Achieving inclusive economic growth and development in Nigeria through MSMEs


  • Ezekiel Oseni
  • Elizabeth Funmi Oseni



Economic growth, inclusive growth, manufacturing, mining, financial system.


The Nigerian economy has witnessed consistent average annual growth rate of 7.4% in the last few years, however, the impact of the growth on the citizenry remains insignificant while poverty, youth restlessness, kidnapping for ransoms, terrorism and other vices are on the rise. The objective of the study was to examine why the impact of the economic growth over the years has remained insignificant and what interventions are required to change the tide. The study discovered that the oil sector which is not labour intensive accounts for over eighty (80) percent of Government revenue and a major contributor to the nation GDP. The study also discovered that the poverty level and unemployment rate among the populace require urgent and drastic measures. The impactful measures will require creation of enabling environment, provision of relevant infrastructure and adequate funding programmes that can be easily accessed. The financial system like in any other economy is essential to attaining inclusive economic growth in Nigeria and it should be more supportive to the economy by abolishing existing lending conditions that make it impractically impossible for many MSMEs which are the engine of economic development to access funds. 


Abata, M. A; Kehinde, J. S. and Bolarinwa, S. A. Fiscal/monetary policy and economic growth in Nigeria: A Theoretical Exploration”. International Journal of Academic Research in Economics and Management Sciences, Sept. 2012, Vol. 1 (5): 75 – 88.

Acemoglu, D. and Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. Barnes & Noble.

Adekunle, O.A; Salami, G. O. and Adedipe, A.O. (2013). Impact of financial sector development on the Nigerian economic growth. American Journal of Business and Management, Vol. 2 (4): 347 - 356

AfDB (2014). Malawi Economic Outlook.

Africa Economic Outlook (2012). Nigeria.

Bategeka, L. N. (2012) The Role of the State in Economic Development: Employment Challenges in Uganda.

Beck, T. (2011). The role of finance in economic development: benefits, risks, and politics. European Banking Centre (EBC), Discussion Paper.,

Bergh, J. C. J. M. (2009). The GDP paradox. Journal of Economic Psychology, 30: 117 – 135,

CBN (2012). National Financial Inclusion Strategy Summary Report –Roland Berger, January: 1- 117

Chan, W.W. and Lam, J. C. (2000) The lodging industry’s contribution to Hong Kong’s gross domestic product, International Journal of Contemporary Hospitality Management, Vol. 12 (2): 86 – 98,

Claymone, Y. (2011). A study on one village one product project (OVOP) in Japan and Thailand as an alternative of community development in Indonesia: A perspective on Japan and Thailand. The International Journal of East Asian Studies 01: 1 – 9.

Diener, E. and Seligman, M. (2004). Beyond money: Toward an economy of well-being. Psychological Science in the Public Interest 5 (1): 1-31,

Fadare, S.O. (2010). Recent banking sector reforms and economic growth in Nigeria. Middle Eastern Finance and Economics. 8: 1450-2889

Forgeard, M. J. C., Jayawickreme, E., Kern, M. L., & Seligman, M. E. P. (2011). Doing the right thing: Measuring wellbeing for public policy. International Journal of Wellbeing, 1, 79-106

Jacob, M. C (1997). Scientific Culture and the Making of the Industrial West. New York: Oxford University Press

Kaur, H. (2013). Agriculture: The way to inclusive growth. IOSR Journal of Business and Management (IOSR-JBM) Vol.9 (6): 42-47

Khosravi, A. and Karimi, M. S. (2010). To investigate the relationship between monetary policy, fiscal policy and economic growth in Iran: Autoregressive distributed lag approach to cointegration. American Journal of Applied Sciences, 7(3), 420 - 424.

Kosmidou, K. (2008). The determinants of banks’ profits in Greece during the period of EU financial integration. Managerial Finance, 146-159

Kumah, F. Y. and Sandy, M. (2013). In search of inclusive growth: The role of economic institutions and policy. Modern Economy, 4(11): 758-775,

Levine, L., (2013). Economic growth and the unemployment rate. Congressional Research Service.

Maina, Z. cited Agabus Pwanagba (2013) 70% of Nigerian women are living below poverty line – Minister. Daily Post Newspapers, July 13, 2013.

McKinley, T. (2010). Inclusive growth criteria and indicators: An inclusive growth index for diagnosis of country progress. ADB Sustainable Development Working Paper Series, No. 14. Manila, Asian Development Bank.

Naqvi, S. N. H. (2012). The idea of inclusive growth and development policy, The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(1): 1-21

National Bureau of Statistics (2014)

Obansanjo, O. (2004). National Planning Commission. National Economic Empowerment and Development Strategy (NEEDS).

OECD (April 2014), Better policies Series, JAPAN Advancing the third arrow for a resilient economy and inclusive growth.

Oita OVOP International Exchange Promotion Committee (2010-2013),

Olofin, S. and Afangideh, U.J (2008). Financial structure and economic growth in Nigeria. Nigerian Journal of Securities and Finance Vol. 13 (1): 47-68

Oloni, E. F. (2013). The impact of economic growth on employment in Nigeria. International Business and Management, Vol. 6 (1): 113-119

Ranieri, R and Ramos, R. A (2013). After all, What is inclusive growth? International Policy Centre for Inclusive Growth, No. 188, March.

Rayne, S. (2014).Zero carbon equals economic catastrophe.

Shariff, A. M. (2010) Towards a sustainable socio-economic development: Is there a need for a socially inclusive financial system?. Paper presented at the CBA 4th International Conference on Global Economic Crisisfrom Islamic Economic Perspectives. Organised by Kuwait University, Kuwait, 15-16 December.

Shin, Y. (2013). Financial Markets: An Engine for Economic Growth. The Regional Economis, July. Federal Reserve Bank of St. Louis.

Singh S and Janor H (2013) Determinants of SMEs Financing Pattern in India-A Rotated Factor Analysis Approach, Int. Journal of Economics and Management 7(2): 314 – 334

Sodipe, O. A. and Ogunrinola, O. I. (2011). Employment and economic growth nexus in Nigeria. International Journal of Business and Social Science Vol. 2(11): 232 – 239

Thu, N. T. A. (2013). One village one product (OVOP) in Japan to one tambon one product (OTOP) in Thailand: Lessons for grass root development in developing countries. Journal of Social and Development Sciences, Vol. 4 (12): 529 – 537

Ucha, C. (2010). Poverty in Nigeria: Some dimensions and contributing factors. Global Majority E-Journal, 1 (1): 46-56.

Ugwuanyi, C. (2012). Towards harnessing Nigeria’s vast solid mineral potentials. Sweet Crude Reports – A Review of The Nigerian Energy Industry,

Umaru, A; Donga, M; Gambo, E. J. and Yakubu, K.M (2013). Relationship between crime level, unemployment, poverty, corruption and inflation in Nigeria. Global Advanced Research Journal of Management and Business Studies (GARJMBS) August, Vol. 2(8): 411-422

UNIDO, Research and Statistics Branch Working Paper (03/2008), The One-Village-One-Product (OVOP) Movement: What it is, How it has been replicated, and recommendations for a UNIDO OVOP-type project

World Bank (2007). Policy research report: Access for all? Policies and pitfalls in expanding access.,,contentMDK:23027690~menuPK:574960~pagePK:64165401~piPK:64165026~theSitePK:469382~isCURL:Y~isCURL:Y,00.html

World Bank (2008). World bank development indicators.

Wu, X, and Li, J. (2013). "Economic growth, income inequality and subjective well-being: Evidence from China." PSC Research Report No. 13-796. July,

Yogo, T. (2008). Growth and employment in sub Saharan Africa: Theoretical evidence and empirical facts. Munich Personal RePEc Archive, Paper No 10474,