An overview of Legal and Regulatory Framework for Micro, Small and Medium Enterprises in Nigeria

Abstract

Nigeria's Micro Small and Medium Enterprises (MSMEs) have contributed to economic development and provided job opportunities to millions of people and lifted them out of poverty. To ensure their continued survival, success, and growth in the modern economy, various countries including Nigeria have established both institutional frameworks and laws to regulate the subsector. This study examined the existing current level of support provided by the appropriate legal and regulatory frameworks controlling the establishment and operation of MSMEs and made suggestions for ways to improve their efficiency in Nigeria. This study found that the laws and regulatory institutions have played vital roles in the success of MSMEs, particularly in the area of practice, operations and control. The paper also outlined the weaknesses of both the legal and institutional regimes in offering MSMEs in Nigeria the necessary assistance and a favourable business environment. The study, therefore, concludes that if MSMEs are to thrive and flourish, the existing legal and regulatory mechanisms need to be reformed to catch up with acceptable global standards.