Manufacturing micro, small and medium enterprises and gross domestic product in Nigeria

Abstract

Gross Domestic product (GDP) is a very sensitive macroeconomic variable essential for economic growth and development of any country. Micro Small and Medium Enterprises (MSMEs) are engine of growth and development of every economy. This brought about an interwoven relationship between the two variables in fostering the economic growth. This study is an ex-post facto study that examined the contribution by manufacturing MSMEs on the GDP of Nigeria. the study is an exploratory and descriptive approach quantitative data gathered through secondary sources. The study outcome revealed that government expenditure on MSMEs is not significant but positively contribute to the GDP value. The study recommends a collaborative effort between Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and Central Bank of Nigeria (CBN) to encourage government policy that will enhance government expenditure on MSMEs for sustainable economic growth and development.