Lagos Aims to Boost Annual Foreign Exchange Earnings by $1 Billion Through SME Growth

Empowering SMEs to Drive Economic Expansion

The Lagos State Government has set an ambitious goal to increase its foreign exchange inflows by an additional $1 billion each year within the next five years. This target is anchored on the development and support of Small and Medium Enterprises (SMEs), which are pivotal to the state’s economic diversification strategy. The initiative follows the successful completion of the Lagos State Export Readiness Training Programme (LASERP), which recently graduated 253 entrepreneurs equipped with the skills to expand their businesses internationally.

Graduates Poised to Represent Lagos on Global Platforms

Out of the 253 LASERP graduates, 20 standout participants have been chosen to serve as Lagos’ ambassadors in various international trade forums and export markets. These entrepreneurs are expected to leverage their training to tap into new export opportunities, thereby contributing significantly to the state’s foreign exchange earnings. This move aligns with Lagos’ broader vision to position itself as a leading export hub in Africa.

SMEs: The Backbone of Lagos’ Economic Future

Small and Medium Enterprises constitute a substantial portion of Lagos’ economy, accounting for over 50% of employment and a significant share of the state’s GDP. By enhancing export readiness and providing targeted support, the government aims to unlock the untapped potential of these businesses. Recent data from the Lagos Bureau of Statistics indicates that SMEs contributed approximately 45% of the state’s non-oil export revenue in 2023, underscoring their critical role in economic growth.

Strategic Initiatives to Sustain Growth

Beyond training, the Lagos State Government is implementing complementary measures such as access to finance, market linkages, and infrastructure improvements to ensure SMEs can scale effectively. For instance, the Lagos SME Export Fund, launched in early 2024, offers low-interest loans to exporters, facilitating their expansion into new markets. Additionally, partnerships with international trade organizations are being strengthened to provide continuous mentorship and market intelligence.

Looking Ahead: A Model for Other Nigerian States

Lagos’ proactive approach to SME development and export promotion serves as a blueprint for other Nigerian states aiming to diversify their economies and increase foreign exchange earnings. By fostering a conducive environment for SMEs to thrive, Lagos is not only enhancing its economic resilience but also contributing to Nigeria’s overall trade balance. The success of LASERP and related initiatives highlights the transformative impact of targeted government intervention in the SME sector.

Source: Nairametrics