According to a statistical analysis of the state of the Nigerian economy in 2010 published on EconomyWatch.com, the contribution of small-scale industries to the Nigerian economy is so little as to be negligible. A 2014 economic update published online by the Oxford Business Group underscores this by pointing out that the International Monetary Fund is calling for Nigeria to do more to support small-scale enterprises.Continue Reading
An article defining small- and medium-scale industries in the Small Business Chronicle describes small-scale industries as businesses that use labor instead of large amounts of capital. The article cites the example of India as a country that has successfully used economic incentives to employ large amounts of people in cottage industries. The economy of Nigeria, on the other hand, is dominated by its dependence on the petroleum industry. Though it has the largest economy in Africa, the money is unevenly distributed. Large amounts of the population remain unemployed and poverty stricken.
Among the structural reforms to the Nigerian economy mention in the IMF's 2014 report, emphasis is on "boosting financial access to small- and medium-sized enterprises." The IMF hopes this will help reduce inequality and poverty as well as improve productivity and competitiveness. As the Oxford Business Group update points out, this would encourage long-term growth and ensure a more equal distribution of economic success.Learn more about Economics