Governments nationwide have been encouraged to exempt small-scale businesses and industries from taxes as a strategy to boost national productivity and create jobs.

Addressing the 21st National Productivity Day and Award Ceremony organised by the National Productivity Centre (NPC) in Ilorin on Thursday, Professor Raji Abdulgafar Bello, an economist at the University of Ilorin, emphasised the critical role small-scale enterprises play in driving employment and economic growth.

At the program, themed “National Productivity Movement: An Imperative for Economic Recovery, Sustainable Growth, and Development,” the guest lecturer stated, “If the government provides tax relief for them, employers will be more likely to hire, and discipline will follow. Overall productivity will increase.”

“It’s easier to establish a small-scale business under favorable conditions,” he added. “The government’s role should be to adjust the tax. At this lower level, taxes should be waived. If tax relief is provided, expansion becomes feasible, and the informal sector will grow. The private sector is currently the largest employer of labor. To enable small businesses to flourish, we must create an environment that supports them. Private-sector discipline surpasses that of the public sector, so productivity will certainly rise as small businesses and industries grow.”

Professor Bello, noting Nigeria’s abundant resources, lamented the challenges in effectively utilizing these assets.

“Harnessing resources requires human capital development. The government bears some responsibility, as do the citizens. Our education system often emphasizes theoretical knowledge over practical skills. What happened to our technical schools? There’s a lack of continuity between lower and higher education levels. The 6-3-3-4 system has not achieved its goals.”

“Ordinarily, when a student completes the first three years of this system, it should help identify whether their strength is academic or vocational. Those with academic potential should proceed to university, while those with technical aptitudes would benefit from universities of technology. Unfortunately, today, these institutions offer unrelated courses like Law and Business Administration, deviating from their primary purpose. Our education has become more about acquiring certificates, with parents equally fixated on them.”

“But I believe that whatever one does, they should strive to excel. That’s what Nigeria needs. Encouragement is essential, and labor should remain open to continuous training. We don’t need to retain employees who lack functionality.”

Also speaking, NPC state director/coordinator Adegoke Babatunde emphasized that the gap between developed nations and the Third World lies in productivity and innovation levels.

The NPC head affirmed the organization’s commitment to promoting productivity, adding, “The productivity challenge relates to how we can, given the current state of the economy and our people’s needs, produce more goods and services as efficiently as possible.”

He encouraged every Nigerian to contribute their share to the nation’s development.

The event was attended by market leaders, heads of MDAs, academics, security agency members, federal agencies, corps members, and other dignitaries.