Shettima Calls for Financial Sector Support as Government Deepens MSME, Youth Investment
Vice President Kashim Shettima has challenged financial institutions and private sector actors to expand support for micro, small, and medium enterprises while the federal government rolls out targeted youth development programmes, including free examination registration for 10,000 students in the southeast.
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Vice President Kashim Shettima has issued a direct challenge to Nigeria's financial sector, calling for expanded support mechanisms for micro, small, and medium enterprises as the federal government intensifies its push to create employment pathways and economic opportunities across multiple fronts.
Speaking to stakeholders that included financial institutions, government agencies, and private sector representatives, Shettima emphasised the need for stronger financing structures and accelerated technology adoption to unlock the potential of MSMEs, which form the backbone of Nigeria's economy. According to The Nation Newspaper, the Vice President specifically urged partners to "widen support for MSMEs" and "harness digital, agriculture potential" as part of the administration's broader job creation strategy.
The call comes as the government targets the establishment of shared business hubs nationwide, designed to provide MSMEs with access to infrastructure, technology, and support services that individual operators would struggle to afford independently. Shettima's remarks reflect growing recognition within government that traditional financing models have failed to adequately serve the MSME sector, which employs an estimated 80 percent of Nigeria's workforce yet remains chronically undercapitalised.
Agriculture and Digital Economy at the Centre
The Vice President's focus on agriculture alongside digital technology signals a strategic alignment between two sectors the government views as critical to economic transformation. Agriculture remains Nigeria's largest employer, yet productivity lags far behind potential due to limited access to modern inputs, finance, and technology. By linking MSME support explicitly to agricultural potential, the administration appears to be positioning smallholder farmers and agro-processors as priority beneficiaries of expanded financing.
"The federal government targets more jobs, shared hubs nationwide," The Nation Newspaper reported, outlining the administration's intention to create physical and digital infrastructure that can support enterprise development at scale. The shared hub model, if implemented effectively, could address one of the most persistent barriers facing MSMEs: the high cost of business premises and equipment that forces many operators into the informal sector.
Financial institutions have historically viewed MSMEs as high-risk borrowers, citing weak financial records, lack of collateral, and limited business management capacity. Shettima's appeal suggests the government may be preparing incentive structures or risk-sharing mechanisms to encourage banks to expand lending to this segment, though specific policy details were not disclosed in his remarks.
Youth Development Through Education Access
Parallel to the MSME initiative, the federal government has launched a targeted education intervention in the southeast, offering free registration for the Joint Admissions and Matriculation Board examination to 10,000 students in Ebonyi State. According to Legit.ng, the programme forms part of President Bola Tinubu's broader education reform and youth empowerment agenda.
The JAMB registration fee, while modest in absolute terms, represents a significant barrier for families in economically marginalised communities. By removing this cost, the government aims to expand access to tertiary education for students who might otherwise be excluded from the university admission process entirely. Ebonyi State, one of Nigeria's poorest states with limited industrial base and high youth unemployment, represents a strategic choice for the intervention.
The initiative reflects a recognition that youth unemployment, which official statistics place above 40 percent, requires interventions at multiple points along the education-to-employment pipeline. While MSME support addresses the demand side of the labour market by creating enterprise opportunities, education access programmes target the supply side by ensuring young Nigerians can acquire the qualifications needed for formal sector employment or entrepreneurship.
Implementation Challenges Ahead
Both initiatives face substantial implementation challenges. The success of expanded MSME financing depends not only on capital availability but on the development of appropriate financial products, business development services, and regulatory frameworks that reduce transaction costs for lenders while protecting borrowers from predatory practices. Previous government programmes aimed at MSME support have often failed due to poor targeting, political interference in loan allocation, and weak monitoring systems.
Similarly, the education intervention, while addressing an immediate barrier, does not resolve the deeper structural issues facing Nigeria's education sector: inadequate school infrastructure, teacher shortages, and a curriculum misaligned with labour market needs. The 10,000 beneficiaries in Ebonyi State represent a fraction of the national cohort of examination candidates, raising questions about scalability and equity across regions.
The government's dual focus on enterprise development and human capital formation does, however, suggest a more integrated approach to economic policy than previous administrations have demonstrated. Whether financial institutions and private sector actors will respond to Shettima's call with the scale of investment required remains an open question, one that will likely be answered in the coming quarters as policy details emerge and implementation begins in earnest.