THE ROLE OF THE LAW IN INDUSTRALIZATION: THE CASE OF THE LEGAL FRAMEWORK FOR SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN NIGERIA

Abstract

This paper appraises the legal framework for the regulation of small and medium scale enterprises (SMEs) in Africa with particular reference to Nigeria. The paper examines the legal environment for the operation of SMEs in Africa by appraising the laws enacted for the promotion of SMEs in Nigeria. The paper further examines the laws in order to discover whether they adequately provide for the extant needs of SMEs in Africa in the areas of technology acquisition, access to micro-credit, infrastructure, energy-supply and access to the market for finished products. The paper finds that the laws providing for the needs of SMEs are scanty and still in their embryonic stages. Apart from this, they do not cover most areas of need of the SMEs. Moreover, the enforcement of available laws is still far from satisfactory in Nigeria. There is a need for adequate legal protection for SMEs in Africa in order to stem the growing unemployment and poverty rates across the continent.