SMEDAN Maps New Path To Unlock Nigeria’s Small Business Potential

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has outlined a comprehensive strategy to unlock the growth potential of Nigeria’s small businesses, placing grants, affordable financing, skills development and stronger governance at the centre of the Federal Government’s MSME agenda.

Director-General of SMEDAN, Mr. Charles Odii, disclosed this during an engagement with small business owners, where he said Nigeria currently has about 39.25 million nano, micro, small and medium enterprises, down from roughly 41 million before COVID-19, when an estimated three million businesses were lost.

Odii said the administration of President Bola Tinubu has prioritised the MSME ecosystem as a key driver of economic growth and job creation, committing nearly N200bn to support businesses across different categories.

According to him, the intervention includes N50bn in grants for nano businesses, N75bn for SMEs, and N25bn for manufacturers, with a strong emphasis on single-digit interest loans and non-repayable grants for the smallest operators.

He explained that nano businesses—those with fewer than three employees and minimal turnover were targeted for grants to provide immediate relief and working capital.

“The idea was to give support that reflects the scale of their operations and does not burden them with repayment,” Odii said.

Beyond federal funding, SMEDAN has partnered with state governments, the Bank of Industry and commercial banks to mobilise additional resources.

Odii said over N12bn in single-digit loans has been secured for small businesses across several states, while Sterling Bank alone earmarked N5bn to support MSMEs nationwide.

To improve access to financing, SMEDAN is promoting cooperative-based lending under the One Local Government, One Product initiative, encouraging small business owners to form clusters that can access funds collectively for tools, workspaces and working capital.

Odii also announced the standardisation of entrepreneurship training through a new curriculum known as ICSS – Inspire, Create, Start and Scale, designed to equip MSMEs with the skills required to qualify for bank funding.

He noted that poor business preparedness has often limited access to credit, despite available funds.

In a move to strengthen governance and accountability, SMEDAN has established a National MSME Council, creating a structured channel for resolving business challenges from the local level up to the Presidency.

Odii urged state governors yet to inaugurate MSME councils to do so to ensure effective grassroots support.

He further revealed that the Federal Government has approved free business registration for 250,000 MSMEs, dismissing concerns that the initiative is aimed at expanding the tax net.

According to Odii, the reforms are designed to make small businesses more resilient, productive and central to Nigeria’s economic recovery, stressing that MSMEs remain the country’s largest source of jobs and inclusive growth.