When we talk about boosting Nigeria’s trade or tourism sectors, one word should sit at the centre of the conversation: SMEs. Small and Medium Enterprises form the backbone of the Nigerian economy, and in tourism alone, they account for over 80% of businesses, according to UN Tourism estimates on emerging markets.
From travel agencies to local tour operators, artisanal producers, hospitality providers, cultural performers, and transport services, SMEs are the lifeblood of our tourism value chain. They create jobs, drive innovation, and showcase the best of Nigerian creativity and hospitality to the world. If Nigeria’s tourism story is to compete globally, it will be written by the small businesses that keep its heartbeat alive.
The Untapped Engine of Trade & Tourism
Nigeria’s trade strategies often focus on large-scale exports or oil revenue. But if we zoom in, we’ll find thousands of export-ready, tourism-linked SMEs who simply lack access to:
- Affordable financing
- Modern packaging, processing, and logistics
- Market entry information and trade readiness support
These gaps stifle our ability to compete not just globally, but even within West Africa.
Tourism SMEs in Focus
A strong tourism economy is built on SMEs that can:
- Design and sell inbound and outbound travel experiences
- Offer unique local accommodation (hotels, guesthouses)
- Export cultural goods (textiles, crafts, cuisine)
- Operate digital platforms for booking and storytelling
Yet many of these businesses remain informal, unsupported, and disconnected from Nigeria’s broader trade agenda. And now, a new challenge is emerging the growing cost of compliance and certification. Over the weekend, I came across a membership circular where operators are expected to pay over ₦420,000 annually, just to formalize registration with one of our tourism agencies. For context, many of these businesses are micro-tourism operators who earn less than that in a month. Professionalization is essential but when regulatory or training costs exceed the revenue of small enterprises, we risk turning progress into punishment.
Nigeria’s Missing Middle
It’s important to acknowledge that the government has introduced programs aimed at SME growth BOI loans, SMEDAN initiatives, and export facilitation hubs through NEPC. However, what remains missing is a targeted recognition of tourism SMEs within these broader trade and investment frameworks. Many tourism entrepreneurs don’t know where to go for support. And many trade policymakers still don’t see tourism as a serious export industry. If these efforts are to succeed, they must be made visible, accessible, and responsive to the realities of the entrepreneurs driving growth on the ground. It’s not a lack of effort it’s a lack of alignment, coordination, and empathy.
What’s Working Globally
- Kenya launched a Tourism SME Accelerator to prepare local companies for global partnerships.
- Indonesia bundled its cultural tourism SMEs into national export promotion programs.
- Rwanda integrated tourism SMEs into its national branding making finance and training accessible with minimal barriers.
Nigeria can do the same. But first, we must ensure our entrepreneurs are not buried under bureaucratic costs disguised as capacity building.
Recommendations
- National Tourism SME Policy: Recognize tourism-linked SMEs as trade actors and create targeted funding and mentorship pipelines.
- SME Trade Awareness Drive: Tailor government programs for travel, hospitality, and creative entrepreneurs.
- Market Access Support: Help SMEs meet global standards and reach diaspora and regional markets.
- Technology & Data: Map and monitor tourism SMEs to guide real-time policymaking.
- Public–Private Collaboration: Encourage banks, fintech, and corporate partners to invest in the tourism SME ecosystem.
Final Word
Nigeria doesn’t need to look far for a global trade advantage it already lives in the hands of thousands of tourism-linked SMEs. But to unlock their potential, we must protect them from bureaucratic barriers that drain rather than develop. With better alignment between trade policies and tourism realities, these businesses can position Nigeria not just as a place people visit but as a hub people invest in. The potential is there. The strategy exists. Now is the time to make it sustainable.
