Lagos is Nigeria’s leading MSME hub with over 20 million people and a strong infrastructure that draws entrepreneurs. It has airports, seaports, and an appealing demography.

While Kano’s large, dynamic market attracts small businesses, the wealth of natural resources in Rivers State has spurred the development of infrastructure, which has established a solid business foundation.

According to the chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, Lagos and Kano have emerged as hubs for MSMEs because of their status as commercial centers. He, however, expressed doubt regarding Rivers State’s position in this respect. Yusuf noted that SMEs and entrepreneurship are usually more prevalent in Nigeria’s eastern states. Looking at the sectors that contribute to this growth, the PwC report disclosed that wholesale/retail trade and manufacturing sectors stand out as the most dominant contributors to MSMEs in Nigeria, comprising 25.3 percent and 22.5 percent, respectively.

The Nigerian Economic Summit Group’s 2024 outlook report reveals that key sectors with potential to lift millions out of poverty are missing in Nigeria’s economic growth. The report classified sectors into growth drivers, growth stagnators, and growth draggers. Policy adjustments and reform shocks, such as the naira redesign policy, have contributed to this deceleration.

Nigeria’s MSMEs, which account for about 80 percent of employment and over 40% of GDP, are crucial to the country’s economy. However, states like Bayelsa, Kebbi, and Taraba have the least MSMEs. PwC Nigeria’s senior partner, Sam Abu, highlights the need for affordable energy sources for MSMEs, emphasizing the need for government funding to support their needs.