How IP Can Increase SMEs’ Contribution to Nigeria’s Economy
Over 90 percent of businesses in Nigeria are small and medium-scale enterprises (SMEs). These businesses contribute approximately 48 percent of Nigeria’s gross domestic product and 84 percent of national employment. In 2025, Nigeria declares that a $1 trillion economy is achievable by 2030 through these SMEs. However, this ambition will remain far from reality if the intellectual property (IP) rights issues facing SMEs are not addressed. These IP issues include imitation, theft, and commercial exploitation. For Nigeria to fully maximize the economic potential of SMEs, IP education must be a top priority. Also, a centralized and stricter enforcement agency must be instituted.
Many Nigerian SMEs mostly focus on profit-making, while neglecting what becomes of their financial asset (intellectual property). Unfortunately, some SMEs still suffer from commercial exploitation due to weak enforcement despite protecting their work.
With Nigerian SMEs already battling with limited access to funds, if these problems persist, investment in SMEs would be discouraged, and innovation would decline. The contribution of Nigerian SMEs to Nigeria’s GDP would also reduce.
Intellectual property rights education is non-negotiable for resolving these IP issues. Nigerian entrepreneurs cannot protect what they lack the knowledge of. Also, Nigerian consumers cannot value IP when they are ignorant of its economic importance. Although Nigeria currently has awareness programs for IP, these programs are fragmented and insufficient.
Compared to countries like the United Kingdom, Nigeria has not institutionalized IP literacy into its formal education to increase awareness. The UK has an IP Education Framework designed for primary and secondary schools, as well as universities. This framework provides free resources for students, businesses, business advisors, and lecturers on how to manage or use IP. The framework also provides lesson plans for lecturers, teachers, and tutors, exposing students to the usefulness of IP in their lives and future careers.
IP education should be incorporated into educational institutions, starting with primary schools and entrepreneurship hubs in Nigeria. The Intellectual Property Office (IPO) Nigeria, with other educational and entrepreneurship bodies, should champion this incorporation. The bodies should include the National University Commission and the Small and Medium Enterprises Development Agency of Nigeria.
Additionally, programs that promote IP literacy should be featured in local and national media outlets. These programs should review basic patent and trademark registration guides that entrepreneurs can access. The programs should also discourage Nigerians from patronizing pirated works and break down IP. For instance, Canada has a national podcast (“Canadian IP Voices”) where experts break down IP and discuss the dangers of IP infringement. Since its commencement in 2021, the IP Canada Report 2025 reveals that IP activity has improved massively in the country.
If IP literacy education is institutionalized, the present and future entrepreneurs and consumers would know the value of IP. Educated entrepreneurs would make patent or trademark registration a top priority and plan a sustainable business by negotiating better partnerships.
Another step in the right direction is having an SME-friendly IP enforcement agency instituted in Nigeria. This body would focus mainly on providing swift dispute resolution and enforcing the existing laws on IP matters concerning SMEs.
The United States National Intellectual Property Rights Coordination Center demonstrates the effectiveness of this kind of model. Since its inception in 2000, the center has significantly addressed and combatted IP issues, particularly for SMEs, who are the backbone of the United States’ economy.
The execution of this recommendation in Nigeria requires collaboration. The U.S. National IPR Center is efficient because of its public and private sector partnerships. The body partners with over 30 agencies to protect the innovations of SMEs at home and abroad.
Locally, public and private agencies should partner to fight against counterfeiting and infringement activities in Nigeria. These agencies should include customs services, market regulators, and tech hubs. Internationally, the specialized agency should partner with bodies like the World Intellectual Property Organization to fight digital theft. The agency should also collaborate with the African Regional Intellectual Property Organization.
This model, when implemented, will ensure quicker enforcement operations of IP matters for SMEs. The body will also be a security indicator to international partners and investors, generate permanent economic stability, and protect SMEs’ innovations.
Nigeria’s $1 trillion economic ambition would only be a dream if IP issues are not addressed. If Nigerian SMEs continue to suffer from counterfeiting and piracy, their contributions to Nigeria’s economy will reduce. However, if strong IP education programs and enforcement systems are institutionalized, Nigerian SMEs would flourish and contribute more to Nigeria’s economy.
Article first appeared in The Cable.