As President Bola Tinubu’s administration intensifies efforts to reposition Nigeria’s economy, the ambitious $1 trillion GDP target stands as a bold vision aimed at transforming the country into one of the largest and most competitive economies in Africa. Achieving this target requires more than fiscal reforms and macroeconomic adjustments — it demands unleashing the full potential of entrepreneurship across all sectors of the economy.

Entrepreneurship has long played a vital role in Nigeria’s economic ecosystem. With over 39 million micro, small, and medium-sized enterprises (MSMEs) contributing about 48 per cent to the Gross Domestic Product and accounting for more than 84 per cent of total employment, according to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the entrepreneurial sector holds the key to inclusive growth, job creation, and poverty reduction.

In a country with vast human capital and abundant natural resources, entrepreneurship provides a powerful means of economic diversification. For too long, Nigeria’s economy has relied heavily on oil exports, leaving it vulnerable to external shocks and fluctuations in global energy prices. As global energy trends shift towards renewable alternatives, Nigeria must find new engines of growth. Entrepreneurs — with their agility, innovation, and problem-solving capabilities — offer the best route to building a more resilient and diversified economy.

READ ALSO: Delta most peaceful state for oil, gas business in Nigeria –Gov’s Aide

Across the country, entrepreneurial ventures are already making significant impacts. In agriculture, agropreneurs are leveraging technology to improve yields, reduce post-harvest losses, and add value to farm produce through processing and packaging. This not only boosts food security but also reduces Nigeria’s dependency on imported food items. In the technology space, Nigerian startups in fintech, healthtech, and edtech are attracting global investors and redefining service delivery in sectors long dominated by inefficiencies.

For example, fintech companies such as Flutterwave and Paystack have opened global conversations about the innovation potential of Nigerian entrepreneurs. Their success stories are not just victories for the private sector — they represent models that can inspire thousands of young Nigerians to build solutions that solve real problems. These companies also contribute to foreign direct investment inflows and generate jobs, both directly and through their value chains.

However, the journey toward transforming entrepreneurship into a $1 trillion economic driver is not without its obstacles. Access to finance remains one of the biggest challenges for startups and MSMEs. Many entrepreneurs struggle to secure capital from commercial banks due to stringent collateral requirements, high interest rates, and a lack of tailored financial products. While intervention schemes such as those offered by the Bank of Industry (BOI), Central Bank of Nigeria (CBN), and other development finance institutions exist, bureaucratic bottlenecks and limited awareness hinder access for many.

Beyond finance, the country’s infrastructure deficit presents a formidable barrier. Inadequate power supply, poor transportation networks, and limited access to broadband internet significantly increase the cost of doing business. Entrepreneurs often have to provide their own electricity through generators, spend heavily on logistics, and grapple with inconsistent digital connectivity. These costs reduce competitiveness and profitability, making it difficult for businesses to scale.

Regulatory frameworks also play a significant role in determining how well entrepreneurship can thrive. Cumbersome business registration processes, multiple taxation, and inconsistent policy implementation deter investment and discourage innovation. To position Nigeria as a globally competitive entrepreneurial hub, the government must create an enabling environment where businesses can operate with certainty and confidence.

President Tinubu’s reform agenda offers opportunities to realign economic priorities with entrepreneurial needs. His administration’s efforts to unify the foreign exchange market, remove fuel subsidies, and enhance fiscal discipline are designed to restore investor confidence and encourage private sector participation. Although these reforms have brought initial economic discomfort, especially with rising inflation and reduced purchasing power, they lay the groundwork for a more efficient and market-driven economy in the long term.

However, economic reforms must be supported by robust social investment programmes that shield vulnerable entrepreneurs from external shocks. Access to targeted grants, low-interest loans, and business development support services will be critical in helping startups survive and grow in the new economic climate. In addition, mentorship and capacity-building initiatives can equip young entrepreneurs with the skills and networks needed to scale their ventures sustainably.

Youth empowerment through entrepreneurship remains a critical pillar of economic growth. With more than 60 per cent of Nigeria’s population under the age of 30, harnessing the demographic dividend is essential. Programmes such as the Nigeria Youth Investment Fund (NYIF), the Tertiary Institutions Entrepreneurship Scheme (TIES), and National Development Plans for youth-led enterprises must be expanded and strategically aligned with current industry trends to have lasting impact.

Another underutilised resource is Nigeria’s vibrant diaspora community. Nigerian entrepreneurs abroad are thriving in industries ranging from healthcare and education to entertainment and finance. With the right incentives and platforms, these diasporans can play a critical role in transferring knowledge, investing in local startups, and bridging gaps in innovation. The government must explore policies that foster cross-border collaborations and enable diaspora-led investments in local enterprises.

Moreover, digital technology is redefining the landscape for entrepreneurs. From e-commerce platforms to mobile banking and digital marketing, technology has lowered barriers to entry and allowed small businesses to reach wider audiences. Government efforts to enhance digital infrastructure, reduce data costs, and promote digital literacy will further empower entrepreneurs to compete globally and contribute significantly to GDP growth.

As Nigeria charts its path toward a $1 trillion economy, it must prioritise the growth of a vibrant and inclusive entrepreneurial ecosystem. This means investing in infrastructure, simplifying regulations, improving access to finance, and building skills among the youth. It also means embracing innovation, encouraging private sector partnerships, and ensuring that reforms are people-centred and result-oriented.

In the final analysis, entrepreneurship is more than a component of the economy — it is the lifeblood of sustainable development. It represents the creativity, resilience, and ambition of Nigerians who continue to build businesses despite challenging environments. By positioning entrepreneurship at the heart of its economic strategy, the Tinubu administration can unlock a new era of prosperity, create millions of jobs, and lift millions more out of poverty.

In Tinubu’s quest to achieve a $1 trillion economy, the entrepreneurial sector is not just a contributor — it is the foundation. With sustained commitment, strategic partnerships, and inclusive policy frameworks, Nigeria can harness the power of entrepreneurship to build an economy that is resilient, diversified, and future-ready.