747

12.0

22,918

Table 25 Employment by Sex as at Commencement of Business
SEX

128

10 – 49

50 - 199

Total

Number

Percentage

Number

Percentage

Male21,346

96.6

760

3.4

22,106

Female15,512

97.6

378

2.4

15,890TOTAL

36,858

97.0

1,138

3.0

37,996

Total

May 2012

Table 26 Employment by Sector as at Commencement
SectorMALE

FEMALE

10 - 49Num.

50 – 199
Percent

Num.

age
Agricultre, Hunting,

Total

Percent

Total

10 - 49Num.

age

50 - 199
Percent

Num.

age

Percent
age

705

96.9

23

3.1

728

470

96.30

18

3.70

488

147

88.0

20

12.0

167

116

95.52

5

4.48

121

Manufacturing

5,534

94.3

333

5.7

5,867

3,198

96.12

129

3.88

3327

Building and

212

88.7

27

11.3

239

133

100.00

0

0.00

133

3,923

97.6

96

2.4

4,019

2,370

98.17

44

1.83

2414

2,172

97.6

53

2.4

2,225

1,936

99.46

11

0.54

1946

772

93.4

54

6.6

827

462

95.51

22

4.49

484

2,225

98.3

39

1.7

2,264

1,851

96.91

59

3.09

1910

932

96.8

31

3.2

963

722

99.06

7

0.94

729

Education

1,625

99.0

17

1.0

1,642

1,508

97.83

34

2.17

1541

Health and Social

2,579

97.6

63

2.4

2,642

2,329

97.89

50

2.11

2379

520

99.0

5

1.0

525

418

100.00

0

0.00

418

21,34

96.6

760

3.4

22,10

15,512

97.62

378

2.38

15891

Forestry and
Fishing
Mining and
Quarrying

Construction
Wholesale andRetail Trade;
Repair of Motor
Vehicles and HH
Hotels andRestaurants
Transport, StorageandCommunication
Financial
Intermediation
Real Estate,
Renting andBusiness Activities

Work
Other Community,
Social andPersonal Service
Activities
TOTAL

6

129

6

May 2012

Table 27 Employment by Sex as at December 2010
SEX

10 – 49

50 - 199

Total

Number

Percentage

Number

Percentage

Male

20,485

92.5

1,654

7.5

22,139Female16,326

94.2

1,013

5.8

17,339TOTAL

36,811

93.2

2,667

6.8

39,478

Table 28 Employment by Sector as December 2010
SectorMALE

FEMALE

10 - 49Num.

50 – 199
Percent

Num.

age

Total
Percent

M+F

10 - 49Num.

age

50 – 199
Percentag

Num.

e

Total
Percenta

TOTAL

ge

Agriculture,
Hunting, Forestry
and Fishing

696

92.8

54

7.2

750

457

99.02

5

0.98

461

1,211

Mining and
Quarrying

134

80.4

33

19.6

167

121

95.71

5

4.29

127

293

Manufacturing

5,160

87.9

713

12.1

5,873

3,504

91.98

306

8.02

3,809

9,683

Building andConstruction

194

81.1

45

18.9

239

151

94.37

9

5.63

160

398

Wholesale andRetail Trade;
Repair of Motor
Vehicles and HH

3,916

96.9

125

3.1

4,041

2,635

98.08

52

1.92

2,686

6,727

Hotels andRestaurants
Transport,
Storage andCommunication

2,088

94.5

121

5.5

2,209

1,999

96.20

79

3.80

2,078

4,287

680

83.9

131

16.1

811

473

93.55

33

6.45

506

1,316

Financial
Intermediation
Real Estate,
Renting andBusiness
Activities
Education

2,166

93.2

158

6.8

2,323

1,910

91.51

177

8.49

2,087

4,411

908

94.6

52

5.4

960

777

98.69

10

1.31

788

1,748

1,508

93.8

101

6.3

1,608

1,524

93.81

101

6.19

1,625

3,233

Health and Social
Work
Other Community,
Social andPersonal Service
Activities
TOTAL

2,542

95.8

113

4.2

2,654

2,341

90.78

238

9.22

2,579

5,233

495

98.0

10

2.0

505

434

100.00

0

0.00

434

938

20,48

92.5

1,654

7.5

22,139

16,32

94.15

1,013

5.85

17,33939,4785130

6May 2012

Table 29 Educational Qualification of Employees
Educational Qualification

Number

Percentage

Primary School

12,615

16.12

Secondary School

16,944

21.65

Technical

9,151

11.69

NCE/ND

12,884

16.46

BSC/HND

11,954

15.27

Post-Graduate

5,586

7.14

Non-Formal Education

4,770

6.10

No Education

4,359

5.57

TOTAL

78,262100.0

Table 30 Market Channel of Product(s)Market Channel

Number

Percentage

Same Locality

7,944

24.5

Same Town

6,417

19.8

Same State

6,895

21.2

Nigeria Only

7,701

23.7

ECOWAS State

1,234

3.8

Africa Only

667

2.1

World Wide

1,625

5.0

TOTAL

32,483100.0

Table 31 Export of Products/Services

131

Item

Number

Percentage

Yes

603

2.63

No

22,315

97.37

Total

22,918100.00

May 2012

Table 32 Business Association
Business Association

Number

Percentage

None13,97561.0

Trade Association

4,914

21.4

Professional Association

2,919

12.7

Cooperative Society

545

2.4

Faith Based Organisation

511

2.2

Others

54

0.2

Total

22,918100.0

Table 33 Business Patent Right by Sector
SECTORPATENT RIGHTNO PATENT RIGHT

Number

Percentage

Number

Percentage

231

30.0

538

70.0

768

Mining and Quarrying

105

62.4

63

37.6

168

Manufacturing

2,207

36.7

3,802

63.3

6,009

Building and Construction

99

41.5

140

58.5

239

Wholesale and Retail Trade; Repair

1,340

31.8

2,870

68.2

4,210

Hotels and Restaurants

957

42.1

1,315

57.9

2,272

Transport, Storage and

316

37.7

522

62.3

838

Financial Intermediation

886

38.1

1,437

61.9

2,323

Real Estate, Renting and Business

282

28.6

705

71.4

987

Education

486

28.4

1,223

71.6

1,709

Health and Social Work

1,164

42.1

1,603

57.9

2,767

Other Community, Social and

153

24.4

474

75.6

627

8,225

35.9

14,69364.1

22,918Agriculture, Hunting, Forestry and

TOTAL

Fishingof Motor Vehicles and HHCommunication

Activities

Personal Service Activities
TOTAL

132

May 2012

Table 34 Own Patent Right by Form of Ownership
Form of Ownership
PATENT RIGHTNO PATENT RIGHT

TOTAL

Number

Percent

Number

Percent

Sole Proprietorship

4,517

34.3

8,652

65.7

13,169Partnership

854

45.0

1,044

55.0

1,898

Private Limited Liability

2,189

35.1

4,050

64.9

6,239

Cooperative

155

51.9

143

48.1

298

Faith Based Organisation

437

40.5

644

59.5

1,081

Others

73

31.5

160

68.5

233

Total

8,225

35.9

14,69364.1

22,918

Table 35 Registered Patent Right by Sector
SECTORTOTALPATENT RIGHTNO PATENT RIGHT

Number

Percentage

Number

Percentage

Agriculture, Hunting, Forestry and Fishing

231

30.0

538

70.0

768

Mining and Quarrying

105

62.4

63

37.6

168

Manufacturing

2,207

36.7

3,802

63.3

6,009

Building and Construction

99

41.5

140

58.5

239

Wholesale and Retail Trade; Repair of Motor
Vehicles and HH

1,340

31.8

2,870

68.2

4,210

Hotels and Restaurants

957

42.1

1,315

57.9

2,272

37.7

522

62.3

838

Transport, Storage and Communication

316

Financial Intermediation

886

38.1

1,437

61.9

2,323

Real Estate, Renting and Business Activities

282

28.6

705

71.4

987

Education

486

28.4

1,223

71.6

1,709

Health and Social Work

1,164

42.1

1,603

57.9

2,767

Other Community, Social and Personal Service
Activities

153

24.4

474

75.6

627

TOTAL

8,225

35.9

14,69364.1

22,918133

May 2012

Table 36 Own Patent Right by Form of Ownership
Form of OwnershipPatent Right Registered

No Patent Right Registered

Total

Number

Percentage

Number

Percentage

Sole Proprietorship

3,843

84.7

693

15.3

4,536

Partnership

735

86.8

112

13.2

847

Private Limited Liability

2,026

93.0

151

7.0

2,177

Cooperative

149

96.2

6

3.8

155

Faith Based Organisation

418

95.6

19

4.4

437

Others

73

100.0

0

0.0

73

TOTAL

7,244

88.1

981

11.9

8,225

Table 37 Skills Gap by Sector
SECTOR

Qualified Artisans Readily
Available
NumberNumberTOTAL

Percentage

Agriculture, Hunting, Forestry and
Fishing

461

60.0

307

40.0

768

Mining and Quarrying

136

80.6

33

19.4

168

4,088

68.0

1,922

32.0

6,009

167

69.8

72

30.2

239

Wholesale and Retail Trade;
Repair of Motor Vehicles and HH

2,495

59.3

1,715

40.7

4,210

Hotels and Restaurants

1,578

69.4

694

30.6

2,272

Transport, Storage andCommunication

549

65.6

288

34.4

838

Financial Intermediation

1,300

55.9

1,024

44.1

2,323

Real Estate, Renting and Business
Activities

568

57.5

420

42.5

987

Education

921

53.9

787

46.1

1,709

1,903

68.8

864

31.2

2,767

428

68.3

199

31.7

627

14,593

63.7

8,325

36.3

22,918Manufacturing
Building and Construction

Health and Social Work
Other Community, Social andPersonal Service Activities
TOTAL

134

Percentage

Qualified Artisans Not
Readily Available

May 2012

Table 38 Skills Gap by Form of Ownership
Form of Ownership

Qualified Artisans

Qualified Artisans Not

TOTAL

Readily Available

Readily Available

Number

Percent

Number

Percent

Sole Proprietorship

8,246

62.6

4,923

37.4

13,169Partnership

1,238

65.2

660

34.8

1,898

Private Limited Liability

4,180

67.0

2,059

33.0

6,239

Cooperative

176

59.0

122

41.0

298

Faith Based Organisation

618

57.1

463

42.9

1,081

Others

136

58.1

98

41.9

233

TOTAL

14,593

63.7

8,325

36.3

22,918

Table 39 Major Government Policy That Affect Businesses Most Favourably
PolicyMost Favourable Policy
Number

Percentage

Environment Sanitary

1,307

20.2

Road Maintenance

1,366

21.1

Importation of raw materials

341

5.3

Job creation

189

2.9

Taxation

308

4.8

Exchange rate

167

2.6

Intervention Fund

296

4.6

Power supply

461

7.1

Political stability

726

11.2

Banking reform

282

4.4

Fertilizer production

175

2.7

853

13.2

6,471

100.0

No Response

Total

Table 40 Major Government Policy That Affect Businesses Most
Unfavourably
PolicyMost Unfavourable Policy
NumberPower supply

135

Percent
2,161

18.50

May 2012

Taxes
Demolition

3,922
429

33.58
3.67

Traffic Control
Environmental Sanitation
Infrastructure/Social Amenities
Importation of Fuel

218
154
922
892

1.87
1.32
7.89
7.64

Trade Permit
Withdrawal of Subsidies

407
858

3.48
7.35

Introduction of Sharia

282

2.42

Poverty Alleviation

213
90

Custom Duties
Banning of Importation of goods
Interest Rate
Pension

160
599
194

1.83
0.77
1.37
5.13
1.66

Embargo on Loan Facilities

178

1.52

11,679100.00

Total

Table 41 Top Priority Areas of Assistance
Item

Percentage

Provide financial institutions

2,570

5.7

Adequate transport facilities

3,919

8.7

Adequate and regular power and water supply

7,045

15.6

Reduced rate of taxation

1,483

3.3

Reduced care for medical treatment

649

1.4

Reduced interest rate

927

2.1

Regular fuel supply at approved rate

359

0.8

Financing/Financial assistance

11,151

24.7

Provide farm inputs ((seeding, equipment, fertilizer etc)

3,150

7.0

618

1.4

Provision of infrastructure (access roads, market, work space

8,600

19.0

Provide security

2,131

4.7

Provision of equipment spare parts/raw materials

2,556

5.7

TOTAL

45,159100.0

Facilitate quality product136

Number

May 2012

Weighted Capacity

Capacity Utilized

Unit ofMeasurement

Installed Capacity

Number of
Establishments

Fish fillets, other fish meal and fish
livers and roes, fresh or chilled

7Kg

33,964

16,35448.15

337.06

Fish, fish fillets, other fish meat and fish
livers and roes, frozen

7

Kg

197

100

50.78

355.49Fruit juices and vegetable juices

7

Liters

40,76939,76997.55

682.83Palm, coconut, palm kernel, babassu
and linseed oil, crude
Palm coconut, palm kernel, babassu andlinseed oil and their fractions, refined
but not chemically modified; castor tungand jojoa oil and fixed vegetable fats andoils
Processed liquid milk

7

Liters

500

204

40.74

285.1854

Liters

5,097,314

4,957,675

97.26

5,252.07

7

Liters

13,580

9,778

72.00

504.00Milk and cream in solid forms

14Kg

3,802,828

1,093,190

28.75

402.45

Yoghurt and other fermented or acidifeid
milk and cream
Ice cream and other edible ice

7

Liters

25,58013,58053.09

371.62

14

Liters3,566,448

3,160,446

88.62

1,240.63

Cereal flours other than of wheat or
meslinrice, semi or wholly milled20

Kg

2,707,248

1,707,248

63.06

1,261.24

41

Kg

77,068,673

13,826,070

17.94

735.54

Starches; inulin; wheat gluten; dexrins
and other modified starches
Tapioca and substitutes thereof
prepared from starch, in the form of
flakes, grains, siftings or similar forms
Preparations used in animal feeding
n.e.c
Gingerbread and other bakers' wares

7

Kg

1,344,420

1,222,200

90.91

636.3620

Kg

1,873,938

847,85845.24

904.8920

M/Tons

115,430

61,11052.94

1,058.82

7

M/Tons

500

340

67.90

475.30

Other bread and other bakers' wares

448

Kg

18,453,977

8,054,569

43.65

19,553.76

Refined cane or beet sugar andchemically pure sucrose, in solid form,
not containing added flavouring or
colouring matter
Other food products

14

M/Tons

98,79549,90750.52

707.22

34

M/Tons377,443

141,41737.47

1,273.88

Ethyl alcohol and other spirits,
denatured, of any strenght
Waters (including mineral waters andaerated waters), not sweetned nor
flavoured, except natural water; ice andsnow
Other non-alcoholic beverages

14

Hect

183,615

89,47948.73

682.24319

Liters24,659,358

21,417,466

86.85

27,706.20

34

Hect

3,140,375

2,897,972

92.28

3,137.56

Cotton, carded or combed

7

5,000

1,019

20.37

142.59Cotton sewing thread

27

1,000

598

59.75

1,613.30

Woven fabrics or cotton

7

500

333

66.54

465.79woven fabrics of man-made staple fivres,containing less than 85% of such fibres,
mixed mainly or solely with cotton

7

Sq
Meter
Sq
Meter
Sq
Meter
Sq
Meter

577,626

177,21930.68

214.76

Product Label137

Quantity Produced

Table 42 Capacity Utilization in Manufacturing

May 2012

138

Carpets and other tectle floor coverings,
tuftedTwine, cordage, rope and cabies

7

Wearing apparel, of textile fabric, notknitted or crocheted; brassieres,
coresets, suspenders and similar
articles, whether or not knitted orcrocheted
Luggage, handbags and the like, ofleather, composition leather, plastic
sheeting, textile materials, vulcanizedfibre or paperboard; travel sets for
personal toilet sewing or shoe or clothes
cleaning
Footwear with outer soles and uppers of
rubber orplastics, other than waterprrof
footwear, sports footwear and footwear
incorporating a protective metal toe-cap
Footwear with uppers of leather, otherthan sports footwear incorporating aprotective metal toe-cap andmiscellaneous special footwear
Wood, sawn or chipped lengthwise,sliced or peeled, of a thickness
exceeding 6mm; railway or tramway
sleepers (cross-ties) of wood, notimprenatedPlywood consisting solely of sheets of
wood

250

197

78.76

551.35219,276

105,12347.94

335.58

95

Sq
Meter
Sq
Meter
Pieces554,139

267,38948.25

4,584.05

14

M/Tons204,284

20,95410.26

143.6027

Pairs

2,308,770

1,088,685

47.15

1,273.17

7

Pairs

3,667

2,306

62.88

440.16

54

Cubic
Meter

264,131

36,22313.71

740.56

14

Cubic
Meter

1,426

926

64.93

909.08

Packing cases, boxes, crates, drums andsimilar packings, of wood; cable-drumsof wood; pa;;ets, box pallets and otherload boards, of wood; casks, barrels,vat, tubs and othe rcoopers' products
and parts thereof, of wood
Other products of wood

7

M/Tons1,425,900

1,037,000

72.73

509.08

7

M/Tons

3,056

1,630

53.33

373.33

Articles of cork and straw or otherplaiting materials; baskware andwickerwork
Printed books, brochures, leaflets andsimilar printed matter, in single sheets,
other than advertising material
Newspapers, journals and periodicals,
appearing at least four times a week7

M/Tons263,452,000

100,556,780

38.17

267.1820

M/Tons2,223,725

1,037,006

46.63

932.67

14

M/Tons500,000

357,06971.41

999.79Other printed matter

14

M/Tons341,537

125,74736.82

515.45

Gas oils

7

Kg

1,000

679

67.90

475.30Ethylene, propylene, butylene, butadieneand other petroleum gasses or gaseoushydrocarbons, except natural gas
Chemical elements n.e.c inorganic acids
axcept nitiric and sulphonitric; inorganic
oxygen compounds of boron, silicon andsulphur halogen or sulphur compounds
of non-metals; sodium hydroxide;hydroxide andperoxide of magnesium;
ocides, hydroxides
Synthetic organic colouring matter andpreparations based thereon; systheticorganic products of akind used as
fluoescent brightening agents or as
juminophore; colour lakes andpreparations based thereon
Nitric acid; sulphonitric acids; ammonia;
ammonium chloride; nitrietes; nitrates ofpatassium; ammonium carbonates;
mineral or chemical fertilzers

7

Kg

64,18048,71875.91

531.3620

M/Tons

204,719

98,71948.22

964.43

7

M/Tons

1,000

640

63.95

447.6514

Kg

75,00048,24064.32

900.47

7

May 2012139

Synthetic rubber and factice derived
from oils, and mixtures thereof withnatural rubber and similar natural gums,
in primary forms or in plates, sheets or
strip
Paints and varnished (including enamels
and lacquers) prepared pigments,
prepared opacifiers and preparedcolours, vitrifiable enamels and glazes,
engobes, liquid lustres and similar
preparations, of a kind used in theceramic, enamelling or glass industry
Provitains, vitamins and hormones;
glycosides and vegetable alkaloids andtheir salts, ethers, esters and otherderivatives, antibiotics
Medicaments, for therapeutic orprophylactic uses
Other pharmaceutical products orarticles or articles for medical or surgical
purposes
Soap and detergents, perfume and toilet
preparations
Sacks and bags, of plastics

7

Sq
Meter

5,000

3,019

60.37

422.5920

Liters167,007

93,36355.90

1,118.07

41

Dozen

25,814,223

20,428,919

79.14

3,244.67

7

Kg

250

136

54.32

380.247

Kg

27,16010,16037.41

261.86

61

M/Tons631,300

412,23265.30

3,983.23

14

Kg

210,490

102,700

48.79

683.07

Articles of plastics n.e.c

81

Pieces3,888,341

2,356,298

60.60

4,908.52

Bricks, blocks, tiles and other ceramic
goods of siliceous earths
Ceramic flags and paving, hearth or walltiles; ceramic mosaic cubes and the like
Portland cement, aluminous cement,slag cement and similar hydrauliccements, except in the form of clinkers
Non-refractory mortars and concretes

693

Pieces284,930,481

148,693,684

52.19

36,164.86

7

Pieces47,53026,79056.36

394.55

7

Tons

4,753

2,753

57.92

405.457

Kg543,200

350,87064.59

452.15

Other articles of cement, concrete or
artificial stone
Articles of asbestos-cement, cellulose
fivre-cement or the like
Other furniture, of a kind used in offices

7

Kg

2,037

815

40.00

280.0014

M/Tons

815

547

67.12

939.6920

Pieces142,726

17,111

11.99

239.77

Other wooden furniture, of a kind used in
the kitchen
Other furniture n.e.c7

Pieces

170

102

60.00

420.00122

Pieces

20,220,892

12,649,159

62.55

7,631.70

Mattress supports; mattresses, fittedwith springs or stuffed or internally fittedwith material or of cellular rubber orplastics, whether or not covered
Other articles

258

Pieces

10,196,923

7,122,527

69.85

18,021.24

7Kg

1,000,000

679,000

67.90

475.30

Other flat-rolled products of iron or steel

7

M/Tons

6,790

4,790

70.54

493.81Semi-finished products of lead, zinc andtin or their alloys
Door, windows and their frames andthresholds for doors, of iron, steel oraluminium
Other structures (except prefabricatedbuildings) and parts of structures, ofiron, steel or aluminium; of a capacity
exceeding 300 litres, not fitted withmechanical or themal equipment
Domestic metal products

68

M/Tons1,805,033

813,96245.09

3,066.39

217

Pieces

1,761,407

767,804

43.59

9,459.11

20

M/Tons

208,331106,29451.02

1,020.43

20

M/Tons845,518

543,75364.31

1,286.20

Hand tools (including hand tools of akind used in agriculture, horticulture orforestry, hand saws, files pillers andmetal cutting shears, hand-operated
spanners blow-lamps and clamps)
interchangeable tools for hand tools or

14

Pieces67,15350,06174.55

1,043.66

May 2012

for mecahine-tools

Tanks, casks, drums, cans, boxes andsimilar containers of iron, steel oraluminium, of a capacity not exceeding
300 litres, not fitted with mechanical orthermal equipment; stoppers,caps andlids
wire, rods, tubes, plates, electrodes andsimilar products, of base metal or of
metal carbides, coated or cored with flux
material, of a kind used for solderingbrazing, welding or deposition of metalor of metal carbides; wire and rods, of
agglomerated
Parts n.e.c for special purpose machines

34

Tons

54,32020,57337.87

1,287.73

27

M/Tons

10,389

5,426

52.23

1,410.08

14

M/Tons

2,451

1,664

67.87

950.14

Electricity distribution or control
apparatus
Co-axial cable and other co-axial electric
conductors
Parts and accessories n.e.c of motor
vehicles7

M/Tons40,74025,67263.01

441.1041

M/Tons

41,88132,18276.84

3,150.57

14

M/Tons3,395,000

1,844,32054.32

760.54

3,381

190,691.83

Overall Capacity

56.40

Product Code

Product Label

Number of
Establishments

Unit ofMeasurement

Installed Capacity

Quantity Produced

Capacity Utilized

Weighted Capacity

Table 43 Capacity Utilization: Mining & Quarrying

1101

Coal

2

Tons

4,525

3,620

80.00

160.001512

Marble18

M/Tons57,03525,55444.80

806.46

1513

25

Tons

1,059,607

594,66556.12

1,403.03

1520

Stone, Sand, Clayand Granite
Limestone

45

Tons

547,554226,97441.45

1,865.36

1532

Chipping

11

Tons

5,937

3,548

59.76

657.321620

Processing ofSalt
Borehole/Natural
Water

4

Kg

16,381

14,11886.19

344.75

5

Sq
Meter

471

206

43.85

219.23

1800
TOTAL

110

5,456.15

49.60

140

May 2012

Table 44 Awareness of SMEDAN
ITEM

Number

Percentage

Yes

10,43645.5

No12,482

54.5

Total

22,918100.0

Table 45 Awareness of SMEDAN by State
State

141

Yes

No

Total

Number

Percentage

Number

Percentage

Abia

203

36.70

350

63.30

553

Adamawa

113

46.15

132

53.85

245

Akwa Ibom

153

48.66

162

51.34

315

Anambra

282

35.68

509

64.32

791

Bauchi

308

50.09

307

49.91

615

Bayelsa

63

47.05

71

52.95

134

Benue

192

49.15

199

50.85

390

Borno

49

29.32

119

70.68

168

Cross River

172

43.59

223

56.41

395

Delta

451

69.65

196

30.35

647

Ebonyi

97

33.91

190

66.09

287

Edo

544

55.90

429

44.10

973

Ekiti

107

37.70

178

62.30

285

Enugu

231

51.52

217

48.48

448

Gombe

143

55.85

113

44.15

255

Imo

212

35.92

379

64.08

591

Jigawa

61

26.31

170

73.69

231

Kaduna

681

52.59

614

47.41

1,295

Kano

656

35.88

1,173

64.12

1,829

Katsina

287

52.61

259

47.39

546

Kebbi

95

38.57

152

61.43

247

Kogi

180

51.46

170

48.54

350

Kwara

224

50.29

222

49.71

446

Lagos

1,864

48.26

1,998

51.74

3,862

Nassarawa

217

50.19

215

49.81

432

Niger

246

49.99

246

50.01

492

Ogun

127

21.44

466

78.56

593

May 2012

Ondo

268

41.47

378

58.53

646

Osun

39

38.41

62

61.59

100

Oyo

476

32.48

990

67.52

1,467

Plateau

354

53.48

308

46.52

663

Rivers

435

59.01

302

40.99

738

Sokoto

202

33.73

398

66.27

600

Taraba

106

42.72

142

57.28

247

Yobe

85

52.88

75

47.12

160

Zamfara

117

31.87

251

68.13

368

FCT

394

76.88

118

23.12

512

TOTAL

10,43645.54

12,482

54.46

22,918

Table 46 Awareness of SMEDAN by Sector
Sector

Yes

No

Total

Number

Percentage

Number

Percentage

384

50.00

384

50.00

768

Mining and Quarrying

80

47.31

89

52.69

168

Manufacturing

2,431

40.45

3,578

59.55

6,009

Building and Construction

83

34.91

155

65.09

239

Wholesale and Retail Trade; Repair

1,649

39.16

2,561

60.84

4,210

Hotels and Restaurants

1,005

44.21

1,268

55.79

2,272

Transport, Storage and

332

39.61

506

60.39

838

Financial Intermediation

1,615

69.49

709

30.51

2,323

Real Estate, Renting and Business

519

52.61

468

47.39

987

Education

771

45.10

938

54.90

1,709

Health and Social Work

1,365

49.32

1,402

50.68

2,767

Other Community, Social and

204

32.52

423

67.48

627

10,43645.54

12,482

54.46

22,918Agricultre, Hunting, Forestry and
Fishingof Motor Vehicles and Household
goodsCommunication

Activities

Personal Service Activities
TOTAL

142

May 2012

Table 47 Benefit from SMEDAN Service
ITEM

Number

Percentage

Yes

996

9.5

No

9,440

90.5

Total

10,436

100.0

Table 48 Benefit from SMEDAN Service by States
State

Yes

No

Number143

Percentage

Total

Number

Percentage

Abia

42

18.54

183

81.46

224

Adamawa

27

21.16

99

78.84

126

Akwa Ibom

15

7.12

192

92.88

207

Anambra

27

8.46

294

91.54

321

Bauchi

55

16.95

268

83.05

323

Bayelsa

0

0.00

63

100.00

63

Benue

24

11.17

193

88.83

217

Borno

12

24.09

37

75.91

49

Cross River

14

7.56

166

92.44

180

Delta

14

3.09

444

96.91

458

Ebonyi

0

0.00

97

100.00

97

Edo

39

6.87

530

93.13

569

Ekiti

5

4.58

110

95.42

115

Enugu

14

5.49

234

94.51

248

Gombe

7

4.09

159

95.91

166

Imo

45

16.84

220

83.16

265

Jigawa

0

0.00

127

100.00127

Kaduna

120

15.45

654

84.55

773

Kano

26

3.58

701

96.42

727

Katsina

68

22.31

238

77.69

306

Kebbi

24

23.78

78

76.22

103

Kogi

16

8.50

175

91.50

191

Kwara

0

0.00

224

100.00

224

Lagos

139

14.58

813

85.42

952

Nassarawa

41

18.44

181

81.56

222

Niger

7

2.79

256

97.21

264

Ogun

3

2.60

129

97.40

132

Ondo

5

1.92

269

98.08

275

Osun

28

62.44

17

37.56

45

Oyo

71

9.58

667

90.42

738

Plateau

16

4.50

338

95.50

354

Rivers

34

7.78

401

92.22

435

May 2012

Sokoto

14

6.99

188

93.01

202

Taraba

0

0.00

106

100.00

106

Yobe

0

0.00

111

100.00111

Zamfara

25

19.26

103

80.74

128

FCT

20

5.12

374

94.88

394

TOTAL

996

9.54

9,440

90.46

10,436

Table 49 Ranking of SMEDAN Service
Rank
Services

1

2

3

4

5

6

7

8

Entrepreneurship Training

759

5218

71

35

50

22

18

Vocational skill upgrading

367

3809

69

67

26

30

23

Facilitation of access to market

258

3730

137

47

88

33

5

Facilitation of access to

387

3720

84

66

20

68

5

247

3705

57

61

96

29

63

185

3764

63

62

59

77

54

245

3658

77

62

49

55

89

7

338

3608

11

12

36

14

15

91

5

FinanceBusinesscounseling/Monitoring
Facilitation of product quality
control & Certification
Facilitation of access to
information
OthersTable 50 Rank of Problems Militate Against Enterprises Development in
Nigeria
Services

Rank
1

Lack of access to finance

13,273

2,200

1,168

607

406

228

268

19

Lack of work space

1,212

4,312

2,116

1,664

1,553

1,733

2,512

132

Weak infrastructure

2,619

5,435

4,493

1,851

1,487

830

586

66

Lack of entrepreneurship/vocational
training

1,178

2,801

2,832

3,908

2,163

2,245

909

46

Obsolete equipment

884

1,526

2,005

2,403

4,061

2,597

1,640

54

Lack of access to research &development
Inconsistent policies

875

1,392

2,329

2,892

2,646

3,302

1,903

113

1,903

1,975

2,710

2,092

1,690

1,722

3,606

222

Transportation

501

619

357

222

Lack of gov't support

237

363

193

149

230
151

166
186

392
104

1,270
142

144

2

3

4

5

6

7

8

May 2012

Inadequate power supply
Excess Tax
High interest rates
Subsidies
Illiteracy
None

291
230
282

327
376
333

129
102
151

188
153
313

186

334

130

282

171
300

413
334

153
184

148
173

235
324
245
248
223
253

244
223
76
158
163
72

38
35
43
48
76
46

47
59
40
42
33
35

Table 51 Measures by SMEDAN to Alleviate Problems
Services

Rank
1

2

3

Entrepreneurship Training

4,811

3,448

2,642

4
2,344

5
1,199

Vocational skill upgrading

1,674

3,818

3,227

2,686

Facilitation of access to market

1,831

3,888

3,498

2,516

Facilitation of access to Finance

8,663

2,692

2,046

Business counseling/Monitoring

1,306

2,114

Facilitation of product quality
control & Certification

851

Facilitation of access to
information
Transportation

6

7

8

1,021

663

29

1,879

1,322

1,115

100

2,587

1,911
1,014

1,317
588

924
309

100
67

2,198

2,151

4,074

2,191

1,320

77

1,304

1,996

1,960

2,184

4,257

2,149

108

1,539

1,690

1,678

1,621

1,658

1,720

4,615

182

464

540

221

482

Reduction of Tax

440

263

176

229

343
243

167
150

278
131

861
39

Inadequate power supply

372

341

75

291

152

115

47

62

Provision of fertilizer

337

295

139

182

148

90

48

44

Periodic visitation to all Nigerianindustrial estate

311

261

99

218

228

75

27

34

None

484

286

69

178

213

96

26

71

Table 52 Export of Product/Services

145

Item

Number

Percentage

Yes

603

2.63

No

22,315

97.37

Total

22,918100.00

May 2012

Table 53 Value of Export by Sector (Naira)
AMOUNT (N'Million)

Below 1020 – 30

21 - 30

31 - 40

41 - 50TOTAL

SECTOR

Num
ber

Percent
age

Numb
er

Percen
tage

Num
ber

Percen
tage

Num
ber

Percentage

Number

Percentage

Above 50
Num
Percenber
tage

Agriculture, Hunting,Forestry and Fishing14

100.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

14

Mining and Quarrying

7

44.44

4

22.22

4

22.22

0

0.00

2

11.11

0

0.00

16

Manufacturing

143

44.68

34

10.64

48

14.89

0

0.00

34

10.64

61

19.15

319

Building andConstruction

2

25.00

5

50.00

0

0.00

0

0.00

0

0.00

2

25.00

9

Wholesale and Retail
Trade; Repair ofMotor Vehicles and
HH
Transport, Storage
and Communication

81

78.57

7

7.14

0

0.00

0

0.00

7

7.14

7

7.14

103

38

87.50

0

0.00

0

0.00

0

0.00

5

12.50

0

0.00

44

Financial
Intermediation

20

50.00

0

0.00

0

0.00

20

50.00

0

0.00

0

0.00

39

Real Estate, Renting
and Business
Activities

17

83.33

0

0.00

0

0.00

0

0.00

0

0.00

3

16.67

21

Education34

100.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

34

Other Community,
Social and Personal
Service Activities

5100.00

0

0.00

0

0.00

0

0.00

0

0.00

0

0.00

5

TOTAL

360

59.71

49

8.20

51

8.48

20

3.26

49

8.05

74

12.30

603

Table 54 Banking Relationship

146

Item

Number

Percentage

Yes

18,179

79.3

No

4,739

20.7

Total

22,918100.0

May 2012

Table 55 Business Registration
Item

No.

Percent

Yes

18,513

80.78

No

4,405

19.22

Total

22,918100.00

Table 56 Business Plan
Item

No.

Percent

Yes

17,930

78.24

N0

4,988

21.76

Total

22,918100.00

Table 57 Number of Micro Enterprises by State

STATE

NumberPERCENT

Abia

407,428

2.36

Adamawa

405,261

2.35

Akwa Ibom

447,589

2.59

Anambra499,070

2.89

Bauchi

460,186

2.67

Bayelsa

420,233

2.43

Benue

436,391

2.53

Borno

463,009

2.68

Cross River

472,291

2.74

Delta

486,023

Ebonyi

416,508

2.41

Edo491,220

2.85

Ekiti

421,770

2.44

Enugu

423,006

2.45

Gombe

416,183

2.41

Imo408,761

2.37

Jigawa438,502

2.54

Kaduna548,467

3.18

2.82

147

May 2012

Kano

872,552

5.05

Katsina

525,742

3.05

Kebbi

386,714

2.24

Kogi
Kwara
Lagos
Nassarawa
Niger

473,882
427,668
880,805
468,985
423,866

2.75
2.48
5.10
2.72
2.46

Ogun
Ondo
Osun
Oyo
Plateau
RiversSokoto471,772
490,761
481,351
523,209424,079585,241
379,507

2.73
2.84
2.79
3.03
2.46
3.39
2.20

TarabaYobe
Zamfara360,682
364,806
385,654

2.09
2.11
2.23

FCT

272,579

1.58

Total

17,261,753

100

Table 58 Number of Micro Enterprises by Sector
Table 4.2.2: NUMBER OF ENTERPRISE BY SECTOR
SECTOR
Agriculture

Percent

2,633,041

16.27

27,365

0.16

Manufacturing

2,831,642

16.79

Construction

556,133

3.12

8,884,265

53.24

Hotels and Restaurants

300,324

1.81

Transport, Storage and Communications

635,203

3.74

Real Estate, Renting and Business Activities

210,115

1.24

Education

33,2590.28

Health and Social Work12,7120.08

Other Community, Social and Personal Service
Activities

1,137,694

7.0

Total

17,261,753

100

Mining and Quarrying

Wholesale and Retail Trade; Repair of Motor Vehicles
and Household Goods

148

Number

May 2012

Table 59 Initial Start-Up Capital at Inception (N’000)
AMOUNT(N‟000)
Below 50
50-100101-200
201-300
301-400
401-500
501-600
601-700
701-800
801-900
901-1000
Above 1000
Total

149

TOTAL NUMBER
13,781,578
2,231,550
541,515
189,201
85,888111,522
20,016
15,884
14,8308,397
38,08853,671
17,092,140

PERCENTAGE
80.63
13.06
3.17
1.11
0.5
0.65
0.12
0.09
0.09
0.05
0.22
0.31
100

May 2012

Table 60 Initial Start-Up Capital by Sector (000)

SECTOR

Below 50

50-1001012002013003014004015005016006017007018008019009011000

Above
1000

Total

2,187,703

296,60271,93912,33220,66
915,980

1,728

-

1,930

717

666

16,55
0

2,626,816

15,620

4,577

1,936

-

-

3,436

-

-

-

-

1,796

-

2,459,001

232,574

80,965

14,612

4,189

13,184

1,733

1,673

6,025

2,911

1,631

11,58
1

2,830,077

413,687

72,924

19,87913,087

18,70
8

3,661

1,649

651

-

-

1,861

6,655

552,763

7,216,934

1,178,81
2

263,081

68,07533,30
953,506

8,085

10,75
2

1,620

2,565

17,67613,77
38,868,186

235,367

33,783

14,574

8,827

777

4,892

-

-

2,104

-

-

-

300,324

351,407

177,588

39,70423,725

1,980

10,407

6,822

2,808

3,151

2,204

8,123

3,544

631,463

137,690

37,71910,503

16,558

2,217

1,367

-

-

-

-

-

1,568

207,623

23,412

1,052

2,153

2,356

946

785

-

-

-

-

-

-

30,705

9,458

2,256

-

998

-

-

-

-

-

-

-

-

12,712

457,117106,874

17,90325,257

991

1,745

-

-

-

-

-

-

609,887

13,507,39
72,144,762

522,63
7

185,82
583,78
7108,96
5

20,01
6

15,88
4

14,83
0

Agriculture
Mining and
Quarrying

27,365

Manufacturing
Construction
Wholesale andRetail Trade;
Repair ofMotor Vehicles
and Household
Goods
Hotels andRestaurants
Transport,
Storage andCommunicationsReal Estate,
Renting andBusiness
Activities
Education
Health andSocial Work
Other
Community,
Social andPersonal
Service
Activities
Total

150

8,397
31,75353,67
116,697,92
3

May 2012

Table 61 Total Capital as at December 2010
AMOUNT(N‟000)
Below 50
50-100101-200
201-300
301-400
401-500
501-600
601-700
701-800
801-900
901-1000
Above 1000
Total

TOTAL NUMBER
9,077,259
4,333,033
1,661,813
589,207308,658
272,358
132,406
96,456
84,37751,52893,180217,047
16,917,323

PERCENTAGE
53.66
25.61
9.82
3.48
1.82
1.61
0.78
0.57
0.50
0.30
0.55
1.28
100

Table 62 Ownership Status
OWNERSHIP STATUS
Form of Ownership
Sole Proprietorship

151

Number16,699,803

Percent
97.36

Partnership

414,369

2.42

Cooperative

18,435

0.11

Faith Based Organization

19,762

0.12

Total

17,152,368

100

May 2012

Table 63 Ownership Status by Sector
SECTOR

Agriculture
Mining and
Quarrying
Manufacturing
Construction
Wholesale andRetail Trade;
Repair ofMotor Vehicles
andHousehold
Goods
Hotels andRestaurants
Transport,
Storage andCommunicationsReal Estate,
Renting andBusiness
Activities
Education
Health andSocial Work
Other
Community,
Social andPersonal
Service
Activities
Total

OWNERSHIP STATUS BY SECTOR
Sole Proprietorship
Partnership
Private Limited
Liability

Cooperative

NumberNumber

Percent

NumberReligious
Organization

Percent

Number

Percent

2,545,781
27,36596.95
100

78,012
-

2.97
0

1,506
-

0.05
0

1,359
-

Percent

0.05

Number736-

2,772,225
509,259
8,727,053

97.95
91.57
98.51

56,692
46,874
118,323

2.00
8.43
1.34

422
1,346
2,062

0
0.25
0

1,459
8,458

0.05
0.10

4,784

300,324

100

-

-

-

0

-

0

-

594,454

93.58

27,043

4.26

3,770

0.58

-

0

13,706

205,008

97.57

5,107

2.43

6,677

3.13

-

0

-

30,911
9,328

98.30
73.37

3,385

26.63

-

0
0

-

0
0

535
-

596,92397.87

12,965

2.13

-

0

-

0

-

16,318,63
0

97.73

348,401

2.09

15,7830.09

11,2770.07

19,762

Table 64 Sex of Owners by Economic Sector
SEX OF OWNERS BY ECONOMIC SECTOR
SECTOR

Male
NumberAgriculture

Percent

Number

Total

Percent

2,269,705

86.20

363,33613.80

2,633,041

19,671

71.88

7,694

28.12

27,365

Manufacturing

1,409,325

49.77

1,422,316

50.23

2,831,642

Construction

461,134

82.92

94,99917.08

556,133

Wholesale and Retail
Trade; Repair of Motor
Vehicles and Household
Goods

4,525,266

50.94

4,358,999

49.06

8,884,265

Hotels and Restaurants

78,163

26.03

222,16173.97

300,324

Mining and Quarrying

152

FemaleMay 2012

Transport, Storage andCommunications

511,253

80.49

123,950

19.51

635,203

Real Estate, Renting andBusiness Activities

148,556

70.70

61,55929.30

210,115

Education

25,210

75.80

8,049

24.20

33,259Health and Social Work

6,682

52.57

6,030

47.43

12,712Other Community, Socialand Personal Service
Activities

230,750

37.83

379,13862.17

609,887

9,685,715

57.88

7,048,231

42.12

16,733,946

Total

Table 65 Age of Owner (sole Proprietorship)
Age of owner

NumberBelow 20

Percent

97,074

0.54

20-25

1,038,555

6.04

26-35

4,728,878

27.86

36-50

6,789,574

41.60

51-60

2,368,717

14.09

Above 60

1,696,030

9.87

16718827.41

100

Total

Table 66 Highest Qualification Attained by Owners
Highest Qualification Attained

Number

No Education
Non Formal Education

5,262,877
1,899,249

30.63
11.05

Primary School

4,226,234

24.59

Secondary

4,458,593

25.94

Technical

219,840

1.28

NCE/ND

153

Percent

634,109

3.69

B.Sc/HND

385,817

2.25

Post-Graduate

98,098

0.57

Total

17184817.16

100

May 2012

Table 67 Initial Total Assets at Inception
AMOUNT N : K (000)NumberBelow 50

12,319,311

72.66

50-1002,681,832

15.82

101-200

940,3315.55

201-300

286,473

1.69

301-400

191,5471.13

401-500

151,3190.89

501-600

35,9910.21

601-700

54,4870.32

701-800

56,5790.33

801-900

21,0970.12

901-1000

80,0590.47

Above 1000

135,1070.80

16740121.9

100

Total

Table 68 Source of Capital

154

SourceNumber

Percent

Personal savings

13,661,185

84.56

Loan

1,068,228

9.17

Family Source

3,708,361

29.83

Cooperative/Esusu

923,047

7.98

Husband187,509

1.69

Partnership

13,201

0.18

Parents

17,612

0.24

Friends

18,2850.25

Children

6,423

0.09

Percent

May 2012

Table 69 Business Capacity Turnover 2009
AMOUNT N(000)NumberBelow 50

13,816,670

82.54

50-1001,936,647

11.57

101-200

561,732

3.36

201-300

149,9210.90

301-400

61,8690.37

401-500

43,3080.26

501-600

22,0790.13

601-700

27,4140.16

701-800

10,6120.06

801-900

16,2970.10

901-1000

24,0390.14

Above 1000

69,5320.42

16,740,121

100

Total

Percent

Table 70 Business Capacity Monthly Average 2010
AMOUNT N(000)Below 50

Number

Percent

13,028,628

76.91

50-1002,356,755

13.91

101-200

766,1174.52

201-300

271,880

1.60

301-400

96,5430.57

401-500

76,9960.45

501-600

50,4550.30

601-700

39,6050.23

701-800

26,5510.16

801-900

20,5990.12

901-1000

22,5290.13

Above 1000

183,861

1.09

Total

16,940,519

100

Table 71 Business Monthly Cost of Operation
AMOUNT N(000)Below 50

155

Number

Percent

15,736,515

92.71

50-100892,528

5.26

101-200

188,679

1.11

201-300

52,8640.31

301-400

18,6220.11

401-500

29,5390.17

501-600

10,2070.06

May 2012

601-700

5,688

0.03

701-800

10,9350.06

801-900--

901-1000

3,390

0.02

Above 1000

24,9880.15

16,973,955

100

Total

Table 72 Promotional MediaPROMOTIONAL MEDIA

Number

Percent

Television

46,0392.08

Newspaper advertisement

13,0040.59

Handbill distribution

82,317

3.71

3,557,058

97.40

Radio advertisement

141,295

6.33

Billboard

127,496

5.75

Business Card

36,323

1.65

Person-to-Person

Table 73 Business Insurance
SECTOR

InsuredNot Insured

Number
29,911

Percent
1.14

Number
2,603,130

Percent
98.86

Mining and Quarrying
Manufacturing
Construction

1,237
35,72535,986

4.52
1.26
6.47

26,1292,795,916
520,147

95.48
98.74
93.53

27,365
2,831,642
556,133

Wholesale and Retail Trade; Repair of Motor Vehicles andHousehold Goods
Hotels and Restaurants
Transport, Storage and Communications

114,1031.28

8,770,162

98.72

8,884,265

10,412
26,496

3.47
4.17

289,912608,707

96.53
95.83

300,324
635,203

3,359
-

1.60
0.00

206,756
33,25998.40
100

210,115
33,259Agriculture

Real Estate, Renting and Business Activities
Education
Health and Social Work
Other Community, Social and Personal Service Activities
Total

156

Total
2,633,041-

0.00

12,712100

12,712

2,001

0.33

607,887

99.67

609,887

259,229

1.55

16,474,717

98.45

16,733,946

May 2012

Table 74 Daily Useage of Alternative Source of Power by Sector
SECTOR

1 - 5 Hours
Number

Percent

6 - 10 Hours
Number11 - 15 Hours

16 - 20 Hours

Percent

Number

Percent

Number

Percent

Total

Agriculture

1,506,604

75.62

238,535

11.97

111,818

5.61

135,509

6.80

1,992,465

Mining and
Quarrying

14,089

51.03

1,956

7.08

7,697

27.87

3,870

14.02

27,613

Manufacturing

1,865,80278.30

321,442

13.49

123,290

5.17

72,232

3.03

2,382,765

Construction

325,68173.17

82,39918.51

30,968

6.96

6,029

1.35

445,078

5,617,042

74.12

1,255,228

16.56

430,0645.68

275,540

3.64

7,577,874

Hotels andRestaurants

182,980

66.05

62,847

22.69

9,845

3.55

21,352

7.71

277,025

Transport, StorageandCommunications

338,766

72.59

87,50818.75

16,206

3.47

24,201

5.19

466,681

Real Estate,
Renting andBusiness Activities

130,950

66.68

39,04419.88

17,627

8.98

8,778

4.47

196,399

Education

31,484

89.48

3,166

9.00

-

0.00

535

1.52

35,184

Health and Social
Work

3,287

37.00

1,743

19.62

-

0.00

3,853

43.38

8,884

Other Community,
Social andPersonal Service
Activities

339,768

69.86

88,047

18.10

22,126

4.55

36,393

7.48

486,334

10,356,453

74.53

2,181,914

15.70

769,6425.54

588,294

4.23

13,896,302

Wholesale andRetail Trade;
Repair of Motor
Vehicles andHousehold Goods

Total

157

May 2012

Table 75 Employment by Sector at Commencement
SECTORMALE
NUMBER

Agriculture
Mining and Quarrying
Manufacturing
Construction
Whole & Retail, Trade;
Repair of Motor vehicles
and Household Goods
Hotel & Restaurant
Transport, Storage ofCommunications
Real Estate, Renting andBusiness Activities
Education
Health & Social Work
Other community, socialand personal service
activities
Total

FEMALEPERCENTAGE

NUMBERPERCENTAGE

2,228,761
16,9451,232,618
376,803

24.6
0.2
13.6
4.2

1,105,969
9,462
1,304,744
60,933

17
0.1
20.1
0.9

4,335,612

47.9

3,295,406

50.6

76,375404,395

0.8
4.6

187,449
196,170

2.9
3.0

11,924

1.2

75,844

1.2

33,6887,287
219,379

0.4
0.1
2.4

11,533
258,1700.2
4.0

9,043,788
58.2%

100

6,505,679
41.8%

100

Table 76 Employment by Sector as at December 2010
SECTOR
Agriculture
Mining & Quarrying
Manufacturing
Construction
Wholesale & Retail Trade,
Repair of Motor Vehicles
and household goods
Hotels and Restaurants
Transport, Storage andCommunications
Real estate, Renting andbusiness activities
Education
Health and social work
Other community, social &personal service activities
Total

158

MALE
TOTAL NOPERCENTAGE
2,087,779
23.3
16,3020.2
1,271,654
14.2
378,795
4.2
4,413,204
49.2

FEMALETOTAL NOPERCENTAGE
1,168,380
17.5
14,2460.2
1,357,976
20.4
70,9901.1
3,335,11250

93,844
348,008

1.0
3.8

205,855
172,972

3.1
2.6

108,700

1.2

77,961

1.2

30,743
5,672
222,528

0.3
0.1
2.5

6,581
667
253,492

0.1
3.8

8,977,228
57.4

100

6,664,232
42.6

100

May 2012

Table 77 Market Channel of ProductMarket Channel

Number

Percent

Same locality

13,301,856

89.84

Same town

10,076,220

73.97

Same State

4,480,336

43.08

Nigeria only

1,445,342

16.58

ECOWAS

26,1980.34

Africa only

6,110

0.08

Worldwide

1,130

0.01

Table 78 Business Registration by Sector
SECTOR

Registered
NumberAgriculture

Percent

Number

Total

Percent

86,0673.31

2,642,699

96.69

2,603,907

515

1.88

27,09798.12

27,365

Manufacturing

110,001

3.90

2,776,081

96.10

2,821,443

Construction

55,65810.09

488,140

89.91

551,640Wholesale and Retail Trade;
Repair of Motor Vehicles andHousehold Goods

330,078

3.74

8,809,550

96.26

8,828,579

Hotels and Restaurants

26,295

8.88

281,755

91.12

296,260

Transport, Storage andCommunications

95,235

15.01

539,195

84.99

634,430

Real Estate, Renting andBusiness Activities

28,53813.73

179,31886.27

207,855

Education

5,719

18.18

25,72881.82

31,446998

7.85

11,71592.15

12,712

48575

7.96

561,312

92.04

609,887787,679

4.74

15,837,846

95.26

16,625,525

Mining and Quarrying

Health and Social Work
Other Community, Social andPersonal Service Activities
Total

159

Not RegisteredMay 2012

Table 79 Support Received from Association
Support

Number

Percent

Loan

752,303

4.36

Training

347,110

2.01

Joint Permit from government

73,021

0.42

Facilitation of access to quality product17,536

0.10

Moral

56,0580.32

Police protection

51,8020.30

Bulk purchases

4,926

0.03

Motivation

27,016

0.16

Dissemination of information on govt policies

36,4790.21

Education

2,270

0.01

Advise69,2900.40

Monitoring and Regulation

8,611

0.05

Support member against gov‟t harassment

13,4140.08

Awareness for best practices

14,0060.08

Not Stated

15,789,250

91.46

Total

17263091.32

100

Table 80 Own Patent Right by Sector
SECTORPATENT RIGHT
NumberAgriculture

Percent

NO PATENT RIGHT
Number

Total

Percent

241,098

9.16

2,391,943

90.84

2,633,041

781

2.86

26,58497.14

27,365

Manufacturing
Construction
Wholesale and Retail Trade; Repair of Motor
Vehicles and Household Goods
Hotels and Restaurants

89,95750,090337,811

3.18
9.01
3.80

2,741,685
506,0438,543,219

96.82
90.99
96.20

2,831,642
556,133
8,881,029

6,815

2.27

293,50997.73

300,324

Transport, Storage and Communications
Real Estate, Renting and Business Activities
Education
Health and Social Work
Other Community, Social and Personal Service
Activities
Total

71,9493,176
2,833
47,588

11.33
1.51
8.52
0.00
7.80

563,254
206,938
30,426
12,712562,300

88.67
98.49
91.48
100.0092.20

635,203
210,115
33,25912,712609,887

852,097

5.09

15,878,613

94.91

16,730,710

Mining and Quarrying

160

May 2012

Table 81 Own Patent Right by Form of Ownership
Form of Ownership

Have Patent Right
Number

No Patent Right

Percent

Sole Proprietorship

Number

Percent

5.10
834,185

Total

94.90
15,513,188

Partnership

15.34
58,751

16,347,373
84.66

324,295

Private Limited Liability

-

0.00

Cooperative

-

0.00

Faith Based
Organisation
Total

-

0.00

383,047100

15,783

15,783100

22,55822,558100

16,727

16,727

5.32
892,936

Number

94.68
15,892,551

16,785,487

Table 82 Patent Right Registered by Sector
SECTOR

Patent Right
Registered
NumberAgriculture

Number

Total

Percent

24,523

11.52

188,34688.48

212,868

-

0.00

489

100.00489

Manufacturing

9,338

11.17

74,27088.83

83,607

Construction

22,75954.35

19,11345.65

41,872Wholesale and Retail Trade; Repair of Motor
Vehicles and Household Goods

48,171

12.59

334,47187.41

382,643

Hotels and Restaurants

2,066

32.86

4,221

67.14

6,287

Transport, Storage and Communications

22,35831.93

47,65668.07

70,014

Real Estate, Renting and Business Activities

1,230

46.92

1,391

53.08

2,621

946

28.36

2,389

71.64

3,335

4,461

9.78

41,13790.22

45,598135,851

15.99

713,48484.01

849,335

Mining and Quarrying

Education
Other Community, Social and Personal
Service Activities
Total

161

Percent

Patent Right Not
RegisteredMay 2012

Table 83 Skills Gap by Sector
SECTOR

Qualified Artisans
Readily Available

Qualified Artisans Not
Readily Available

Total

Number

Percent

Number

Percent

1,252,744

47.58

1,380,297

52.42

2,633,041

12,75246.60

14,61453.40

27,365

Manufacturing

1,506,077

53.19

1,325,564

46.81

2,831,642

Construction

313,85456.44

242,279

43.56

556,133

4,932,692

55.52

8,884,265

Agriculture
Mining and Quarrying

Wholesale and Retail Trade; Repair of Motor
Vehicles and Household Goods
Hotels and Restaurants

3,951,572
115,839

38.57

184,48661.43

300,324

Transport, Storage and Communications

361,09956.85

274,104

43.15

635,203

Real Estate, Renting and Business Activities
Education
Health and Social Work102,670
22,257
8,370

48.86
66.92
65.85

107,445
11,002
4,342

51.14
33.08
34.15

210,115
33,25912,712

330,255

54.15

279,633

45.85

609,887

7,977,488

47.67

8,756,457

52.33

16,733,946

Other Community, Social and Personal
Service Activities
Total

44.48

Table 84 Skills Gap by Form of Ownership
Form of Ownership

Qualified Artisans
Readily Available

Qualified Artisans Not
Readily Available

Total

Number

Percent

Number

Percent

Sole Proprietorship

7,931,205

45.53

9,348,434

54.47

Partnership

217,82640.87

285,247

59.13

17,162,053
482,440

Cooperative

6,304

34.19

12,13265.81

18,435Faith Based Organization

19,762

100

-

0.00

19,762

8,175,096

47.66

8,977,272

52.34

Total

17,152,368

162

May 2012

Table 85 Major Government Policy That Affect Business Most Favourably
PolicyNumber

Percent

Sanitary inspectors

168,141

Good roads

539,898

3.13

Importation of raw materials

70,1740.41

Job creation

34,9140.20

Reduced tax

219,251

1.27

Exchange rate

44,301

0.26

Intervention Fund

322,287

1.87

Improved Power supply

237,087

Political stability

93,315

0.54

Banking reform

62,9250.36

Policy on fertilizer production

132,917

Favourable atmosphere for business

888,608

5.15

Not Stated

14,449,273

83.70

Total

17263091.32

100

0.97

1.37

0.77

Table 86 Major Government Policy That Affect Business Most Unfavourably
PolicyInadequate power supply

163

Number
717,595

Percent
4.16

Excess Taxes

2,070,216

11.99

Demolition
Traffic Officials
Sanitation Official
Lack of Infrastructure

167,363
39,137
126,160
431,655

0.97
0.23
0.73
2.50

High cost of transport

293,867

1.70

High cost of petrol

397,0032.30

High cost of permit

103,546

0.60

Withdrawal of subsidies

1,910,880

11.07

Introduction of sharia
High cost of living

46,633
295,523027
1.71

Seizure of goods

29,60100.17

Lack of social amenities

616,695

3.57

Banning goods
Introduction of GSM

5059,767
3,079

0.35
0.02

High cost of fund
Gov't policy of pension

251,552
36,3081.46
0.21

Embargo on loans facilities

156,297

0.91

From bank
Not Stated
Total

6,859
9,503,357
17,263,091

0.04
55.05
100`

May 2012

Table 87 Top Priority of Assistance
Assistance

Number

Percent

Provide financial institutions

1.13
173,896

Adequate transport facilities

2.03
312,514Adequate and regular power and water supply

3.84
590,374

Reduced rate of taxation

36,9130.24

Reduced charge for medical treatment

39,363

0.26

Reduced interest rate

2.30
354,046

Regular fuel supply at approved rate
Financing/Financial assistance

34,822

0.23

11,259,005

73.24

Provide farm inputs ((seeding, equipment, fertilizer etc)

3.30
507,543

Facilitate quality product
Provision of infrastructure (access roads, market, work space

17,2220.11

1,636,776

10.65

62,1080.40

Provide security
Provision of equipment spare parts/raw materials

1.52
234,144

Others0.75
114,931
15,373,658

Total

100

Table 88 Awareness of SMEDAN by Form of Ownership
Form of Ownership

Aware
NumberSole Proprietorship

Not Aware

Percent
4.73

Partnership
Cooperative790,606
27,413
1,525

Faith Based Organization

1,996

Total

Number

Total

Percent

15,909,197

95.27

16,699,803

6.62
8.27

386,956
16,910

93.38
91.73

414,369
18,435

10.10

17,76689.90

19,762

4.79

16,330,828

95.21

17,152,368

821,540

Table 89 Awareness of SMEDAN by State
STATE

Aware
Number164

Abia
Adamawa

41,47920,479Percent
10.18
5.05

Akwa Ibom

13,590

3.04

Not Aware
Number
Percent
365,949
89.82
384,782
94.95
433,999

96.96

Total
407,428405,261
447,589

May 2012

Anambra-0.00

499,070100.0

499,070

Bauchi

1,889

0.41

458,29799.59

460,186

Bayelsa

12,2132.91

408,02197.09

420,233

Benue

4,087

0.94

432,304

99.06

436,391

Borno

10,5442.28

452,46597.72

463,009

Cross River
Delta

21,2370.00
4.37

472,291
464,786

100.0
95.63

472,291
486,023

2.44

406,357

97.56

416,508

0.00

491,220100.0

491,22018.47

343,872

81.53

421,770-0.00

423,006

100.0

423,006

11,011
46,626

0.72
2.69
10.63

413,190397,750
391,876

99.28
97.31
89.37

416,183
408,761438,50235,732
14,171
14,327
804

0.68
4.10
0.00
3.66
3.02
0.19

544,743836,820525,742
372,543
459,554426,865

99.32
95.90
100.0
96.34
96.98
99.81

548,467
872,552
525,742386,714473,882
427,668

1.69
30.95

865,886
323,811

98.31
69.05

880,805
468,985

Ebonyi

10,152

Edo

-

Ekiti

77,898

Enugu
Gombe
Imo
Jigawa2,994

KadunaKano
Katsina
Kebbi
Kogi
Kwara

3,723

Lagos
Nassarawa

14,918145,173

Niger

42,85210.11

381,01489.89

423,866

Ogun
Ondo
Osun

1,066
1,251
9,449

0.23
0.25
1.96

470,706
489,509471,902

99.77
99.75
98.04

471,772
490,761
481,351

-

0.50
0.00

520,573424,079

99.50
100.0

523,209424,079

Rivers159,09627.18

426,14572.82

585,241

Sokoto46,59512.28

332,91287.72

379,507

Taraba39,571

10.97

321,11189.03

360,682-

0.00

364,806

100.0

364,806

968

0.25

384,68699.75

385,654

FCT

19,046

6.99

253,533

93.01

272,579

Total

825,576

4.78

16,436,177

95.22

17,261,753

Oyo
Plateau

2,636

Yobe
ZamfaraTable 90 Benefit from SMEDAN Services by State
STATE

Benefitted
NumberAbia

165

Not Benefitted

Percent

Number

Total

Percent-

0.041478.9

100.041478.9

Adamawa

1400.086

6.8

19079.35

93.220479.44

Akwa Ibom

776.1018

5.7

12813.69

94.3

13589.79

Bauchi1888.971

100.0

-

0.0

1888.971

May 2012

Bayelsa-

0.012212.67

100.0

12212.67

Benue

-

0.0

4087.403

100.0

4087.403

Borno

3000.638

28.5

7543.272

71.5

10543.91

Delta

-

0.0

21236.73

100.021236.73

Ebonyi-0.010151.51

100.010151.51

Ekiti

1866.957

2.476030.65

97.677897.6

Gombe

672.309422.45

2321.19477.5

2993.504

Imo

-

0.0

11010.8

100.011010.8

Jigawa-0.046625.96

100.046625.96

KadunaKano

3723.205
9608.739

100.0
26.8

26123.09

0.0
73.1

3723.205
35731.83

Kebbi

-

0.0

14170.83

100.014170.83

Kogi

976.4352

6.8

13350.89

93.2

14327.32

Kwara

-

0.0

803.6366

100.0

803.6366

Lagos

1880.798

12.613037.67

87.4

14918.47

Nassarawa

628.9914

0.4144544.5

99.6145173.5

Niger

-

0.0

42852.48

100.042852.48

Ogun

-

0.0

1065.751

100.0

1065.751

Ondo

1251.363

100.0

-

0.0

1251.363

Osun

-

0.0

9448.913

100.0

9448.913

Oyo

-

0.0

2635.969

100.0

2635.969

Rivers-0.0

159095.9

100.0

159095.9

Sokoto-0.046595.09

100.046595.09

Taraba513.9082

1.239057.35

98.739571.26

Zamfara967.8296

100

-

0.0

967.8296

FCT

-

0.0

19045.81

100.019045.81

Total

29156.33

3.579642096.46837

825576.4

Table 91 Benefitted from SMEDAN by Form of Ownership
Form of OwnershipBenefitted
NumberSole Proprietorship

Percent

Number

Total

Percent

25,6583.0

822,305

97.0

847,962

Partnership0028,387100

28,387

Cooperative

0

0

1,525

100

1,525

Faith Based Organization

0

0

1,996

100

1,996

25,6582.9854,21397.1

879,870

Total

166

Not Benefitted

May 2012

Table 92 Ranking of SMEDAN Services Received
Ranking

Entrepreneurshi
p Training

Vocational Skill
Upgrading

Facilitation ofAccess toMarketFacilitation oAccess to
FinanceBusiness
Counseling/M
onitoringNo.

Facilitation of
Product Quality
Control &Certification

Facilitation ofAccess to
Information

Others

No.

%

No.

%

No.

%

No.

%

%

No.

%

No.

%

No.

1

57,0396.3

13,941

1.6

21,232

2.4

21,163

2.4

901

0.1

97.3

3,540

0.4

62,339

6.9

2

91.7

832,627

94.6

0.8

0.3

3,155

0.4

0.4

827,52
8
901

91.7

1.6

822,71
1
8
3,023

96.7

0.5

828,13
0
2,403

96.9

4,602

836,27
8
6,863

94.3

1.6

838,16
7
14,14394.0

3835,61
2
14,149825,35
3
1,265

4

1,447

0.2

11,449

1.3

9,375

1.1

7,514

0.8

4,714

0.6

5,285

0.6

4,354

0.5

1,971

0.2

5

1,730

0.2

9,242

1.0

2,176

0.2

5,782

0.7

7,608

0.9

2,075

0.2

6,906

0.8

1,099

0.1

6

-

0.0

6,547

0.7

3,316

0.4

5,697

0.6

2,850

0.3

5,839

0.7

4,824

0.6

5,518

0.6

7

838

0.1

2,113

0.2

2,930

0.3

3,014

0.3

8,421

1.0

3,789

0.4

3,340

0.4

2,821

0.3

8

-

0

-

0

-

0

-

0

-

0

-

0

1,099

0.1

-

0

Total

910,815

100

880,521100

891,34
0

100

901

0.1

855,02
7

100

1,099

0.1

969

0.1

902,17
6

100

0.

%

Table 93 Ranking of Major Problem Militating Against Businesses in Nigeria
Table 4.2.37

Ranking of Major Problem Militating Against Business in Nigeria

Lack ofaccesstoFinance

Lack of
work
space

Weak
Infrastr
uctureLack ofEntrepreneurship

Obsole
te
Equip
ment

Lack
of
acces
s to
R& D

Inconsistent
policies

TransportationLackofgovernment
Support

Inadequate
PowerSupply

Exce
ss
Tax

High
InterestRate

Subsidi
es

84.2

3.5

4.6

12.1

50.2

1.8

3.6

1.9

2.1

2.4

2.7

2.7

4.0

4.5

4.8

37.6

32.2

16.2

14.8

13.9

34.7

37.8

38.2

41.0

12.1

34.4

18.4

12.7

14.4

10.3

1.9

0.8

1.6

0.9

9.2

9.3

25.8

12.2

17.0

10.4

1.9

1.8

0.4

6.3

6.5

8.1

33.5

14.1

10.2

1.2

0.3

6.6

5.3

9.5

14.9

27.2

11.1

0.3

11.7

2.1

2.4

8.1

9.3

0.1

0.3

0.1

0.0

0.3

0.0

0.0

0.1

0.1

100

100

100

100

167

Illitera
cy

None

10.4

11.3

17.6

44.7

48.3

60.1

48.9

2.6

3.7

14.2

6.4

8.9

21.3

6.8

9.6

5.4

4.6

5.7

2.8

5.8

33.5

16.6

10.9

8.3

10.0

0.9

1.4

15.2

6.5

16.9

6.2

5.3

4.5

32.9

5.8

25.6

4.3

0.4

0.6

0.4

0.7

0.8

0.7

1.1

49.2

8.3

2.6

1.8

1.9

2.2

1.4

1.3

0.2

0.5

7.6

1.8

18.8

7.0

2.9

1.3

2.1

2.0

2.4

100

100

100

100

100

100

100

100

100

100

100

0.1

May 2012

Table 94 Personal Insurance of Owners

Form of Ownership

Insured Self
NumberDid Not Insure Self

Percent

Number

Percent

Sole Proprietorship

278,849

1.66 16,524,207

98.34 16,803,056

Partnership

11,454

3.23

343,59696.77

355,050

Cooperative-0

14,487100

14,487

Faith Based
Organization
Total

1,996

11.93

14,731

88.07

16,727292,299

1.7 16,897,022

98.3 17,189,320

Table 95 Personal Banking Relationship of Owners
Form of Ownership

Had Personal Banking
Relationship
Number2,899,873

Sole Proprietorship

No Personal Banking
Relationship

Percent
17.26

Number13,903,183

Percent
82.74

16,803,056

Partnership

76,587

21.57

278,46378.43

355,050

Cooperative

12,420

85.73

2,067

14.27

14,487

Faith Based Organization
Total

4,284

25.61

12,44374.39

16,7272,993,164

17.41

14,196,157

82.59

17,189,320

Table 96 Qualification Attained by Workers
Form of Ownership

Primary

SecondaryTechnical

NCE/ND

B.Sc/HND

Post
Graduate

Non-Formal
Education

No
Education

Sole Proprietorship

16.44

15.64

8.78

9.00

8.54

8.58

14.14

18.89

100

Partnership

25.55

25.28

3.22

4.57

3.68

2.87

11.51

23.32

100

Cooperative

27.56

26.42

5.92

13.50

5.92

5.92

8.84

5.92

100

Faith Based Organization

20.53

10.51

12.02

12.02

12.02

12.02

12.02

8.85

100

168

May 2012

Table 97 What SMEDAN Can do to Alleviate Some of the Problems
Ranking

Total

Entrepreneurship
Training

Vocational Skill
Upgrading

Facilitatio
n ofAccess toMarketFacilitationof Access toFinanceBusiness
Counselin
g/Monitoring

Facilitati
on ofProduct
Control

1

21.87

6.91

11.87

54.08

4.19

3.21

Facilitationof AccesstoInformatio
n
4.01

2

30.10

30.20

42.19

19.48

17.39

15.74

3

19.45

20.68

17.47

7.53

11.51

4

12.91

14.69

10.29

9.90

5

7.36

10.21

7.90

6

4.07

8.35

7

3.24

8
9

Transportation

Periodic
visit

None

7.22

10.1
5
44.7
7
2.53

7.80

Inadequate
power
Supply
8.76

15.48

39.29

44.18

45.62

10.65

9.71

4.92

3.96

4.01

13.15

12.88

12.68

12.15

9.68

15.06

3.71

26.01

18.02

15.40

13.29

16.30

14.99

4.55

2.62

14.67

25.91

12.33

4.65

6.89

4.07

15.0
0
16.0
9
3.35

6.58

3.84

1.10

10.07

10.67

27.45

2.65

2.34

2.22

2.10

0.51

1.12

0.73

0.72

1.42

1.52

1.90

12.52

4.55

4.08

4.10

0.50

1.27

1.16

0.85

1.59

1.41

1.04

2.74

3.34

2.73

1.89

100

100

100

100

100

100

100

100

100

100

100

Table 98 Business Plan by Ownership
Form of Ownership

Have Business Plan

No Business Plan

Number7,434,080

Percent
44.59

Number9,236,240

Percent
55.41

16,670,320

Partnership

143,67740.94

207,25259.06

350,929

Cooperative

10,388

71.71

4,098

28.29

14,487

Faith Based Organization

5,761

34.44

10,96765.56

16,727

7,593,906

44.53

9,458,557

55.47

17,052,463

Sole Proprietorship

Total

Table 99 Membership of Association
Association

Percent

None

14,933,001

86.50

Trade Association

1,378,122

7.98

Professional Association

154,1810.89

Technical Association

76,2840.44

Cooperative Society

577,559

3.35

Faith Based Organization

136,2410.79

Social Organization

1,686

0.01

Road Transport Association

4,547

0.03

Foundation

733

0.00

Others739

0.00

17,263,091

100

Total

169

Number

May 2012

Table 100 Micro, Small, Medium Enterprises (MSMEs) Nominal GDP (Nairamillion)
SECTOR
1

Micro

Small

MediumTotal MSME
GDP

Total GDP by
Sector7,174,496.33

2,605,244.95

325,377.40

10,105,118.68

10,310,655.64

MSME
Ratio toTotal (%)
98.01

1,943.25

16,193.79

12,833.55

30,970.60

45,691.79

67.78

2

Agriculture, Hunting, Forestry
and Fishing
Mining and Quarrying

3

Manufacturing

47,023.02

188,092.08

174,809.83

409,924.93

643,070.22

63.74

4

Building and Construction

1,934.61

7,738.45

32,777.55

42,450.62

394,666.15

10.76

5

Wholesale and Retail Trade:
Repair of Motor Vehicles andHousehold goods
Hotels and Restaurants

183,075.18

2,171,612.18

805,530.81

3,160,218.17

4,648,696.98

67.98

4,795.50

31,970.00

9,452.01

46,217.51

113,791.81

40.62

Transport, Storage andCommunications
Financial Intermediation

51,010.97

83,464.61

180,116.21

314,591.79

791,543.34

39.74

4,925.75

15,762.40

6,304.96

26,993.10

507,799.25

5.32

1,083,974.42

235,130.77

17,392.13

1,336,497.32

1,348,226.89

99.13

10

Real Estate, Renting andBusiness Activities
Education

4,487.28

8,413.66

14,022.76

26,923.70

56,091.04

48.00

11

Health and Social Work2,950.98

3,058.62

3,195.60

9,205.20

12,470.22

73.82

12

Other Community, Social andPersonal Service Activities
Totals by MSME classification

308,578.37

59.91

62.60

308,700.88

308,764.84

99.98

8,869,195.68

5,366,741.41

1,581,875.41

15,817,812.50

19,181,468.17

6
7
8
9

Total GDP at Current BasicPrices (Nominal)

33,984,754.13

Table 101 Contribution to Each GDP Economic Activity (%)
Table 4.3.2: Contribution of MSME to Each GDP Economic Activity (Percentage)170

SECTOR

Micro

Small

MediumTotal

1Agriculture, Hunting, Forestry and Fishing

69.58

25.27

3.16

98.01

2

Mining and Quarrying

4.25

35.44

28.09

67.78

3

Manufacturing

7.31

29.25

27.18

63.74

4

Building and Construction

0.49

1.96

8.31

10.76

5

3.94

46.71

17.33

67.98

6

Wholesale and Retail Trade: Repair of Motor
Vehicles and Household goods
Hotels and Restaurants

4.21

28.10

8.31

40.62

7

Transport, Storage and Communications

6.44

10.54

22.76

39.74

8

Financial Intermediation

0.97

3.10

1.24

5.32

9

Real Estate, Renting and Business Activities

80.40

17.44

1.29

99.13

10

Education

8.00

15.00

25.00

48.00

11

Health and Social Work

23.66

24.53

25.63

73.82

12

Other Community, Social and Personal Service
Activities

99.94

0.02

0.02

99.98

46.54

May 2012

Table 102 Initial Start-Up Capital at Inception (N '000)
AMOUNT (N‟000)
Below 50
50-100101-200
201-300
301-400
401-500
501-600
601-700
701-800
801-900
901-1000

TOTAL NUMBER
14,062,562
2,340,052
589,533
191,853
90,557
125,480
23,702
20,10918,27912,27950,964

Above 1000
Total

61,135
17,586,352

PERCENTAGE
80
13.3
3.4
1.1
0.5
0.7
0.1
0.1
0.1
0.1
0.3
0.3
100

Table 103 Personal Insurance Owners

Form of Ownership

Sole Proprietorship
Partnership
Cooperative
Faith Based Organization
Total

Self Insured

Not Self Insured

Number

Percent

Number278,849
11,454
1,996
292,299

1.66
3.23
0.00
11.93
1.70

16,524,207
343,596
14,487
14,731
16,897,022

TOTAL

Percent
98.34
96.77
100
88.07
98.30

16,803,056
355,050
14,487
16,727
17,189,320

Table 1044 Total Number of Workers by Sector as at December 2010

SECTOR
Agriculture
Mining & Quarrying
Manufacturing
Construction
Wholesale & Retail Trade, Repair ofMotor Vehicles and household goods
Hotels and Restaurants
Transport, Storage and Communications
Real estate, Renting and businessactivities
Education
Health and social work
Other community, social & personal
service activities
Total

171

Persons Engaged
Number
Percent
3,256,159
23.3
30,5480.2
2,629,630
14.2
449,785
4.2

Owners of Enterprise
Number
Percent
2,633,041
15.7
27,3650.2
2,831,642
16.9
556,133
3.3

Total
Number
Percent
18.2
5,889,200
0.2
57,91316.9
5,461,271
3.1
1,005,918

7,748,316
299,69949.2
1.0

8,884,265
300,324

53.1
1.8

16,632,581
600,02351.4
1.9

520,980

3.9

635,203

3.8

1,156,183

3.6

186,661
37,3241.2
0.3

210,115
33,2591.3
0.2

396,776
70,583

1.2
0.2

6,339

0.1

12,7120.1

19,0510.1

476,020
15,641,460

2.5
100

609,887
16,733,946

3.6
100

1,085,908
32,375,406

3.4100