Tackling high rates of poverty and low growth among MSMEs in Nigeria

Guest blog by Member Feese

This is a blog series written by the alumni of the Leading Economic Growth Executive Education Program at the Harvard Kennedy School. 65 Participants successfully completed this 10-week online course in May 2021. These are their learning journey stories.

My key learning from the Leading Economic Growth course is how to effectively define a challenge / problem using the 5-whys technique and not use the solution to define the problem. For instance, the definition of my first economic problem was lack of transportation infrastructure in Nigeria, however, I discovered that that definition was narrow and did not identify the main problem of why transportation infrastructure was lacking. Using the 5-whys technique, I was able to redirect my challenge to tackling high rates of poverty and low growth rate among Micro, Small and Medium Enterprises (MSMEs), the binding constraint, concentrating on transportation infrastructure. If poverty and growth rate are addressed, transportation facilities will improve.

According to the Nigerian Bureau of Statistics, the level of poverty in Nigeria is currently about 40% of the total population, 83 million people, with MSMEs contributing a large portion of that figure. MSMEs are a primary source of jobs, accounting for about 96% of businesses and 84% employment (PWC, June 2020). However, the economic climate faces challenges of poor infrastructure, unfriendly business environment, high incidence of informal sector, etc., which adversely affects the MSME sector. More specifically, the current COVID-19 pandemic has impacted negatively on the sector, which has affected household livelihoods across the country.

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