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SME (Small and Medium Scale Enterprise) in Nigeria

SME (Small and Medium Scale Enterprise) in Nigeria

There is currently no clear cut definition of who an SME is in Nigeria, however, according to the CBN in their N200b credit guarantee scheme defined SME’sas follows;

Definition of Small and Medium Scale Enterprises

For the purpose of this Scheme, a Small and Medium Scale Enterprise (SME) is an enterprise that has asset base (excluding land) of between N5million –N500 million and labour force of between 11 and 300.

Another broader definition that can be found in the archives of the CBN (2005) defines it as follows;

  • Micro/Cottage Industry
    An industry with a labour size of not more than 10 workers, or total cost of not more than N1.50 million, including working capital but excluding cost of land.
  • Small-Scale Industry
    An industry with a labour size of 11-100 workers or a total cost of not more thanN50 million, including working capital but excluding cost of land.
  • Medium Scale Industry:
    An industry with a labour size of between 101-300 workers or a total cost of over N50 million but not more than N200 million, including working capital but excluding cost of land.
  • Large Scale
    An industry with a labour size of over 300 workers or a total cost of over N200 million, including working capital but excluding cost of land.