SMEDAN AND NATIONAL BUREAU

OF STATISTICS COLLABORATIVE
SURVEY: SELECTED FINDINGS
(2013)

1|SMEDAN/NBS MSME SURVEY

Table of Content

1 Executive Summary ........................................................................................................................ 5

2 Introduction ....................................................................................................................................... 8
Preamble................................................................................................................................................ 8
Background to the Study ................................................................................................................. 9
Objectives of the Study.................................................................................................................. 10
Definition ............................................................................................................................................ 10
Relevance of MSMEs ...................................................................................................................... 11
3 Methodology ................................................................................................................................... 13
Introduction ...................................................................................................................................... 13
Objectives ........................................................................................................................................... 13
Coverage ............................................................................................................................................. 14
Scope .................................................................................................................................................... 14
Sample Design .................................................................................................................................. 15
Survey Instruments ........................................................................................................................ 16
4 Conclusion ....................................................................................................................................... 17
Policy Recommendations ............................................................................................................. 18
5 Selected Tables for Micro-Enterprises ................................................................................. 21
6 Selected Tables for Small and Medium Enterprises ....................................................... 38

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TABLE OF TABLES

Table 1 Distribution of Micro-enterprises by State ................................................................ 21

Table 2 Micro-enterprises by Economic Sector ....................................................................... 22
Table 3 Micro-enterprise Business Registration by Economic Sector ............................ 23
Table 4 Employment Generated in Micro-enterprises by State ........................................ 23
Table 5 Employment Generation in Micro-enterprises by Economic Sector and Sex
........................................................................................................................................................... 25
Table 6 Distribution of Micro-enterprises by Legal Status................................................. 26
Table 7 Distribution of Micro-enterprises by Economic Sector ........................................ 26
Table 8 Micro-enterprises’ Business Insurance by Economic Sector .............................. 27
Table 9 Distribution of Micro-enterprises by Initial Start-Up Capital Bands ............... 28
Table 10 Distribution of Micro-Enterprises by Source of Capital .................................... 28
Table 11 Micro-Enterprises’ Business Capacity Turnover (Monthly Average Sales),
2012 ................................................................................................................................................. 29
Table 12 Micro-Enterprises’ Business Capacity Turnover (Monthly Average Sales),
2013 ................................................................................................................................................. 29
Table 13 Micro-Enterprises’ Business Cost of Labour and Capital (Staff Emolument),
2012 ................................................................................................................................................. 30
Table 14 Micro-Enterprises’ Business Cost of Labour and Capital (including Staff
Emolument), 2013 ..................................................................................................................... 30
Table 15 Micro-Enterprises’ Total Administrative/Operating Costs, 2012 .................. 31
Table 16 Micro-Enterprises’ Total Administrative/Operating Costs, 2013 .................. 31
Table 17 Micro-Enterprises’ Daily Usage of Alternative Source of Power by Sector 32
Table 18 Micro-Enterprises’ Skills Gap by Economic Sector .............................................. 33
Table 19 Major Government Policy that Affects Micro-Enterprises Most Favorably 34
Table 20 Major Government Policy that Affects Micro-Enterprises Most Unfavorably
........................................................................................................................................................... 34
Table 21 Micro-Enterprises’ Priority Areas of Required Assistance ............................... 35
Table 22 Micro-Enterprises’ Awareness of SMEDAN by State ........................................... 36
Table 23 Micro-Enterprises’ Benefitted from SMEDAN by State ...................................... 37
Table 24 Small and Medium Enterprises by State .................................................................. 38
Table 25 Comparison of Total Employment by State, 2010 and 2013 ........................... 39
Table 26 Total Employment by Sex and Economic Sector................................................... 40
Table 27 Form of Ownership........................................................................................................... 40
Table 28 Distribution of Ownership by Sex and Economic Sector ................................... 41
Table 29 Distribution of Small and Medium Enterprises by Ownership Status and
Economic Sector ......................................................................................................................... 41
Table 30 Distribution of Small and Medium Enterprises by Economic Sector ............ 43
Table 31 Distribution of Enterprises by Start-up Capital .................................................... 44
Table 32 Distribution of Enterprises by Source of Capital ................................................. 44
Table 33 Average Monthly Sales Turnover by Economic Sector....................................... 44
Table 34 Business Insurance by Economic Sector .................................................................. 45
Table 35 Distribution of Enterprises by Daily Usage of Alternative Source of Power
and Economic Sector ................................................................................................................. 46
Table 36 Small and Medium Enterprises' Employees' Level of Education ................... 47
3|SMEDAN/NBS MSME SURVEY
Table 37 Small and Medium Enterprises' Skills Gap by Economic Sector ..................... 48
Table 38 MSMEs Contribution to National GDP, 2013 .......................................................... 49

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1 Executive Summary

There is growing recognition of the important role Micro, Small and Medium
Enterprises (MSMEs) play in economic development. They play a pivotal role
through several pathways that go beyond job creation. They are growth-
supporting sectors that not only contribute significantly to improve living
standards, but also bring substantial local capital formation and are responsible
for driving innovation and competition in developing economies. Governments at
all levels have undertaken initiatives to promote the growth and development of
MSMEs. The general perspective is that MSMEs are seen as accelerating the
attainment of broad socio-economic objectives, including poverty reduction,
employment generation, wealth creation, among others.

The 2013 National MSME Survey covered business enterprises in Nigeria

employing below 200 persons (Micro, Small and Medium Enterprises). The
survey was conducted in all the 36 States of the Federation and the Federal
Capital Territory, Abuja. For micro enterprises (employing 1-9 persons) data were
canvassed through the National Integrated Survey of Household (NISH)
Schedule. Also rural and urban areas where small (employing 10-49 persons)
and medium (employing 50-199 persons) enterprises are located were covered
through the National Integrated Survey of Establishment (NISE) Module.
Further, twelve (12) households enterprises were systematically selected per EA
making a total of 480 Households visited in each state and the FCT. This sample
was considered large enough to give estimates at state level from where states
and national estimates were aggregated. Under the establishment component,
4,000 Small and Medium Enterprises were selected for study across the country
in 13 sectors using the principles of Probability Proportional to Size (PPS) to
allocate number of establishments to states according to the concentration of the
establishments.

The sectors are:

i. Manufacturing
ii. Wholesale and Retail trade; Repairs of Motor Vehicles and Motor Cycles

5|SMEDAN/NBS MSME SURVEY

 iii. Accommodation and Food service Activities
iv. Mining and Quarrying
v. Construction
vi. Water Supply; Sewerage, Waste Management and Remediation
vii. Agriculture, Forestry, Fishing and Hunting
viii. Transport and Storage
ix. Information and Communication
x. Administrative and Support Services Activities
xi. Education
xii. Art Entertainment and Recreation
xiii. Other Services Activities

In view of the above, some of the findings of the survey are as follows:
 The total number of MSMEsas at 2013 stood at 37,067,416 (Micro-
36,994,578, Small- 68,168, and Medium-4,670).
 The initial start-up capital 68.35% of micro enterprises was predominantly
less than fifty thousand Naira, while small and medium enterprises were
predominantly less than ten million Naira.
 Lagos state has the highest number of small and medium enterprises
(11,663), while Kwara state has the least (226).
 Lagos state also has the highest number of micro enterprises (3,224,324),
followed by Oyo state (1,864,954), then Kano state (1,794,358). While the
FCT (482,365) and Nasarawa state (382,086)recorded the least.
 The main challenges confronting the operations of MSMEs in Nigeria as
revealed by the survey are access to finance and poor infrastructure,
inconsistency in government policies, poor support (business development
services), access to market, multiple taxation and obsolete technology
 The total number of persons employed by the MSME sector as at
December, 2013 stood at 59,741,211, representing 84.02% of the total
labour force.
 Female entrepreneurs accounted for 43.32% in the ownership structure of
micro enterprises as against 22.75% in small and medium enterprises.
 Most of the entrepreneurs interviewed are not aware of SMEDAN and
their services. The beneficiaries of SMEDAN Services are very minimal in
virtually all the states.
 Over 70% of the entrepreneurs do not have patent right, hence their
intellectual property are not protected.
 The ownership structure by age showed that the age bracket of 24-50
dominates. Hence youth entrepreneurs are dominant.

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  The three priority areas of assistance to MSMEs are access to finance,
provision of infrastructure and regular supply of power and water.
 Most of the MSMEs are not covered by any insurance policy, that is, most
of them are not insured.
 The skills gap by sector showed that qualified artisans are readily
available in most of the sectors surveyed.
 In terms of average capacity utilisation, most of the MSMEs are operating
below optimum capacity.
 Most of the enterprises are operating without a business plan and most of
them do not belong to any business membership association.
 MSMEs contribution to the Nation’s Gross Domestic Product in nominal
terms stood at 48.47% as at the period under review.
 MSMEs contribution to export stood at 7.27%
The survey recommends that the intervention programmes put in place to
ameliorate the challenges of the MSMEs should be strengthened.

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2 Introduction
Preamble

It is an established fact globally that the Micro, Small, and Medium Enterprises
sector is a key engine to economic growth and development. This sector is
responsible for most of the advances in new products and process, provides
most of the employment opportunities but is also a key indicator of the overall
performance of an economy. The dynamic nature of this sector also makes it
vulnerable to a high mortality rate occasioned by sudden shifts in economic
policy, global trends, global shocks in international markets and many
unforeseen situations. The lean nature and size of this sector, which underscores
its vulnerability, is also its key asset. It is flexible and can easily rise up to and
adapt to sudden change in situations locally and globally. These are some of the
underlying facts, which necessitated a change of focus in Nigeria’s economic
policy direction.

Nigeria’s population of over 160 million people with over 65% of that figure being
below the age of 35 makes a change of policy imperative. No country with the
abundant potentials and size in land and population can afford to maintain a
status as a rentier economy on a single commodity, oil. Therefore one of the few
alternatives open to policy makers was to look inward and seek to develop the
national economy through the MSME sector. Many efforts are going on
concurrently within the last Twelve years to boost this sector of the national
economy, starting from the creation of an Agency solely responsible for the
promotion and development of this sector (SMEDAN), implementation of the
NEDEP (National Enterprise Development Programme), creation of the MSME
national and state councils, YOUWIN, the revised National MSME Policy and
other funding access of the central bank of Nigeria and other development
banks. The MSME sector as an important catalyst for growth needs such
fundamental policy support. Government also believes that unlocking the key
potential of this sector also involves additional support in Agriculture and the
provision of regular and affordable power supply. Several efforts are underway in

8|SMEDAN/NBS MSME SURVEY

 boosting the generation and distribution of electricity nationwide. Credit facilities,
extension services in new farming techniques, value chain addition, and
enhancement in the supply of fertiliser are being pursued in the Agricultural
sector.

Background to the Study

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)

was established in 2003, to facilitate the promotion and development of the
Micro, Small and Medium Enterprises (MSMEs) sector in an efficient and
sustainable manner. The overall objective was reducing poverty through wealth
and job creation to facilitate socio-economic transformation. This necessitates
the need for accurate and reliable data for a strategic plan that will foster
economic transformation in Nigeria. To facilitate this objective the Small and
Medium Enterprise Development Agency of Nigeria (SMEDAN) and the National
Bureau of Statistics (NBS) conducted this national survey.

With the overall objective of reducing poverty through wealth and job creation
and facilitating national economic development, the Micro, Small and Medium
Enterprise are perceived as engine of socio-economic transformation in both
developed and developing counties. SMEDAN is striving to fill the gap of the
death and paucity of credible and reliable database, which is one of the main
constraints in the development of this sub sector.

In light of the above, the need for consistent and reliable database for MSMEs in
Nigeria is imperative. Hence the importance of this survey, however, SMEDAN
will continue to update and provide credible MSME data through collaboration
with both private and public institutions. The Agency through a robust MSME
date base will continue to evolve a strategic plan and programme towards vibrant
and virile MSMEs that will stimulate and trigger economic development in
Nigeria.

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Objectives of the Study

The main objective of this survey is to establish a credible and reliable database
for the MSME sector in Nigeria that does not preclude the importance of the
survey in:

i. Assessing the contribution of the MSME sector to GDP in Nigeria

ii. Knowing the number of MSMEs in the Nigerian federation on state
wide and sector by sector basis
iii. Identify the main challenges and constraints facing the MSME
sector in Nigeria
iv. Determine the contribution of the MSME sector to employment
generation in Nigeria
v. Determine the contribution of MSMEs to export
vi. Identify the number of MSMEs owned on gender basis
vii. Identify the ownership structure of MSMEs by age
viii. Identify the skills gap within the MSME sector
ix. Determine capacity utilisation within the sector
x. Ascertain the top priority areas for intervention and assistance to
the sector
xi. Identify financing windows for the MSME sector for raising low cost
finance.

Definition
As in developed economies, Nigeria with the introduction of the National Policy
on MSMEs has addressed the issue of definition as to what constitutes micro,
small and medium enterprises. The definition adopts a classification based on
dual criteria, employment and assets (excluding land and buildings) as shown
below.

S/N Size Category Employment Assets (=N= Million)

(excl. land and
buildings)
1 Micro enterprises Less than 10 Less than 5

2 Small enterprises 10 to 49 5 to less than 50

3 Medium enterprises 50 to 199 50 to less than 500

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  Micro Enterprises are those enterprises whose total assets (excluding land
and buildings) are less than Five Million Naira with a workforce not
exceeding ten employees.
 Small Enterprises are those enterprises whose total assets (excluding
land and building) are above Five Million Naira but not exceeding Fifty
Million Naira with a total workforce of above ten, but not exceeding forty-
nine employees.
 Medium Enterprises are those enterprises with total assets excluding land
and building) are above Fifty Million Naira, but not exceeding Five
Hundred Million Naira with a total workforce of between 50 and 199
employees.
If there exists a conflict on classification between employment and assets criteria
(for example, if an enterprise has assets worth seven million naira (N7M) but
employs 7 persons), the employment-based classification will take precedence
and the enterprise would be regarded as micro.

Relevance of MSMEs
It is evidently clear that the micro, small and medium enterprises could play a
catalytic role in the economic transformation of Nigeria. The role includes
substantial contribution of the sector to the gross domestic product, employment
generation, export, increasing local value addition and technological
advancement. Other measures advanced by the advocates of micro, small and
medium enterprises development in the country include:

i. The low level of capital required in the establishment of the enterprises.

ii. The large number of the establishment and their labour intensive modes of
operation guarantees employment for a large number of persons (labour
intensive).
iii. Inventions, adaptations, and general technological development are
common in these enterprises.
iv. A more equitable distribution of income is usually achieved in this sector.
v. Industrial diversification and a relatively more balanced regional
development are assured.
vi. The evolution of indigenous enterprise is common amongst these
establishments.
vii. General enhancement of the tempo of industrial development is visible
among these enterprises.

11 | S M E D A N / N B S M S M E S U R V E Y
viii. Tendency among these enterprises to become feeders of large-scale
enterprises and service products made by the latter.

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3 Methodology

Introduction
Following the successful production of a credible and reliable baseline data for
Micro, Small and Medium Enterprises (MSMEs) in 2010, the need for re-
assessment of the impacts of government policies and programmes on the
Nigerian MSMEs becomes imperative. This survey is a follow of the baseline to
ascertain the successes or otherwise of the policies and programmes of Small
and Medium Enterprises Development Agencies of Nigeria (SMEDAN) and to
also determine the contribution of these MSMEs to the Gross Domestic Product,
export and employment generation.

In general practice, the employment size of enterprises is the major factor used
in its classification into sectors worldwide. Following this principle, the
criterion/classification adopted for the survey was determined by the employment
size of enterprises as shown in the table below:

Sector Micro Small Medium Large

Employment Band Less than 10 10 – 49 50 - 199 200 and above

Objectives
The main objective of this survey exercise is to:
Principally ensure the currency of available data and its conformity with baseline
data aimed at providing a reliable and credible data for local and international
references that will stimulate and trigger growth and development of the sub-
sector in accordance with SMEDAN’s mandate.
Other objectives include:
1. Determine the contribution of these Micro, Small and Medium enterprises
(MSMEs) sub-sector e.g. manufacturing, building and construction, etc. to GDP
in Nigeria.
2. Determine the number and spread of Micro, Small and Medium Enterprises
(MSMEs) in Nigeria on the basis of geo-political zones and states.
3. Identify the challenges and constraints facing the operation of Micro, Small and
Medium enterprises in Nigeria
4. Identify the number of people employed in the MSMEs sub-sector.

13 | S M E D A N / N B S M S M E S U R V E Y
 5. Identify the number of MSMEs owned by women and men towards gender
equity.
6. Determine gender ownership of these MSMEs within age brackets, their
categories and sizes, access to finances as well as contribution to export.
7. Determine number of jobs created, level of capacity building to their employees.
8. Determine the growth rate of MSMEs in Nigeria.
9. Identify the number of MSMEs that are not registered with the Corporate Affairs
Commission
10. Determine the number of MSMEs that does not have an insurance policy.
11. Identify the number of MSMEs that have patent right.
12. Determine the number of MSMEs that operate with/without a business plan, etc.

Coverage
The survey was conducted in all the 36 states of the Federation and the Federal
Capital Territory (FCT), Abuja and it cut across both urban and rural enumeration
areas (EAs) in the country. The EAs selected for the study are those with Micro
Enterprises using National Integrated Survey of Households (NISH) Module of
the National Bureau of Statistics Local Government Frame.

In the establishment component, both urban and rural areas where small and
medium enterprises are located were also canvassed through National
Integrated Survey of Establishment (NISE) Module.

Scope
The subject areas covered in the two (2) modules include:
i. Holding identification
ii. Business Status
iii. Free Entry and Competition
iv. Input, Output, Expenditure and Receipts
v. Technical Support Services/Enterprises growth
vi. Level of employment
vii. Educational Qualification of workers
viii. Total revenue/Turnover
ix. Capacity Utilization
x. Inventory
xi. Production
xii. Source of working capital, etc.

14 | S M E D A N / N B S M S M E S U R V E Y
Sample Design
The frame of Enumeration Areas demarcated by the National Population
Commission for 2006 Housing and Population Census was used to select micro
enterprises households for the Household component of the survey while the
frame of Small and Medium Enterprises with the Business Enterprises Division of
National Bureau of Statistics was used for the establishment component.

The selected Enumeration Areas cut across the frame of Enumeration Areas in
each state depending on the concentration of these Micro Enterprises. Forty (40)
EAs were selected per state including the Federal Capital Territory, Abuja which
was equally treated as a state in both components of the survey.

Further, twelve (12) households with enterprises were systematically selected

per EA making a total of 480 Households with enterprises that were visited in
each state and the FCT, Abuja. This sample was considered large enough to
give a robust estimate at the state level from where states and national estimates
could be aggregated.

For the establishment component, 4000 Small and Medium Enterprises were
selected for study across the country in 13 sectors using the principles of
Probability Proportional to Size (PPS) to allocate number of establishments to
states according to the concentration of the establishments.

The sectors are:

xiv. Manufacturing
xv. Wholesale and Retail trade; Repairs of Motor Vehicles and Motor Cycles
xvi. Accommodation and Food service Activities
xvii. Mining and Quarrying
xviii. Construction
xix. Water Supply; Sewerage, Waste Management and Remediation
xx. Agriculture, Forestry, Fishing and Hunting
xxi. Transport and Storage
xxii. Information and Communication
xxiii. Administrative and Support Services Activities

15 | S M E D A N / N B S M S M E S U R V E Y
xxiv. Education
xxv. Art Entertainment and Recreation
xxvi. Other Services Activities

Survey Instruments
A generic questionnaire was adopted for both micro and the small and medium
enterprises. This was meant to allow easy administration of the questionnaires. A
very comprehensive manual of instruction was also adopted to explain in details
all that was required to fill the questionnaire properly and also serve as reference
material for the field staff.

16 | S M E D A N / N B S M S M E S U R V E Y
4 Conclusion
The survey covered Micro, Small and Medium enterprises employing 1-199
persons. The Micro aspect of the survey covered enterprises employing 1-9
person(s) and it is classified as informal sector. The formal sector (Small and
Medium) covered enterprises engaging 10-199 persons.

The survey generated a lot of data and the result is no doubt revealing,
considering the key findings. Micro enterprises dominated with highest number of
enterprises, while Small and Medium enterprises result showed strong
correlation in the number of enterprises recorded in states like Lagos, Oyo and
Kano to mention but few.

The immense financial assistance received from the Small and Medium
Enterprise Development Agency of Nigeria (SMEDAN) on the survey did not only
enhanced the capability of the National Bureau of Statistics (NBS) in achieving
high response rate but also gave a lot of credence to the result of the survey. The
calibre of officers used for the exercise accounted for the high achievement.
Adequate publicity was another factor that contributed to the success of the
survey.

On the other hand, the attitude of some enterprises who delayed their
questionnaire or outright refusal is regrettable. The adverse consequences of
these actions are far reaching to the nation in government’s planning and
transformation programmes for the benefit of the people. The Government
economic programmes and policy formulation cannot be meaningfully achieved
without reliable data on Micro, Small and Medium Enterprises (MSMEs) in
Nigeria.

This survey report which is the second in its series has presented a vivid
statistical report on Micro, Small and Medium Enterprises (MSMEs) activities in
Nigeria in the year 2013. It has revealed relevant statistics on MSMEs. activities.

17 | S M E D A N / N B S M S M E S U R V E Y
 The report also presents the contribution of MSMEs to the nation’s Gross
Domestic Product (GDP). It is expected that useful policy would emerge from the
major findings of this survey. The recommendations made in this report will assist
policy-makers in Nigeria in their ploy to move the economy forward.

Policy Recommendations
 A proactive strategy is necessary to address the 6 key constraints faced
by thesector:
- Access to finance
- Weak infrastructure
- Inconsistency of Government Policies
- Access to market
- Multiple taxation
- Obsolete technology
 Stable financial development, effective and secure financial systems and
targeted lending.
 Good institutions at all levels of government supporting and promoting
MSMEs. This will ensure corruption and regulatory burdens are minimized
and rule of law, land and property rights, creditors’ rights etc. are
overcome accordingly.
 Good infrastructure and facilities that encourage MSMEs to pool their
information and resources
 High level of entrepreneurship and sufficient human capital development
 Promotion of and access to innovation and technology and adequate
openness to foreign technology.
 Good policies that encourage stable exchange rates, low inflation,
minimize entry regulations and promote attainment of higher levels of
productivity.
 As the economy grows, appropriate rules and regulations that encourage
fair competition should be in place to guide the increasing number of
companies involved in the domestic and export markets.
 Stable policies targeted at MSMEs that provide sustained support and
guidance and encourage investment in the sector
 There is an urgent need for renewal and upgrading of MSMEs
infrastructure located in the existing Industrial Development Centres
through cluster development approach. The development process needs
to be implemented properly and should be strengthened with ample work
space and provision of cluster common infrastructure to enhance their
productivity.
18 | S M E D A N / N B S M S M E S U R V E Y
  MSMEs generally lack the understanding and ability to determine the
competencies that are required by an employee to fulfil his/her role. These
skill gaps exist in all the sectors. MSMEs will need to invest in training and
development that leads to skill development and job enhancement.
Government through SMEDAN should strive to provide a solution to the
skill gaps in the MSME sub-sector. This makes the issue of capacity
building an important area to focus upon. The building of new and
renovation of existing technical colleges is highly advised.
 The competitiveness of any economy depends on how efficient all the
resources in the process of production are utilized and how efficient these
are marketed, hence the entire chain of production has to be efficient. This
means that the process of production has to be cost efficient and meets
quality needs of the consumers. The operational cost of MSMEs should be
addressed towards attaining cost efficiency through the use of latest
technology. The issue of power outages and other basic infrastructure
such as access roads and transportation should also be addressed.
 Most of the MSMEs do not have patent right and their intellectual property
are not protected. The Ministry of Industry, Trade and Investment,
SMEDAN and NOTAP should assist the MSMEs in this regard by setting
up an intellectual property facilitation cell, which will provide a range of
intellectual property related services, such as prior art search, patent
landscape and interface for technology transfer.
 SMEDAN services to MSMEs should be restructured for positive impact.
The Agency should be able to provide a wide spectrum of technical
services to the MSMEs. These should include common facilities for
testing, tool room services, technology up-gradation, modernization,
quality improvement, training for entrepreneurship development, a number
of training for skill up-gradation, preparation of project and product
profiles, technical and managerial consultancy, assistance for exports and
advocacy to government on issues affecting MSMEs in Nigeria.
 On access to finance by MSMEs, SMEDAN should critically address this
constraint by evolving a Credit Rating Scheme and Credit Guarantee
Scheme for the sub-sector. This will make financing the sub sector
attractive to banks and other investors.
 Awareness/information dissemination of SMEDAN and SMEDAN activities
are very poor as revealed by the survey. The current knowledge
dissemination system is limited in its outreach. There is a need to develop
a better communication strategy and use of new age media tools.
 Most of the MSMEs are not registered. Hence, creating a huge informal
economy with its adverse implication on Government policies and

19 | S M E D A N / N B S M S M E S U R V E Y
 programmes. SMEDAN should strive to mainstream these huge informal
enterprises to the formal economy.
 Most of the sectors are operating below optimum capacity. SMEDAN
should endeavour to enhance their capacity.
The key to the economic emancipation of Nigeria lies in the generation of
sufficient financial revenue, foreign exchange, increased employment and the
opening of her borders to global competition. It is reasonable to say that this is
therefore firmly dependent upon the structured and orderly development of the
MSME sector.

20 | S M E D A N / N B S M S M E S U R V E Y
5 Selected Tables for Micro-Enterprises

Table 1 Distribution of Micro-enterprises by State

STATE NUMBER
ABIA 904,721
AKWA-IBOM 1,319,607
ANAMBRA 1,223,395
BAUCHI 944,503
BAYELSA 541,332
BENUE 1,479,145
CROSS RIVER 921,256
DELTA 1,536,158
EBONYI 577,216
EDO 898,084
EKITI 964,179
ENUGU 1,064,893
GOMBE 527,230
IMO 1,296,386
JIGAWA 820,001
KADUNA 1,635,453
KANO 1,794,358
KATSINA 1,216,604
KEBBI 692,104
KOGI 967,431
KWARA 717,909
LAGOS 3,224,324
NASARAWA 382,086
NIGER 977,240
OGUN 1,165,848
ONDO 1,026,770
OSUN 1,356,174
OYO 1,864,954
PLATEAU 786,504
RIVERS 1,749,911
SOKOTO 700,106
TARABA 513,973
ZAMFARA 722,360
FCT 482,365
Total 36,994,578

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Table 2 Micro-enterprises by Economic Sector

SECTOR 2013
NUMBER PERCENT
Agriculture 3,300,778 8.92
Mining and Quarrying 70,443 0.19
Manufacturing 4,887,395 13.21
Sewage, Waste Management and Remediation
Activities 7,875 0.02
Construction 731,303 1.98
Wholesale and Retail 20,224,627 54.67
Transportation and storage 1,760,932 4.76
Accommodation and Food Services 2,039,517 5.51
Information and communication 335,604 0.91
Administration and support services 213,724 0.58
Education 104,420 0.28
Arts, entertainment and Recreation 390,609 1.06
Other services 2,927,351 7.91
Transport, storage and communication 0 0.00
Hotel and Restaurant 0 0.00
Total 36,994,578 100.00

22 | S M E D A N / N B S M S M E S U R V E Y
Table 3: Micro-enterprise Business Registration by Economic Sector

ECONOMIC SECTOR REGISTERED

Agriculture 77,053
Mining and Quarrying 9,562
Manufacturing 173,213
Electricity, Gas, Steam and Air Conditioning 27,027
Water Supply, Sewerage 739
Construction 48,843
Wholesale and Retail 702,228
Transportation and Storage 74,142
Accommodation and Communication 55,667
Information and Communication 45,691
Financial and Insurance 10,325
Real Estate Activities 13,355
Professional Scientific Technical 20,355
Administration and Support Services 12,327
Public administration 7,726
Education 28,532
Human health and Social work 50,900
Arts, entertainment and Recreation 14,479
Other Services 109,292
Total 1,481,457

Table 4: Employment Generated in Micro-enterprises by State

STATE Sex
Male Female TOTAL

Number Percent Number Percent Number

ABIA 1,093,463 3.10 874,947 3.88 1,968,410
ADAMAWA 0.00 0.00
AKWA-
IBOM 1,101,991 3.12 1,062,345 4.71 2,164,337
ANAMBRA 741,653 2.10 699,395 3.10 1,441,047
BAUCHI 1,282,225 3.63 23,426 0.10 1,305,651
BAYELSA 325,322 0.92 293,108 1.30 618,430
BENUE 1,147,627 3.25 819,527 3.63 1,967,153
BORNO 0.00 0.00
CROSS
RIVER 804,170 2.28 643,940 2.85 1,448,110
DELTA 533,737 1.51 1,869,839 8.29 2,403,576

23 | S M E D A N / N B S M S M E S U R V E Y
EBONYI 889,667 2.52 240,756 1.07 1,130,422
EDO 755,873 2.14 527,277 2.34 1,283,150
EKITI 716,777 2.03 723,993 3.21 1,440,771
ENUGU 855,020 2.42 601,920 2.67 1,456,940
GOMBE 1,659,926 4.71 172,505 0.76 1,832,431
IMO 858,003 2.43 602,331 2.67 1,460,335
JIGAWA 778,176 2.21 161,931 0.72 940,106
KADUNA 2,071,929 5.87 295,531 1.31 2,367,461
KANO 2,009,734 5.70 327,544 1.45 2,337,278
KATSINA 1,682,090 4.77 273,144 1.21 1,955,234
KEBBI 1,034,035 2.93 59,897 0.27 1,093,933
KOGI 2,897,835 8.21 1,312,771 5.82 4,210,605
KWARA 438,935 1.24 574,264 2.55 1,013,199
LAGOS 2,379,713 6.75 3,197,299 14.17 5,577,011
NASARAWA 348,701 0.99 164,964 0.73 513,665
NIGER 725,552 2.06 246,391 1.09 971,943
OGUN 1,004,908 2.85 747,949 3.32 1,752,856
ONDO 282,442 0.80 845,032 3.75 1,127,474
OSUN 547,016 1.55 1,049,513 4.65 1,596,530
OYO 1,664,976 4.72 1,837,567 8.15 3,502,542
PLATEAU 911,418 2.58 288,342 1.28 1,199,760
RIVERS 1,158,797 3.28 1,395,049 6.18 2,553,846
SOKOTO 1,048,176 2.97 31,105 0.14 1,079,281
TARABA 509,727 1.44 51,712 0.23 561,439
YOBE 0.00 0.00
ZAMFARA 721,057 2.04 239,717 1.06 960,774
FCT 295,696 0.84 304,993 1.35 600,689
Total 35,276,366 100.00 22,560,025 100.00 57,836,391

24 | S M E D A N / N B S M S M E S U R V E Y
Table 5: Employment Generation in Micro-enterprises by Economic Sector and Sex

Sector
Male Female Total

Number Percent Number Percent Number Percent

Agriculture 5,763,161 16.35 1,232,210 5.45 6,995,371 12.10
Mining and Quarrying 162,877 0.46 14,954 0.07 177,832 0.31
Manufacturing 4,796,232 13.61 2,869,744 12.70 7,665,976 13.25
Water Supply, Sewerage 7,875 0.02 61,913 0.27 69,788 0.12
Construction 1,139,901 3.23 72,417 0.32 1,212,318 2.10
Wholesale and Retail 16,122,951 45.75 14,155,462 62.66 30,278,413 52.35
Transportation and Storage 2,224,601 6.31 133,773 0.59 2,358,374 4.08
Accommodations and Food 1,107,644 3.14 1,826,697 8.09 2,934,341 5.07
Services
Information and Communication 459,337 1.30 157,619 0.70 616,956 1.07
Real Estate Activities 0
Administration and Support 301,778 0.86 62,209 0.28 363,987 0.63
Services
Education 261,087 0.74 194,445 0.86 455,532 0.79
Human and Social work 0
Arts, entertainment and 606,658 1.72 225,805 1.00 832,463 1.44
Recreation
Other Services 2,156,202 6.12 1,539,746 6.82 3,695,948 6.39
Total 35,245,162 100.00 22,591,229 100.00 57,836,391 100.00

25 | S M E D A N / N B S M S M E S U R V E Y
Table 6: Distribution of Micro-enterprises by Legal Status

OWNERSHIP STATUS FREQUENCY

SOLE PROPRIETORSHIP 36,158,903
PARTNERSHIP 473,351
PRIVATE LIMITED LIABILITY COMPANY 219,429
COOPERATIVE 34,956
FAITH BASED ORGANISATION 997
OTHERS 106,942
Total 36,994,578

Table 7: Distribution of Micro-enterprises by Economic Sector

ECONOMIC SECTOR NUMBER

Agriculture 3,300,778
Mining and Quarrying 70,443
Manufacturing 4,887,395
Electricity,Gas, Steam and Air Conditioning 187,068
Water Supply, Sewerage 7,875
Construction 731,303
Wholesale and Retail 20,037,559
Transportation and Storage 1,668,108
Accommodation and Communication 1,931,126
Information and Communication 335,604
Financial and Insurance 43,298
Real Estate Activities 108,391
Professional Scientific Technical 111,961
Administration and Support Services 192,987
Public administration 10,216
Education 104,420
Human health and Social work 237,157
Arts, entertainment and Recreation 153,452
Other Services 2,833,875
Total 36,953,015
Missing/NA 41,563
Grand Total 36,994,578

26 | S M E D A N / N B S M S M E S U R V E Y
 Table 8: Micro-enterprises’ Business Insurance by Economic Sector

Sector Classification Insured Not Insured Total

Number Percent Number Percent

Agriculture 353,585 10.71 2,947,193 89.29 3,300,778
Mining and Quarrying 9,596 13.62 60,847 86.38 70,443
Manufacturing 202,896 4.16 4,678,356 95.84 4,881,253
Sewerage, Waste Management
and Remediation Activities 0 0.00 7,875 100.00 7,875
Construction 52,679 7.20 678,624 92.80 731,303
Wholesale and Retail 856,258 4.21 19,342,835 95.79 20,199,092
Transportation and Storage 198,541 11.83 1,552,913 88.17 1,751,456
Accommodations and Food
Services 72,949 3.35 18,748,001 96.65 20,785,951
Information and
Communication 33,361 10.17 294,752 89.83 328,113
Administration and Support
Services 14,464 5.79 196,364 94.21 210,826
Education 11,192 10.72 93,228 89.28 104,420
Arts, entertainment and
Recreation 33,491 1.40 357,117 98.60 390,609
Other Services 143,417 4.78 2,630,411 95.22 2,773,829
Total 1,989,796 5.39 34,910,113 94.61 36,899,909
Missing/NA 94,669

27 | S M E D A N / N B S M S M E S U R V E Y
Table 9: Distribution of Micro-enterprises by Initial Start-Up Capital Bands

AMOUNT (N ‘000) NUMBER

Below 50 25,284,047
50 - 100 5,328,769
101 - 200 3,321,920
201 - 300 978,266
301 - 400 413,326
401 - 500 503,340
501 - 600 131,363
601 - 700 105,012
701 - 800 91,734
801 - 900 53,422
901 - 1000 100,091
Above 1000 471,835
Total 36,783,126
Missing/NA 211,452
Grand Total 36,994,578

Table 10: Distribution of Micro-Enterprises by Source of Capital

SOURCE OF CAPITAL NUMBER

PERSONAL SAVING 28,885,499
LOAN 1,344,326
FAMILY SOURCE 8,681,701
COOPERATIVE/ESUSU 3,139,794
GRANTS 730,434

28 | S M E D A N / N B S M S M E S U R V E Y
Table 11: Micro-Enterprises’ Business Capacity Turnover (Monthly Average Sales), 2012

AMOUNT (N ‘000) NUMBER

Below 50 24,656,347
50 - 100 3,412,223
101 - 200 1,749,237
201 - 300 598,229
301 - 400 245,536
401 - 500 126,517
501 - 600 83,124
601 - 700 33,560
701 - 800 83,938
801 - 900 48,556
901 - 1000 70,022
Above 1000 254,472
Total 31,361,762
Missing/NA 5,632,816
Grand Total 36,994,578

Table 12: Micro-Enterprises’ Business Capacity Turnover (Monthly Average Sales), 2013

AMOUNT (N ‘000) NUMBER

Below 50 24,965,245
50 – 100 4,556,715
101 – 200 2,129,017
201 – 300 804,493
301 – 400 364,912
401 – 500 162,059
501 – 600 91,289
601 – 700 68,965
701 – 800 91,741
801 – 900 63,779
901 – 1000 78,678
Above 1000 355,163
Total 33,732,057
Missing/NA 3,262,521
Grand Total 36,994,578

29 | S M E D A N / N B S M S M E S U R V E Y
Table 13: Micro-Enterprises’ Business Cost of Labour and Capital (Staff Emolument), 2012

AMOUNT (N ‘000) NUMBER

Below 50 26,209,546
50 - 100 1,626,530
101 - 200 1,374,329
201 - 300 713,535
301 - 400 408,625
401 - 500 236,210
501 - 600 215,940
601 - 700 29,517
701 - 800 59,926
801 - 900 43,704
901 - 1000 24,000
Above 1000 126,383
Total 31,068,246
Missing/NA 5,926,332
Grand Total 36,994,578

Table 14: Micro-Enterprises’ Business Cost of Labour and Capital (including Staff
Emolument), 2013

AMOUNT (N ‘000) NUMBER

Below 50 25,131,464
50 - 100 2,050,451
101 - 200 1,571,633
201 - 300 645,781
301 - 400 479,364
401 - 500 396,536
501 - 600 202,210
601 - 700 60,531
701 - 800 155,654
801 - 900 82,692
901 - 1000 26,863
Above 1000 181,822
Total 30,985,002
Missing/NA 6,009,575
Grand Total 36,994,578

30 | S M E D A N / N B S M S M E S U R V E Y
Table 15: Micro-Enterprises’ Total Administrative/Operating Costs, 2012

AMOUNT (N ‘000) FREQUENCY

Below 50 20,462,346
50 - 100 4,111,183
101 - 200 2,445,413
201 - 300 1,008,387
301 - 400 635,063
401 - 500 312,630
501 - 600 188,231
601 - 700 276,201
701 - 800 92,719
801 - 900 58,806
901 - 1000 46,705
Above 1000 368,123
Total 30,005,805
Missing/NA 6,988,773
Grand Total 36,994,578

Table 16: Micro-Enterprises’ Total Administrative/Operating Costs, 2013

AMOUNT (N ‘000) FREQUENCY

Below 50 18,399,277
50 - 100 4,798,298
101 - 200 3,135,265
201 - 300 1,005,442
301 - 400 842,509
401 - 500 430,792
501 - 600 279,731
601 - 700 230,396
701 - 800 194,283
801 - 900 121,939
901 - 1000 80,634
Above 1000 500,097
Total 30,018,662
Missing/NA 6,975,916
Grand Total 36,994,578

31 | S M E D A N / N B S M S M E S U R V E Y
Table 17: Micro-Enterprises’ Daily Usage of Alternative Source of Power by Sector

1-5 HOURS 6-10 HOURS 11-15 HOURS 16-20 HOURS ABOVE 20 HOURS
Sector Classification Total

Number Percent Number Percent Number Percent Number Percent Number Percent

Agriculture 1,628,441 60.78 797,817 29.78 117,577 4.39 53,837 2.01 81,479 3.04 2,679,151

Mining and Quarrying 26,745 59.76 14,971 33.45 3,038 6.79 0 0.00 0 0.00 44,754

Manufacturing 2,491,346 61.80 1,132,167 28.08 304,126 7.54 54,644 1.36 49,040 1.22 4,031,324

Sewerage, Waste
Management and 2,295 32.16 4,840 67.84 0 0.00 0 0.00 0 0.00 7,136
Remediation Activities
Construction 326,406 59.68 149,204 27.28 45,257 8.28 10,062 1.84 15,970 2.92 546,899

Wholesale and Retail 9,262,230 59.64 4,719,945 30.36 1,033,745 6.58 142,528 0.91 388,130 2.51 15,546,577

Transportation and Storage 794,016 62.21 403,131 29.72 66,566 4.66 11,002 0.75 32,618 2.66 1,307,332

Accommodation and Food 838,265 52.12 559,232 36.19 132,407 8.68 13,895 0.93 31,296 2.09 1,575,094
Services
Information and 148,330 48.69 113,016 37.10 30,230 9.92 8,160 2.68 4,881 1.60 304,617
Communication
Administration and Support 83,990 49.56 83,499 46.10 3,170 2.04 0 0.00 3,559 2.29 174,219
Services
Education 43,396 46.87 47,585 51.40 709 0.77 0 0.00 891 0.96 92,581

Arts, entertainment and 202,993 60.00 106,697 32.10 33,221 5.52 1,903 1.57 3,489 0.80 348,304
Recreation
Other Services 1,389,279 56.46 800,150 32.56 168,792 7.00 42,442 1.83 53,799 2.15 2,454,461

Total 17,237,731 59.21 8,932,257 30.68 1,938,838 6.66 338,472 1.16 665,152 2.28 29,112,450

32 | S M E D A N / N B S M S M E S U R V E Y
Table 18: Micro-Enterprises’ Skills Gap by Economic Sector

Qualified Artisans
Qualified Artisans Not Readily
Sector Classification Total
Readily Available Available
Number Percent Number Percent
Agriculture 2,066,890 62.65 1,232,412 37.35 3,299,303
Mining and Quarrying 24,316 34.52 46,127 65.48 70,443
Manufacturing 2,798,249 57.44 2,073,256 42.56 4,871,504
Sewerage Waste
Management and
Remediation Activities 5,189 65.89 2,686 34.11 7,875
Construction 487,428 66.80 242,244 33.20 729,672
Wholesale and Retail 10,737,633 53.33 9,394,963 46.67 20,132,596
Transportation and Storage 973,152 55.13 784,490 44.87 1,757,642
Accommodations and Food
Services 978,659 48.01 1,055,046 51.99 2,033,704
Information and
Communication 185,804 56.63 142,309 43.37 328,113
Administration and Support
Services 10,154,464 74.04 59,259 25.96 213,723
Education 51,345 49.17 53,075 50.83 104,420
Arts, entertainment and
Recreation 260,392 68.24 130,216 31.76 390,609
Other Services 1,651,146 57.84 1,189,502 42.16 2,840,652
Total 20,400,877 55.40 16,421,489 44.60 36,822,365
NA/Missing 172,213

33 | S M E D A N / N B S M S M E S U R V E Y
Table 19: Major Government Policy that Affects Micro-Enterprises Most Favorably

POLICY FREQUENCY
ENVIRONMENT SANITARY 18,505,191
ROAD MAINTENANCE 19,701,440
INTRODUCTION OF RAW MATERIALS 9,752,374
JOB CREATION 11,754,288
TAXES 4,869,741
EXCHANGE RATE 4,120,167
INTERVENTION FUND 7,783,543
POWER SUPPLY 11,358,723
POLITICAL STABILITY 11,632,135
BANKING REFORM 6,340,532
FERTILIZER PRODUCTION 8,626,993

Table 20 Major Government Policy that Affects Micro-Enterprises Most Unfavorably

POLICY FREQUENCY
POWER SUPPLY 20,623,973
DEMOLITION 11,847,433
TAXES 15,519,701
TRAFFIC CONTROL 7,416,017
ENVIRONMENTAL SANITATION 7,995,490
INFRASTRUCTURE/SOCIAL AMENITIES 13,606,614
IMPORTATION OF FUEL 11,752,140
TRADE PERMIT 9,903,041
WITHDRAWAL OF SUBSIDIES 13,736,072
INTRODUCTION OF SHARIA 5,109,919
POVERTY ALLEVIATION 7,208,231
CUSTOM DUTIES 8,549,901
BANNING OF IMPORTANT OF GOODS 9,533,950
INTEREST RATE 8,255,754
PENSION 3,500,236
EMBARGO ON LOAN FACILITIES 9,491,992

34 | S M E D A N / N B S M S M E S U R V E Y
Table 21: Micro-Enterprises’ Priority Areas of Required Assistance

AREA OF ASSISTANCE FREQUENCY

PROVIDE FINANCIAL INSTITUTIONS 14,654,422
ADEQUATE TRANSPORT FACILITIES) 19,461,473
ADEQUATE & REGULAR POWER & WATER SUPPLY 23,587,698
REDUCE RATE OF TAXATION 11,944,544
REDUCED CARE FOR MEDICAL TREATMENT 10,321,108
REDUCED INTEREST RATE 6,687,029
REGULAR FUEL SUPPLY AT APPROVED RATE 13,381,413
FINANCING/FINANCIAL ASSISTANCE 26,531,151
PROVIDE FARM INPUTS(SEEDING,EQUIPMENT FERTILIZER ETC 9,744,275
FACILITATE QUALITY PRODUCT 6,955,317
PROVISION OF INFRASTRUCTURE(ACCESS ROAD,MARKET ETC) 17,527,950
PROVIDE SECURITY 17,034,964
PROVISION OF EQUIPMENT SPARE PARTS/RAW MATERIALS 4,647,038

35 | S M E D A N / N B S M S M E S U R V E Y
Table 22: Micro-Enterprises’ Awareness of SMEDAN by State

STATE AWARE
ABIA 69,128
AKWA-IBOM 181,164
ANAMBRA 47,980
BAUCHI 229,523
BAYELSA 89,517
BENUE 125,724
CROSS RIVER 150,770
DELTA 253,550
EBONYI 145,078
EDO 72,124
EKITI 52,687
ENUGU 16,587
GOMBE 200,329
IMO 4,660
JIGAWA 209,477
KADUNA 217,092
KANO 612,725
KATSINA 670,939
KEBBI 322,551
KOGI 41,690
KWARA 95,125
LAGOS 273,128
NASARAWA 28,961
NIGER 229,413
OGUN 99,482
ONDO 140,609
OSUN 134,268
OYO 129,160
PLATEAU 102,347
RIVERS 228,844
SOKOTO 267,199
TARABA 15,779
ZAMFARA 247,568
FCT 131,768
Total 5,836,947

36 | S M E D A N / N B S M S M E S U R V E Y
Table 23: Micro-Enterprises’ Benefitted from SMEDAN by State

STATE BENEFITTED
ABIA 7,198
AKWA-IBOM 2,451
ANAMBRA 0
BAUCHI 0
BAYELSA 0
BENUE 0
CROSS RIVER 2,752
DELTA 2,862
EBONYI 2,185
EDO 11,872
EKITI 1,718
ENUGU 0
GOMBE 8,337
IMO 0
JIGAWA 1,455
KADUNA 19,383
KANO 3,406
KATSINA 52,520
KEBBI 29,542
KOGI 1,380
KWARA 4,715
LAGOS 7,970
NASARAWA 748
NIGER 2,270
OGUN 0
ONDO 1,886
OSUN 0
OYO 5,888
PLATEAU 17,441
RIVERS 20,855
SOKOTO 7,074
TARABA 0
ZAMFARA 0
FCT 1,200
Total 217,108

37 | S M E D A N / N B S M S M E S U R V E Y
6 Selected Tables for Small and Medium Enterprises
Table 24: Small and Medium Enterprises by State

STATE MEDIUM
SMALL
ABIA 1,769 40
AKWA-IBOM 898 195
ANAMBRA 1,620 117
BAUCHI 2,039 27
BAYELSA 354 72
BENUE 1,146 22
CROSS RIVER 1,126 168
DELTA 1,444 -
EBONYI 1,206 4
EDO 1,879 118
EKITI 903 126
ENUGU 812 99
GOMBE 1,043 65
IMO 1,259 135
JIGAWA 1,022 75
KADUNA 2,712 170
KANO 7,790 496
KATSINA 1,256 99
KEBBI 898 91
KOGI 827 17
KWARA 164 62
LAGOS 11,044 619
NASARAWA 1,098 22
NIGER 1,258 100
OGUN 1,690 104
ONDO 1,805 194
OSUN 2,247 25
OYO 7,468 519
PLATEAU 2,070 110
RIVERS 2,981 41
SOKOTO 631 210
TARABA 891 69
ZAMFARA 577 16
FCT 2,244 446
Total 68,168 4,670

38 | S M E D A N / N B S M S M E S U R V E Y
Table 25: Comparison of Total Employment by State, 2010 and 2013

2013 2010
STATE
Male Female Total % Male Female Total %

ABIA 28,851 11,062 39,913 2.10 17,575 5,412 22,987 2.15

ADAMAWA 6,045 5,265 11,310 1.06
AKWA-IBOM 11,226 33,069 44,295 2.33 6,838 16,181 23,019 2.16
ANAMBRA 20,570 9,781 30,351 1.59 12,530 4,786 17,316 1.62
BAUCHI 26,460 30,624 57,083 3.00 16,118 14,984 31,102 2.92
BAYELSA 4,451 10,829 15,279 0.80 2,711 5,299 8,010 0.75
BENUE 22,961 466 23,427 1.23 13,987 228 14,215 1.33
BORNO 8,000 11,000 19,000 1.78
CROSS RIVER 12,156 30,973 43,129 2.27 7,405 15,155 22,560 2.11
DELTA 21,013 10,884 31,897 1.68 12,800 5,325 18,125 1.70
EBONYI 24,223 6,000 30,223 1.59 14,756 2,936 17,692 1.66
EDO 36,291 11,877 48,168 2.53 22,107 5,811 27,918 2.62
EKITI 11,935 26,548 38,483 2.02 7,270 12,990 20,260 1.90
ENUGU 12,687 15,603 28,290 1.49 7,729 7,634 15,363 1.44
GOMBE 15,433 8,384 23,817 1.25 9,401 4,102 13,503 1.27
IMO 14,924 26,315 41,239 2.17 9,091 12,876 21,967 2.06
JIGAWA 17,979 9,315 27,294 1.43 10,952 4,558 15,510 1.45
KADUNA 30,645 83,487 114,132 5.99 18,667 30,850 49,517 4.64
KANO 46,941 29,343 76,284 4.01 28,594 14,357 42,952 4.03
KATSINA 23,404 11,993 35,397 1.86 14,257 5,868 20,125 1.89
KEBBI 17,492 3,027 20,520 1.08 10,655 1,481 12,137 1.14
KOGI 11,536 9,432 20,968 1.10 7,027 4,615 11,642 1.09
KWARA 1,572 10,596 12,168 0.64 958 5,185 6,142 0.58
LAGOS 161,017 176,406 337,423 17.72 80,084 80,315 160,399 15.04
NASARAWA 19,219 20,144 39,363 2.07 11,708 9,856 21,564 2.02
NIGER 17,559 1,397 18,956 1.00 10,696 684 11,380 1.07
OGUN 26,725 9,548 36,273 1.91 16,280 4,672 20,952 1.96
ONDO 27,500 20,144 47,644 2.50 16,752 9,856 26,608 2.49
OSUN 39,059 16,534 55,593 2.92 23,793 8,090 31,883 2.99
OYO 147,200 59,501 206,701 10.86 89,668 29,114 118,781 11.13
PLATEAU 33,855 39,822 73,677 3.87 20,623 19,485 40,108 3.76
RIVERS 46,055 43,665 89,720 4.71 28,055 21,365 49,420 4.63
SOKOTO 10,761 20,144 30,905 1.62 6,555 9,856 16,412 1.54
TARABA 14,990 3,493 18,483 0.97 9,131 1,709 10,841 1.02
YOBE 10,000 16,000 16,000 1.50
ZAMFARA 46,565 4,192 50,757 2.67 28,365 2,051 30,416 2.85
FCT 30,645 65,323 95,967 5.04 18,667 20,962 39,630 3.71

Total 1,033,900 869,920 1,903,820 100.00 635,851 430,915 1,066,766 100.00

39 | S M E D A N / N B S M S M E S U R V E Y
Table 26: Total Employment by Sex and Economic Sector

ECONOMIC SECTOR Male Female Total %

MANUFACTURING 179,213 348,505 527,718 27.72
MINNING & QUARRYING 3,500 12,220 15,720 0.83
ACCOMMODATION & FOOD
106,525 55,989 162,514 8.54
SERVICES
AGRICULTURE 21,952 67,326 89,279 4.69
WHOLESALE/RETAIL TRADE 223,100 108,595 331,694 17.42
CONSTRUCTION 6,794 51,319 58,113 3.05
TRANSPORT & STORAGE 12,211 33,267 45,479 2.39
FINANCIAL INTERMIDATION 0 0 0
REAL ESTATE, RENTING,
0 0 0
BUSINESS ACTIVITIES
INFORMATION AND
6,656 12,494 19,150 1.01
COMMUNICATION
EDUCATION 388,981 104,210 493,191 25.91
ADMINISTRATIVE AND SUPPORT
42,567 48,842 91,409 4.8
ACTIVITIES
HEALTH AND SOCIAL WORKS 0 0 0
ARTS, ENTERTAINMENT AND
3,714 2,278 5,992 0.31
RECREATION
OTHERS SERVICES ACTIVITIES 38,322 24,304 62,626 3.29
WATER SUPPLY, SEWERAGE,
WASTE MANAGEMENT AND 365 569 935 0.05
REMEDIATION ACT
TOTAL 1,033,900 869,920 1,903,820 100

Table 27: Form of Ownership

FORM OF OWNERSHIP NUMBER

SOLE PROPRIETORSHIP 53,074

PARTNERSHIP 4,800

PRIVATE LIMITED LIABILITY

COMPANY 10,281
COOPERATIVE 511
FAITH BASED
ORGANISATION 3,361
OTHER 812
Total 72,839

40 | S M E D A N / N B S M S M E S U R V E Y
Table 28: Distribution of Ownership by Sex and Economic Sector

MALE FEMALE Total

BUSINESS SECTOR
Number Percent Number Percent Number

MANUFACTURING 8,089 92.16 688 7.84 8,777

MINNING & QUARRYING 174 85.20 30 14.80 204

ACCOMMODATION & FOOD

SERVICES 4,075 78.62 1,108 21.38 5,183

AGRICULTURE 1,165 93.02 87 6.98 1,253

WHOLESALE/RETAIL TRADE 9,664 88.46 1,261 11.54 10,925

CONSTRUCTION 209 100.00 0 0.00 209

TRANSPORT & STORAGE 460 100.00 0 0.00 460

INFORMATION AND
COMMUNICATION 280 89.07 34 10.93 314

EDUCATION 12,409 61.37 7,811 38.63 20,220

ADMINISTRATIVE AND
SUPPORT ACTIVITIES 2,049 82.32 440 17.68 2,489

ARTS, ENTERTAINMENT
AND RECREATION 200 89.72 23 10.28 223
OTHERS SERVICES
ACTIVITIES 2,204 78.82 592 21.18 2,796
WATER SUPPLY,
SEWERAGE, WASTE
MANAGEMENT AND
REMEDIATION ACT 21 95.24 1 4.76 22

Total 40,998 77.25 12,076 22.75 53,074

Table 29: Distribution of Small and Medium Enterprises by Ownership Status and Economic
Sector

PRIVATE FAITH
SOLE
BUSINESS PARTNER LIMITED COOPERA BASED
SECTOR
PROPRIETORS
SHIP LIABILITY TIVE ORGANI
OTHERS TOTAL
HIP
COMPANY SATION

MANUFACTURING 8,436 870 2,021 88 66 154 11,635

MINNING &
QUARRYING 196 15 36 0 0 0 247
ACCOMMODATION
& FOOD SERVICES 4,982 496 1,774 19 38 49 7,358
AGRICULTURE 1,205 62 163 51 11 11 1,503

41 | S M E D A N / N B S M S M E S U R V E Y
WHOLESALE/RETA
IL TRADE 10,501 1,120 2,941 56 0 164 14,782

CONSTRUCTION 201 20 307 0 0 0 528

TRANSPORT &
STORAGE 442 77 277 18 0 4 818
INFORMATION AND
COMMUNICATION 301 34 100 1 7 10 453
EDUCATION 19,436 1,509 1,305 214 3,070 286 25,820
ADMINISTRATIVE
AND SUPPORT
ACTIVITIES 2,392 195 398 0 17 25 3,027
ARTS,
ENTERTAINMENT
AND RECREATION 214 5 29 1 0 14 263
OTHERS
SERVICES
ACTIVITIES 2,687 211 527 42 21 63 3,551
WATER SUPPLY,
SEWERAGE,
WASTE
MANAGEMENT
AND REMEDIATION
ACT 21 0 4 0 0 0 25
TOTAL 51,014 4,614 9,882 490 3,230 780 70,010

42 | S M E D A N / N B S M S M E S U R V E Y
Table 30: Distribution of Small and Medium Enterprises by Economic Sector

SMALL MEDIUM
ECONOMIC SECTOR

MANUFACTURING 13,442 548

MINNING & QUARRYING 218 33

ACCOMMODATION & FOOD

SERVICES 7,130 161

AGRICULTURE 1,424 152

WHOLESALE/RETAIL TRADE 15,248 258

CONSTRUCTION 500 67

TRANSPORT & STORAGE 820 40

INFORMATION AND
COMMUNICATION 448 31

EDUCATION 22,141 2,867

ADMINISTRATIVE AND SUPPORT

ACTIVITIES 2,956 103

ARTS, ENTERTAINMENT AND

RECREATION 251 16

OTHERS SERVICES ACTIVITIES 2,793 64

WATER SUPPLY, SEWERAGE,

WASTE MANAGEMENT AND
REMEDIATION ACT 24 1
Total 67,396 4,341

43 | S M E D A N / N B S M S M E S U R V E Y
Table 31: Distribution of Enterprises by Start-up Capital

INITIAL START-UP CAPITAL NUMBER OF

(₦'Million) ENTERPRISES

Below 10 57,329
10 - 20 4,287
21 - 30 654
31 - 40 271
41 - 50 390
Above 50 1,577
Total 64,508

Table 32: Distribution of Enterprises by Source of Capital

SOURCE OF CAPITAL NUMBER

PERSONAL SAVING 47,664
LOAN 13,031
FAMILY SOURCE 8,759
COOPERATIVE/ESUSU 2,762
GRANTS 1,282
OTHERS 3,122
Total 80,312

Table 33: Average Monthly Sales Turnover by Economic Sector

ECONOMIC SECTOR 2012 2013

MANUFACTURING 5,775,607 7,612,399
MINNING & QUARRYING 4,224,549 4,949,013
ACCOMMODATION & FOOD SERVICES 5,304,885 3,016,532
AGRICULTURE 111,820,382 125,801,443
WHOLESALE/RETAIL TRADE 9,258,141 10,406,487
CONSTRUCTION 25,334,497 29,408,581
TRANSPORT & STORAGE 10,168,860 13,652,849
INFORMATION AND COMMUNICATION 10,363,839 9,450,967
EDUCATION 1,899,120 2,243,500
ADMINISTRATIVE AND SUPPORT ACTIVITIES 2,546,730 10,345,168
ARTS, ENTERTAINMENT AND RECREATION 4,835,960 5,788,754
OTHERS SERVICES ACTIVITIES 1,238,283 2,265,854
WATER SUPPLY, SEWERAGE, WASTE MANAGEMENT AND
REMEDIATION ACT 2,033,180 2,282,024
TOTAL 194,806,045 227,225,584

44 | S M E D A N / N B S M S M E S U R V E Y
Table 34: Business Insurance by Economic Sector

BUSINESS SECTOR INSURED NOT INSURED

MANUFACTURING 3,440 7,336
MINNING & QUARRYING 79 162
ACCOMMODATION & FOOD
SERVICES 3,774 3,584
AGRICULTURE 276 1,205
WHOLESALE/RETAIL TRADE 5,999 8,711
CONSTRUCTION 195 324
TRANSPORT & STORAGE 473 341
INFORMATION AND
COMMUNICATION 120 326
EDUCATION 7,700 17,559
ADMINISTRATIVE AND SUPPORT
ACTIVITIES 610 2,400
ARTS, ENTERTAINMENT AND
RECREATION 52 211
OTHERS SERVICES ACTIVITIES 1,107 2,402
WATER SUPPLY, SEWERAGE,
WASTE MANAGEMENT AND
REMEDIATION ACT 8 17
TOTAL 23,833 44,578

45 | S M E D A N / N B S M S M E S U R V E Y
Table 35: Distribution of Enterprises by Daily Usage of Alternative Source of Power and
Economic Sector

6 - 10 16 - 20 Above 20
ECONOMIC SECTOR
1 - 5 Hours Hours 11 - 15 Hours Hours Hours

MANUFACTURING 4,063 3,577 1,485 760 714

MINNING & QUARRYING 58 108 36 34 5
ACCOMMODATION & FOOD
SERVICES 1,757 2,125 1,507 1,045 848
AGRICULTURE 681 372 242 45 101
WHOLESALE/RETAIL TRADE 7,105 3,580 1,926 598 1,284
CONSTRUCTION 209 183 41 48 28
TRANSPORT & STORAGE 405 136 136 41 55

INFORMATION AND
COMMUNICATION 157 143 72 36 38

EDUCATION 14,365 6,998 1,458 1,040 1,183

ADMINISTRATIVE AND
SUPPORT ACTIVITIES 1,437 938 321 93 186
ARTS, ENTERTAINMENT AND
RECREATION 121 77 29 7 27
OTHERS SERVICES
ACTIVITIES 1,486 1,148 274 243 211

WATER SUPPLY, SEWERAGE,

WASTE MANAGEMENT AND
REMEDIATION ACT 9 4 3 4 2

TOTAL 31,853 19,389 7,530 3,994 4,682

46 | S M E D A N / N B S M S M E S U R V E Y
Table 36: Small and Medium Enterprises' Employees' Level of Education

Small and Medium Enterprises' Employees'

Level of Education
2% 1%
1% 1% 1%

12% NO EDUCATION
17% PRIMARY
JUNIOR SECONDARY SCHOOL (JSS)
SENIOR SECONDARY SCHOOL (SSS)
2%
VOCATIONAL/COMMERCIAL
NCE/OND/NURSING
12% B.A/B.SC/B.ED/HND
M.SC/M.A/M.ADIN
DOCTORATE
51%
OTHERS

47 | S M E D A N / N B S M S M E S U R V E Y
Table 37: Small and Medium Enterprises' Skills Gap by Economic Sector

QUALIFIED ARTISANS
QUALIFIED ARTISANS
ECONOMIC SECTOR NOT READILY
READILY AVAILABLE
AVAILABLE
MANUFACTURING 8,386 2,389
MINNING & QUARRYING 198 48
ACCOMMODATION & FOOD SERVICES 5,495 1,864
AGRICULTURE 997 501
WHOLESALE/RETAIL TRADE 9,235 5,512
CONSTRUCTION 470 48
TRANSPORT & STORAGE 605 196
INFORMATION AND COMMUNICATION 362 86
EDUCATION 18,904 6,559
ADMINISTRATIVE AND SUPPORT 2,215 812
ACTIVITIES
ARTS, ENTERTAINMENT AND 178 85
RECREATION
OTHERS SERVICES ACTIVITIES 2,613 875
WATER SUPPLY, SEWERAGE, WASTE 10 15
MANAGEMENT AND REMEDIATION ACT
TOTAL 49,668 18,990

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Table 38 MSMEs Contribution to National GDP, 2013

ACTIVITY SECTOR MICRO SMALL MEDIUM TOTAL

1 Agriculture 86.53 6.53 3.95 97.01

2 Mining and Quarrying 0.28 0.39 3.60 4.27
3 Manufacturing 14.28 21.27 19.98 55.53
4 Water supply, sewage, 25.44 6.63 2.51 34.57
Waste management and
Remediation
5 Construction 0.52 2.02 7.68 10.22
6 Trade 36.34 14.39 8.68 59.41
7 Accommodation and Food 4.23 27.98 13.68 45.90
Services
8 Transportation and 50.73 5.60 12.03 68.36
Storage
9 Information and 0.00 2.38 9.57 11.95
Communication
10 Arts, Entertainment and 47.35 28.20 22.26 97.82
Recreation
11 Finance and Insurance 1.05 1.39 3.69 6.13
12 Real Estate 31.00 13.25 11.29 55.55
13 Profession, Scientific and 13.25 2.08 5.28 20.61
Technical Services
14 Administrative & Support 8.55 15.20 65.76 89.51
Services
15 Education 2.09 14.69 24.48 41.26
16 Human health and social 18.24 20.06 20.96 59.25
Services
17 Other Services 80.76 17.01 2.23 100.00

49 | S M E D A N / N B S M S M E S U R V E Y