Discussing the role of AI in enhancing agricultural productivity and efficiency in Nigeria

Agriculture has remained the pillar of society in every civilization and Nigeria is no exception. Nigeria is blessed with rich agricultural resources and a diverse climate that supports a wide range of crops. Despite its vast agricultural potential, like that of other countries, this country has also strived to meet the huge demands for food items. As per the statistical records,  the population of Nigeria is predicted to exceed 400 million by 2050. The emergence of the online community in Nigeria is currently shaping the entire arena and it is allowing agricultural endeavours to derive varied valuable insights regarding how to overcome the agrarian hindrances. Here have a look at the overview of the Nigerian agricultural sector that is closely associated with the total GDP of this country. Let’s begin. 

Overview Of The Importance of Farming in Nigeria

Agriculture is a cornerstone of Nigeria's economy, accounting for approximately 22-25% of the nation's GDP in recent years. As per the latest data, in the second quarter of  2023, the agricultural sector generated around 21 percent of Nigeria’s GDP. If you consider it from the perspective of employment, the agricultural sector of Nigeria is one of the most important employers as it offers 36 percent of job opportunities to the overall population of this country. The proliferation of Nigerian startups , especially the ones that rely on agricultural offerings is opening up new avenues for the young population. These statistical data items are the clear witness of the fact that farming is essential in Nigeria from ensuring food security to the overall growth of the nation.

Roles of AI in enhancing the agricultural productivity in Nigeria

Artificial Intelligence or AI is one of the most transformative technologies that is reshaping the multiple industries across the globe and at the same time, it is cultivating hope for the agricultural domain of Nigeria. The developmental power of AI is enabling the agricultural sector of Nigeria to break free from the shackles of seasonal and climate-related issues. Here we have mentioned some of the roles of AI that can prove to be game-changing for Nigerian agriculture.  

Precision Agriculture

Precision agriculture is an integral area where AI has continued to make significant strides. Technologies like drones and IoT sensors take part in the collection of real-time data on crop health and environmental conditions. AI processes this data to offer tailored recommendations on irrigation, fertilization, and pest management. For instance, organisations like AirSmart are capitalising on AI for water optimisation and fertilizer usage based on specific field conditions. In the best online community in Nigeria , precision agriculture, backed by AI is now in top trend and it is helping the modern youths to experiment with these technologies to reap the best results. 

Supply Chain Optimization

AI is conducive to enhancing the agricultural supply chain. Analyzing logistics related to transportation routes, market demand, and storage conditions, AI systems can help farmers make informed decisions. This optimization approach certainly reduces post-harvest losses, which are significant in Nigeria due to inadequate infrastructure. For instance, platforms like Crop2Cash are making complete use of AI to improve market access for smallholder farmers by connecting them directly with buyers. In this process, the reliance on the middlemen will reduce consequently. 

Capacity Building and Training

For the utilization of AI, it appears to be vital to equip the farmers with the relevant knowledge and capacity-building activities are required to be launched for this reason.  Programs like NITDA AI Developers Group are aimed at training thousands of individuals, including farmers on AI and machine learning applications that are pertinent to agriculture. These training sessions focus on practical skills that can be directly applied in farming practices.

Pest and Disease Management

Lastly, AI applications are revolutionizing the way of managing pests and diseases across the agricultural segment of Nigeria. The best part is that AI technology allows agricultural analysts to get a clear picture of the affected part of crops and to come up with a course of action accordingly. 

Wrapping Up 

The integration of AI into Nigerian agriculture is presenting a promising pathway towards enhanced productivity and sustainability. Utilization of AI for farming in Nigeria is no longer in the piloting phase, rather it is continuing to alter the whole trajectory with ease.  As these innovations continue to develop and expand, they hold the potential not only to increase food security but also in future they will uplift the agriculture-based Nigerian startups. 
 

AI-Driven Growth: How Nigerian Businesses are Increasing Revenue

As the competition all across the globe is getting intense, it is becoming crucial to seek new ways of thriving and here AI tools come in handy. These tech solutions are also known for their proven quality of changing the game of commerce. Countries like Nigeria which have emerging economies and a high potential for development are in dire need of utilising AI tools to double their GDPs in comparison to previous years. One of the benefits of AI is that its potential is not merely limited to enhancing operational efficiency. Still, it also takes part in opening up new revenue streams for established and budding business endeavours. Here have a look at the below points to find out how Nigerian businesses are capitalising on the power of AI for diversifying the revenue stream. 

4 Ways Through which AI in Nigeria is increasing the Revenue

 The Nigerian economy is among the rapidly growing economies in Africa, and this allows businesses to utilize advanced technologies like AI to propel growth through new-age strategies. AI in business appears to nations like Nigeria as a major weapon that can assist in coming up with creative solutions to critical problems. As per recent statistics, around 47% of Nigerian business endeavours have started to reap the advantages after incorporating AI. Another survey has suggested that 94% of Nigerian companies are making strategic use of AI in cyber security and 93% of companies are planning to implement AI in IT services for outstanding operational efficiency and high-quality outputs. Here are 4 ways through which the Nigeria business community is revolutionising the business operation, deriving the help of AI. 

Informed decision-making at the fingertips

AI has its proven ability to analyze vast amounts of data quickly. And this feature is adding a new edge to the decision-making processes in Nigerian companies. Through the employment of AI-driven analytics, commercial endeavours can derive actionable insights that inform strategic planning and resource allocation. This capability of AI in sectors like finance and retail is simplifying the process of service delivery and saving the time of the end users or consumers.  For instance, financial institutions are relying on AI to analyze customer data and predict spending patterns. These approaches not only enhance customer satisfaction but also drive revenue growth by aligning the offerings with consumer needs.

Transforming the way of customer engagement

Be it the bustling streets of Lagos or the landscapes of Abuja, in Nigeria, conversational AI is an absolute game changer. From the Healthcare to the banking sector, AI chatbots in Nigeria are prevalent everywhere and it is reshaping the trajectory of business. As reported by Gupshup, the BFSI sector's chatbot market alone was valued at $600 million in 2021. As per the projections, in the coming years, all the industrial verticals of Nigeria are likely to witness substantial growth under the impact of the rapid adoption of AI. 

Offering support to small businesses and startups

The Nigerian government and private sector in the current context are recognizing the significance of creating an environment conducive to innovation. Even initiatives like the Google AI Fund are aimed at supporting local startups by developing AI solutions for addressing Nigeria's unique challenges. These initiatives are empowering entrepreneurs with funds and rewards. On the other hand, the community platforms in Nigeria are encouraging new-age business enthusiasts to come up with a store full of innovative products. However, AI integration across all sectors is solidifying Nigeria's commitment to becoming a leader in AI-driven innovation on the continent.

Changing the ways of business operation 

One of the most profound impacts of AI in Nigerian businesses is the ability to optimize business operations. Here the best part is that the implementation of AI chatbot in every part of the business is resulting in cost reduction and enhanced the degree of productivity that can hardly be achieved through the manual process.  As the majority of the population is inclining towards the community platforms in Nigeria , they are offering an impetus to the widespread adoption of AI for boosting the bottom line of businesses. 

Wrapping Up

As Nigerian businesses continue to explore the possibilities of AI, it is important to remember that this technology is a mighty tool for unlocking new avenues for growth and prosperity. AI-driven growth in Nigerian businesses is not just a trend but a testament to the resilience and creativity of the Nigerian youth. However, before embarking on the business race, it is a must-have idea to connect with an eminent Nigeria business community to stay updated with the current knowledge of business and the usage of AI. 

Exploring how startups in Nigeria are leveraging AI technologies to innovate and improve their services

Like that of the other countries of the globe, the landscape of Nigeria in the present context is buzzing with the innovative ideas of start-ups, and it is culminating in the integration of AI. The key trend in Nigeria is now that start-ups and small businesses are diving into AI to shake things up across different industry verticals. AI in Nigeria has emerged as a potential weapon that is allowing the business endeavors to come up with exclusive product or service offerings. Let’s take a look at the below pointers to identify how the startups in Nigeria are capitalising on the potential of AI for optimizing their service offerings. 

The ways through which Nigerian startups are revolutionizing the services

Transformation of the healthcare 

In Nigeria, AI in the healthcare market is anticipated to reach $0.13 Bn by 2030, and on the other hand, in 2022, the market growth rate is around $0.01 Bn. It clearly depicts the huge growth of AI in the emerging market like Nigeria, and it demands investment from both the public and private sectors. When the rise of AI and its thriving condition have given rise to a sense of fear among the professionals, 67.5% of healthcare professionals have accepted AI as a benevolent force. If you look at the recent data, you will end up with a complete list of the healthcare startups that are continuing to thrive in the commercial sphere. EpochZero, Octosoft, Hub Care Health, Mpharma, and others have remained at the forefront of the healthcare sector of Nigeria, ensuring the right care and treatment for the ailing. The eminent online community in Nigeria is also acting as a major platform to the startups for flaunting their innovative product and service offerings to the targeted segments. 

Enhancement of the agricultural practices

As agriculture has turned into a major part of the Nigerian economy, the startups are capitalizing on AI to help farmers grow more. In turn, it also reduces waste. Through the AI tools and solutions, farmers can monitor soil health, track crop conditions, and even predict yields. Zenvus in Nigeria is relying on the smart irrigation systems for analysis of the soil data to help them in making informed decisions. In return, you can experience higher productivity and top-quality crops. As a result, the chances of food scarcity will vanish automatically, and even the condition of Nigeria will continue to improve in the coming days. 

Implementation of AI in Education 

Artificial Intelligence Nigeria has reached such an extent that it has even taken part in optimizing the quality of education, and the startups in the present context are personalising the lessons for a unique learning experience. In Nigeria, edtech companies like Edves, Schoola, EduWidget, Proctorme, and so on have occupied the domain of education in the current scenario and delivered the custom learning experiences to the new-age learners. Nigerian startups this way are focussing on different niches like education and others to make the process of service delivery more fun-filled and engaging. 

Amping up the standard of financial services

The tech industry in Nigeria, under the veneer of startups, is utilising AI for various applications such as fraud detection, risk assessment, personalised banking experiences, and other significant financial activities. Through the analysis of customer data, these companies can come up with custom financial products that meet individual needs. On a contrary note, AI algorithms help in the identification of unusual transaction patterns. In turn, it enhances security and trust in the system of financial transactions. Nigerian tech startups are mitigating the dread of financial fraud and ascertaining a high standard of security at the same time. 

Bottom Line

As the landscape of AI in Nigeria is rapidly evolving, it is compelling Nigerian startups to remain at the forefront of this transformation. Through the utilisation of AI technologies, these start-up companies can not only improve their services but also address pressing challenges across varied industry verticals. Teaming up with the best online community in Nigeria , the budding business endeavours can stay ahead of the curve. 

Highlighting emerging AI startups in Nigeria and their contributions to the tech ecosystem

With a population of over 200 million, in the present time, Nigeria is emerging as the powerhouse of Africa. Nigeria's tech ecosystem has witnessed a surge of promising AI startups in recent years, with entrepreneurs capitalising on cutting-edge technological solutions to resolve not only the local maladies but also to drive innovation. The proliferation of the youth demographics and the increased degree of penetration are opening up new avenues for innovation and at the same time fuelling the growth of Nigerian startups . Here we are going to probe deep into the innovative breakthroughs that these promising and new startups are bringing to the forefront and they are leaving an indelible impact on the entire tech arena.

Overview of the growth of Nigerian 

From the beginning, the Nigerian economy has continued to depict resilience and growth and in the last few years, it has touched the zenith. As per recent statistics, the GDP of Nigeria has expanded by 3.19% in the second quarter of this current year. On the other hand, 50% of Nigeria's GDP stems from the service sector overall of this country and the information technology domain is also one among them. In addition to that, the tech sector of Nigeria is considered the fastest-growing sector. That's why if you are a business enthusiast or planning to start a venture with like-minded partners, tech startups will be the best option, to begin with, and to get the pulse of the Nigerian market effortlessly. Let's move to the next section to discover more. 

Top Emerging startups that are shaping the tech ecosystem

If you are on the quest to come up with some innovative startups that revolutionize the tech domain, this is your go-to destination. Here we have listed down the details of some startups that are making strategic use of AI to produce desired outputs. Let's dive.

Zindi

In the list of Nigerian tech startups, Zindi comes first and it paves the path for resolving real-world problems seamlessly. Being a pan-African marketplace of data science, Zindi is connecting companies, non-profit organizations, and government institutions with AI talent to address the pressing challenges across the continent. In reality, it is a platform for the data scientists to compete, coordinate and showcase their potential leading to fostering the exponential growth of the AI ecosystem in Nigeria. Such innovative business endeavours can now rely on the best community platforms in Nigeria for the better recognition in both national and international markets. 

MyCover.ai

Embarking on the commercial journey in 2021, MyCover.ai has continued to capitalise the innovative insurance solutions. This endeavour has resulted in making insurance policies more accessible to the commoners who were previously far away from it. Besides that, MyCover.ai is also shaping the market of insurtech and deepening the insurance penetration. 

Awarri

Awarri, another promising Nigerian startup that launched its AI research lab in 2023, is currently collaborating with the Nigerian government, Data.org. Behind this collaboration, there lies a noble intent of building the country's first large language model. Although relatively a new entrant in the domain of technology companies in Nigeria, Awarri has the potential to become a major force in the AI industry and to alter its trajectory for the betterment of human existence as a whole. 

Ubenwa Health

Last but not least, Ubenwa, has appeared as a Nigerian startup with an innovative intent.  It is developing an AI-powered solution to understand infants' health and needs from their weeping sounds. Collaborating with doctors in Nigeria, Canada, and Brazil, Ubenwa is working towards clinical validation studies to improve infant healthcare outcomes. As the rate of infant deaths in Nigeria is escalating at a rapid pace, this AI-driven healthcare initiative is expected to bridge the void between theory and practice and culminate in a top-notch degree of child care. 

Closing Thoughts

The growth of AI-driven initiatives in Nigeria is a dynamic process that reflects the country’s ongoing journey toward economic and social development.  Amidst such a booming position of AI in Nigeria, the initiative of enthusiastic entrepreneurs ultimately can steer the tech industry towards a new horizon and put an end to societal gloom. The best community platforms in Nigeria are also assisting these new startups to fetch targeted customers effortlessly.

Equity Merchants

Most startup equity is worthless until ONE of these happens:

Successful exit (rare)
Acquisition (also rare)
IPO (even rarer)
Until then? It's just numbers on paper. No dividends. No real value. Just promises.And most startups never reach these milestones. I have advised over 500 founders and seen first-hand how the allure of equity can lead both entrepreneurs and employees down a dangerous path. Today, and over the next few editions of this newsletter, I will explore the equity dilemma facing early-stage startups. I’ll explain why the common practice of dishing out equity like sweets is a recipe for disappointment and conflict. From overvaluation to governance nightmares, from vesting schedules to dividend discussions, we'll cover the critical issues that every founder and potential equity holder needs to understand. Our startup ecosystem is overdue for a reality check. Whether you're a founder looking to build a sustainable company or an employee considering an equity offer, I am about to challenge everything you thought you knew about startup equity.

The Equity Illusion
Imagine promising your unborn child to marry someone's son when your wife is just one month pregnant. You don't even know if you're expecting a boy or a girl. You don't know if they’ll grow up to like each other. You don’t know if the pregnancy will be successful. There's so much uncertainty around it. But then, the other person who you are making the commitment to, you are asking him to give you clear assurances and pay the bride price in advance. This is what early startup equity often represents.

We've all heard the story: the person who painted Facebook's first office took equity instead of cash and became a millionaire. It's a great story, but it's also incredibly rare. For every Facebook painter, there are thousands of employees who accepted below-market salaries for equity that never materialised into anything of value. They traded real work NOW for potential value LATER, and often ended up empty-handed. But the harsh truth is that the vast majority of startups never reach the milestones that would make their equity valuable:

Successful exits: These are rare. Most startups don't make it to this stage.
Acquisitions: Also uncommon. Even if a startup is acquired, the terms may not benefit all equity holders equally.
IPOs: The rarest of all. Going public is a dream that few startups achieve.
Until one of these events occurs, startup equity remains just numbers on paper. No dividends, no real value, just promises of a potential future payoff.

The hidden costs of early equity distribution
When founders dish out equity like it's sweets at a children’s party, they're often unaware of the hidden costs that come with this approach. Equity-holding employees are equally unaware of

For Founders
Startup founders often fall into one of two traps:

Overvaluation: Caught up in their vision, founders might say, "My company is worth a million dollars!" But based on what metrics? This optimism can lead to inflated expectations and future disappointment.
Undervaluation: Some founders, eager to attract talent, might undervalue their company. "What's 5% now? We'll make it big later!" This can result in giving away too much control too soon.
Both scenarios lead to problems down the line. Overvaluation can lead to disappointed employees when reality doesn't match expectations. Undervaluation can leave founders with little control over their own company. Meanwhile, as your startup grows and takes on more funding, early equity holders often face dilution. That 2% that seemed so valuable at the start might become 0.2% after a few funding rounds. Have you communicated this possibility to your equity holders?

The Motivation Mirage
Many founders use equity as a tool to create a sense of ownership among employees. The idea is that equity holders will be more motivated to contribute to the company's growth. It’s all well and good, but what happens when years pass and that equity still holds no real value? What happens if:

The company is acquired before they're fully vested?
The startup shuts down?
They leave after the cliff period?
Most equity agreements don't clearly address these scenarios, leading to confusion, disputes, and often worthless equity.

For Employees
When you offer equity, especially to early employees, you're asking them to trade certain work NOW for uncertain value LATER. The employee accepts a below-market salary for equity, works tirelessly for years, only for the company not to break even.

Meanwhile, most equity-holding employees never see:

Audited company accounts
Regular financial reports
Annual General Meetings (AGMs)
So, as an equity-holding employee, you are an "owner" without owner's rights. You have no say in major decisions, no insight into the company's true financial health, and often, no real way to benefit from your equity until a major event occurs.

Equity in early-stage startups is not a golden ticket. It's a complex tool that needs careful handling. But what if there was a way to address these issues and provide more immediate value to equity holders?

Why startups should consider paying dividends
When we talk about “startup equity”, the conversation usually revolves around future value—the big exit, the IPO, the acquisition. Almost no one ever mentions dividends.

You might be thinking, "Dividends? In a startup? That's crazy talk!" But hear me out. Paying dividends as a startup is a good idea because:

It proves business viability: Paying dividends shows that your business model works and generates real cash.
It gives immediate value to shareholders: Instead of always deferring value to some hypothetical future, dividends provide tangible returns now.
It forces financial discipline: When you have to consider dividend payments, you're forced to manage your finances more carefully.
I believe that any startup serious about long-term sustainability should initiate the dividend conversation after five years of operation.

Why five years? Most businesses that fail do so within the first five years. Surviving five years suggests you've built a sustainable framework and your business is a "going concern" with reduced likelihood of major challenges. After five years, if you're not considering dividends, you need to ask yourself why. I can hear the objections already: "But we need to reinvest all profits for high growth!" In the next newsletter edition(s), I'll dive deeper into how startups can implement dividend strategies without sacrificing growth. We'll explore innovative approaches to balancing shareholder value and reinvestment, challenge conventional wisdom about startup finances, and highlight the legal considerations.

Credit: Omoruyi Edoigiawerie

Discuss The Skills And Competencies Needed For The Nigerian Workforce To Thrive In An AI-Driven Business Environment 

No matter whether you are an established business owner or an enthusiast who is planning to venture into the dynamic commercial landscape, getting the right pulse of the market is mandatory. In 2024, you might have noticed how fast and dramatically things keep altering at a lightning pace. Digital transformation in the present context is no longer just a buzzword; it’s a reality that’s reshaping how companies will continue to operate, especially in Nigeria. With the rise of exponential growth in the arena of AI, businesses are finding innovative ways to streamline processes, hone the degree of customer experiences, and make smarter decisions. In this writing piece, we are going to delve deeper into the key skills that the Nigerian commercial sector requires now to reap the advantages of AI and it can also help in upliftment of the online community in Nigeria 

The Importance of Artificial Intelligence in Nigerian Business 

Nowadays AI’s integration has reached beyond mere automation and when it comes to Nigerian business, it has become a catalyst for innovative roles. As AI continues to weave its way into various industries such as finance, healthcare, agriculture, and others, there’s a growing need for employees to develop a fresh set of skills and competencies. As per Statista, the market size of AI is anticipated to reach USD 1.05 bn in 2024. So entrepreneurs hailing from Nigeria have the complete liberty of utilising AI technology for yielding the humongous profit results. 

Economic Impact of AI in Nigeria

As per a recent report of PwC, AI in the upcoming year is projected to add up to  $15.7 trillion to the global economy by the year 2030, for emerging economies like Nigeria, AI integration and full-fledged adoption of it will boost the GDP significantly and at the same time, it will end up generating more employment scopes for the citizens of this country. 

Industry-Specific Benefits 

Agriculture is a pivotal sector in Nigeria and owing to that, 36% of the total population of this country is associated with this sector.  AI technologies with innovative features like predictive analytics and machine learning are accelerating the process of yielding good crops and improving the process of resource allocation. On the other hand, in the healthcare sector, AI-powered diagnostic tools can improve diagnostic accuracy by 20-30%, leading to better patient satisfaction. 

Key Skills and Competencies Required for the Nigerian Workforce

Critical Thinking and Problem-Solving- 

In an AI-driven environment, it becomes essential to indulge in the process of critical thinking to fuel the development of innovative solutions for the business community in Nigeria. Here the conventional approach will no longer work to produce the desired standard of outputs. 

Decision Making-

To accommodate AI, it appears to be highly important to rely on the consolidated decision-making skill that aids in analyzing the variety of critical and complex ideas to come to a final decision for creating a win-win scenario. 

Effective Communication-

Communication skills are essential for employees to work effectively in teams, share knowledge, and coordinate with members across varied departments and organizations. An online community in Nigeria is facilitating effective communication among the youths and encouraging them to present creative ideas in the workplace. 

Adaptability-

Most importantly, employees must have the urge to learn in a new environment and adapt to it effortlessly.  

Digital Literacy-  

Last but not least, the digital literacy of the employees must be on point to make strategic use of AI and capitalize on its benefits.  

Final Thoughts

As the commercial landscape is rapidly evolving, to thrive in this sphere, it has become mandatory to stay informed and connected with the business community in Nigeria. To get a pulse on the AI industry trends, new entrepreneurs must train their employees with the required soft skills for superior business experience.  This holistic approach to workforce development will prove to be key in ensuring that Nigerian businesses remain competitive in the global economy.

Lagos State Disburses ₦‎25 Billion As Grants, Loans To SMEs 

Lagos State Government has disbursed about N25 billion in grants and loans to Small and Medium Enterprises, SMEs, through the Lagos State Employment Trust Fund, LSETF, to enhance productivity and economic growth in the state.

Governor Bababjide Sanwo-Olu disclosed this at a parley on Thursday during the 2024 Business Day Newspaper CEO Forum, with the theme “Governors in Conversation-Innovative Governance: Steering States through Economic Turbulence,” at Victoria Island, Lagos.

The Governor, who was represented by the Deputy Governor, Dr. Obafemi Hamzat, stated that the grants and loans have helped to empower entrepreneurs to flourish in doing their businesses and stimulate the economy.

According to Sanwo-Olu, “The Lagos State Employment Trust Fund over the past six years has given out close to twenty-five billion in terms of grants and assisting people with loans.

“In this case, single-digit loans were offered to them to sustain and train them on how to manage their businesses.”

more: https://www.vanguardngr.com/2024/07/lagos-govt-disburses-n25bn-as-grants-loans-to-smes/

ARTICLE: THAT SMALL BUSINESSES MAY THRIVE
EDITORIAL 

Globally, the Micro, Small and Medium Scale Enterprises (MSMEs) sector constitutes the spine of any country’s economy.  As small industry operators, they weather and overcome stiff competition from foreign operators to grow and keep jobs for locals. Today,

MSMEs account for 90 per cent of businesses, 60 to 70 per cent of employment and 50 per cent of the Gross Domestic Product (GDP) worldwide, according to the World Bank. In Nigeria, the Small and Medium Enterprises Development of Nigeria (SMEDAN) reports that MSMEs currently represent 96 per cent of the businesses in the country and contribute 75 per cent of the national employment. Unfortunately, this is a sector that has been neglected in Nigeria. On a day set aside by the United Nations for the MSMEs, it is important that all relevant authorities in the country move from rhetoric to concrete actions on how to lift the majority of our people out of poverty

https://www.thisdaylive.com/index.php/2024/07/01/that-small-businesses-may-thrive/#google_vignette

How SMEs in Nigeria, others can be drivers of growth – UNCTAD

Small and Medium-sized Enterprises (SMEs) are seen as important players in the global market, despite facing increased competition for large projects and a growing focus on regional markets.
A recent report by the United Nations Conference on Trade and Development (UNCTAD) said SMEs have a pivotal role in achieving sustainable development and can significantly contribute to cross-border economic growth, innovation, and job creation.

“In developed economies, notably in Japan and the Republic of Korea and in Europe, SMEs have been active international investors, especially in the period ranging from the 1990s until the financial crisis of 2008,” the report said.

It said while inward Foreign Direct Investments by SMEs is important, promoting outward FDI in developing countries can also bring development benefits, helping them grow, improve productivity and strengthen their resilience to external shocks.

https://businessday.ng/companies/article/how-smes-in-nigeria-others-can-be-drivers-of-growth-unctad/

Credit: Olamide Ologunagbe

Tax Relief for Small Businesses as Nigeria Overhauls Withholding Tax System

The Federal Government has announced significant tax reforms aimed at alleviating the burden on small businesses, manufacturers, and farmers by exempting them from withholding tax. This decision, approved by President Bola Tinubu and set to be formalized in the official gazette soon, marks a departure from the previous withholding tax system introduced in 1978. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, highlighted that the old system posed challenges such as ambiguity and inequity, particularly burdening businesses with low-profit margins.

Under the new regime, withholding tax rates will be reduced for businesses facing financial constraints, while measures to combat tax evasion and clarify deduction timelines are set to be implemented. Withholding tax, deducted at rates ranging from 5% to 10% on transactions, will no longer apply to qualifying small businesses, manufacturers, and farmers. Late filing penalties are set at N25,000 initially and N5,000 per subsequent month of non-compliance.

These reforms aim to streamline the tax system, enhance equity, and support economic growth by easing financial pressures on businesses. The announcement has been welcomed as a step towards fostering a more favorable business environment amidst ongoing economic challenges.

FMO, FCMB Sign $25 Million Agreement To Aid Small Businesses In Nigeria 

In a move aimed at bolstering Nigeria’s economic landscape, the Dutch Entrepreneurial Development Bank (FMO) and First City Monument Bank (FCMB) have inked a transformative $25 million NASIRA guarantee agreement. This initiative, funded by the European Commission, marks a pivotal step towards supporting agricultural ventures, youth initiatives, and women-owned small and medium enterprises (SMEs) in Nigeria, without the traditional requirement of collateral.

The NASIRA program, renowned for its innovative approach, empowers local banks to extend financial support to entrepreneurs typically considered too risky for conventional loans. This agreement highlights a strategic effort to stimulate job creation amidst Nigeria’s daunting economic challenges, including high unemployment rates and currency depreciation

Credit:Chioma Kalu