SMEDAN Secures N1bn Matching Fund With Katsina State Government To Boost SMEs

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), under the leadership of Charles Odii, has successfully secured a N1bn funding agreement for small businesses in Katsina state.

The matching funding pact with the state, kicking off this quarter with an initial injection of N250m, was signed on Thursday, at the agency’s headquarters in Abuja during the visit of Katsina State Governor, Dr Dikko Umaru Radda.

The funds disbursed will be available to SMEs as single-digit interest loans, addressing the problem of expensive access to capital and expansion funds.

Additionally, a Memorandum of Understanding (MoU) was signed between the agency and the state government to overhaul the Industrial Development Center (IDC) in Katsina state.

The goal is to transform the IDC into an impactful incubator, providing SMEs with discounted access to modern tools and essential infrastructure, including power, thereby enhancing local production quality and reducing operational costs.

Speaking at the event, Odii said, “The potential of SMEs in Nigeria to drive lasting growth and prosperity is undeniable. The evidence of their resilience and innovative brilliance is all around us.

“Government support remains crucial for success as our mission at SMEDAN is to create an enabling ecosystem for SMEs to thrive, offering ready access to finance, streamlined market entry, and regulatory support.”

Governor Dikko Radda highlighted the importance of SMEs to national growth.

He emphasized the efforts of the Katsina State SME development agency and stressed the necessity of collaboration with SMEDAN to harness the contributions of SMEs in job creation and economic revitalization.

In a related development, SMEDAN flagged off its flagship initiative, ‘One Local Government One Product’, designed to empower local cooperatives to stimulate production by supporting businesses leveraging the unique resource advantages of each local government.

Selected cooperatives in the agribusiness value chain were awarded funds, 70 per cent of which are repayable loans, as part of the initiative’s rollout of the year.

Odii encouraged the prudent use of funds and prompt repayment, citing the potential of OLOP to address Nigeria’s food inflation challenge and boost export efforts.