President Bola Tinubu has said 21 shared facilities established across 19 states and the Federal Capital Territory are supporting businesses and an estimated 650,000 jobs.

The facilities, established under the Federal Government’s National MSME Clinics initiative, provide entrepreneurs with access to equipment, electricity and production infrastructure without requiring them to bear the full cost of setting up such facilities themselves.

President Tinubu disclosed this in a statement on Monday while highlighting the government’s efforts to address infrastructure and equipment challenges facing micro, small and medium enterprises (MSMEs).

According to the President, many small businesses have the skills and ideas to expand but struggle to access the equipment and infrastructure needed to increase production.

He said the shared MSME hubs were designed to reduce some of those barriers by allowing entrepreneurs to use modern production facilities without making large upfront investments.

He cited tailors and food processors as examples of businesses that could benefit from the model.

“A tailor should not need millions of naira to buy industrial machinery before she can grow her business. A food processor should not have to build a factory before producing at scale,” he said.

The President said access to shared facilities could allow businesses to increase production while reducing their operating costs.

“When small businesses can produce more, at lower cost, they become more competitive. They grow. They employ more people. They create income and opportunity for Nigerian families.”

MSME support

The initiative comes as the Federal Government expands programmes aimed at improving access to finance, equipment, skills and markets for small businesses.

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The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), which implements several government MSME support programmes, has previously identified access to finance, infrastructure and markets among the challenges confronting small businesses.

The government has also introduced other interventions aimed at improving access to credit. These include the National Credit Guarantee Company (NCGC), which provides guarantees to encourage financial institutions to lend to businesses and other eligible borrowers.

President Tinubu noted that the government’s approach was focused on removing barriers that prevent entrepreneurs from turning their skills and ideas into sustainable businesses.

“Our job is to remove those barriers,” he said.

He added that strengthening small businesses would help create employment, increase household incomes and expand economic activity.

“Giving Nigerian enterprise the tools to succeed is how we build prosperity from the ground up,” President Tinubu said.