CONCEPTUAL CASE FOR A NATIONAL MSME INNOVATION SYSTEM FOR NIGERIA

Micro, Small and Medium Enterprises account for over 90% of businesses and 48% of Nigeria’s GDP, yet their innovation capacity remains fragmented and underutilized (Small and Medium Enterprises Development Agency of Nigeria [SMEDAN] & National Bureau of Statistics [NBS], 2021). This study argues for a National MSME Innovation System [NMSIS] to coordinate policy, finance, skills, and technology adoption across federal, state, and local levels. Drawing on innovation systems theory and secondary data from Nigeria’s MSME ecosystem, the study identifies structural gaps in technology access, finance, and knowledge diffusion. It proposes a framework where government, academia, industry, and development partners function as interconnected nodes to support MSME innovation. A coordinated NMSIS could improve productivity, reduce failure rates, and position Nigerian MSMEs for competitiveness under the African Continental Free Trade Area (AfCFTA). [MSMEs]