Government Intervention on the Performance of Small and Medium-Scale Enterprises (SMEs) Sector in Nigeria

Abstract

Purpose: The study appraises efforts of the government towards the private sector development issues as well as what the government has done to help and sustain private sector development in Nigeria. Background: The development of the private sector, especially small and medium-scale enterprises (SMEs), in any nation is crucial for the economic growth and socio-economic development of such a nation. For the private sector to function well, the government must play a major role by providing protection and creating an atmosphere conducive to the private sector to operate. The work examined the role of the government in private sector development in Nigeria. Methods Adopted: The work adopted both descriptive and survey methods to gather facts for the study. The adoption of the descriptive method was to describe the phenomenon under study as it existed. A total of 312 SMEs that were functional and had not less than 3 workers constituted a sample frame for this work. The information was derived from the list of all registered SMES operating in Akwa Ibom State and was provided by Ministry of Trade and Investment, Uyo. Key Findings: It was observed that the Nigerian government has failed to use its police power effectively to abate the challenges facing the sector and enhance its development. It is the view of this work that the private sector is likely to show greater success when there is a genuine commitment on the part of the government to regulate and monitor the activities of the sector. On the whole, both historical and explorative methods were used in comprehending the phenomena under discourse. Conclusion and Implications: It is recommended, among others, that for government efforts towards private sector development to create the necessary impact, the government needs to use its power to provide productive opportunities for citizens to invest.