Nigeria’s small businesses are getting fresh attention as the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) steps up efforts to help Micro, Small, and Medium Enterprises (MSMEs) scale and thrive. With bold partnerships and new digital tools, the agency is redefining how local entrepreneurs access funding, training, and market opportunities.
Earlier this year, SMEDAN teamed up with Sterling Bank to introduce a N5 billion loan fund aimed at business expansion. But so far, only N250 million—or 5 percent—of the total has been accessed. According to the agency’s Director General, the slow disbursement is largely due to inadequate documentation and limited capacity among MSMEs, leaving many unable to meet the loan requirements.
To fix this, SMEDAN has launched a national data bank for MSMEs. Businesses must register to join the platform, allowing the agency to track their growth and provide tailored support. This digital profiling also helps verify credibility, laying the groundwork for smoother fund disbursement in future cycles.
Funding, but With Strings Attached
While the N5 billion fund offers a major boost, SMEDAN is clear that the financial aid is a loan—not a grant—and must be repaid. The agency hopes that by April 2025, more MSMEs will become eligible by improving their record-keeping and administrative capabilities. The funding covers sums between N250,000 and N10 million, but only businesses with solid documentation and financial track records stand a chance.
In a move to tackle this challenge, SMEDAN is expanding its training programmes through business clinics. These clinics are designed to sharpen entrepreneurs’ skills in areas like financial literacy and compliance, increasing their odds of accessing future support. In the first quarter of 2025 alone, these efforts created more than 90,000 new jobs and supported over 116,000 entrepreneurs with resources ranging from funding to market access.
Backing from Big Players
Beyond Sterling Bank, SMEDAN is joining forces with state governments, the Bank of Industry, Google, and Wema Bank to enhance digital and financial literacy across the board. One standout effort includes helping MSMEs register formally with the Corporate Affairs Commission (CAC)—a major step toward qualifying for credit and scaling their businesses.
Another impressive project is SMEDAN’s Garment and Textile Hub in Idu, Abuja, developed with support from the United Nations Development Programme (UNDP). The hub offers affordable access to industrial-grade equipment and solar-powered workspaces. It has already become a haven for fashion entrepreneurs seeking to grow their craft in a safe and functional environment.
SMEDAN’s commitment to building capacity is also visible in its nationwide distribution of over 123,000 work tools in the first three months of 2025. These range from tricycles and generators to laptops and vehicles, impacting all 36 states. The tools aim to remove entry barriers for small businesses across key sectors.
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