GOVERNMENT SUPPORT FOR SMALL AND MEDIUM -SIZED BUSINESSES IN THE NIGERIAN FASHION INDUSTRY IN THE CONTEXT OF DIGITAL TRANSFORMATION

Abstract

The fashion industry of the Federal Republic of Nigeria (FRN), with its vibrant creativity and growing demand, represents a compelling subject for economic research, as it holds significant potential for economic diversification and job creation. However, a comprehensive analysis of the fashion industry within the framework of public administration and policy remains underexplored. The purpose of this study is to examine the specifics of state support for small and medium-sized enterprises (SMEs) in the fashion industry of the FRN in the context of digital transformation. The research objectives are to define the specific characteristics of the Nigerian fashion industry as an object of economic analysis and the development of state industrial policy, to clarify the role of SMEs in this industry for the country's economic development in the context of digitalization, to conduct a systemic analysis of SME support measures in the FRN, and to identify key mechanisms of such support specifically applied within the fashion sector. Based on comprehensive content analysis, the study identifies key characteristics of the FRN's fashion sector as an object of economic research and public policy formulation, demonstrates the role of fashion SMEs in national economic development, and analyzes systems and mechanisms of state support for SMEs. The findings indicate that the Nigerian fashion industry demonstrates significant economic performance and is one of the largest employers in the country's non-oil economy, contributing substantially to its diversification. However, fashion SMEs face serious challenges, including limited access to finance, underdeveloped infrastructure, a shortage of skilled labor, and insufficient collaboration between the public and private sectors. Specific characteristics of the fashion industry that create unique challenges for public policy development are identified, namely: the uniqueness of market entry barriers for SMEs, the absence of seasonality as a strategic constraint, internal contradictions of the "fast fashion" phenomenon, and structural problems of information asymmetry within the industry. Three key mechanisms of state support for the industry in the FRN are identified: financial instruments, non-financial support programs, and a system of tax incentives and regulatory simplification. The analysis shows that while institutional structures have been established in the FRN, gaps in their operational effectiveness persist: only about 10% of fashion SMEs gain access to state credit. It is demonstrated that digital transformation creates unprecedented opportunities for fashion SMEs in the FRN through e-commerce platforms and digital marketing tools, and that targeted state support for this industry enhances its economic contribution to the national diversification program, positioning the country as a competitive player on global fashion markets.