Small businesses have never had it so good all thanks to the concerted efforts being made by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
With all intent and purpose, the agency has been working round the clock to ensure that the medium small and micro enterprises not just stay afloat but make good.
Indeed, SMEDAN has been working tirelessly to support small businesses across the country.
According to the agency’s Director General, Mr. Charles Odii, SMEDAN has partnered with Sterling Bank to provide funding for small businesses, with N5 billion allocated for this purpose.
However, despite the efforts, only 5% of the funds have been disbursed, with Odii citing lack of capacity and proper credentials as major challenges faced by small businesses.
Odii noted that the agency has created an MSMEs data bank to track small businesses and facilitate access to funding. He emphasised that the loan is to be paid back and not a grant. SMEDAN is expecting more small businesses to access the loan and plans to monitor the disbursement of funds by the end of April 2025.
“In 2024, Sterling Bank came through for small businesses by partnering with SMEDAN. The bank has five billion naira, (N5billion) and so far, two hundred and fifty million has been disbursed to small businesses. This is just 5% of the N5billion, they have not even scratched the surface of the funding.
“Reason why it could not be harnessed is because most of the small businesses do not have the right credentials or capacity to access these funds. The agency saw these loopholes and decided to make some changes by creating an MSMEs data bank, where small businesses have to register to enable the agency to have full statistics of their numbers. To also have their track records while giving out finances.
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“This will help with the disbursement of funds to these small businesses and a lot of information for the agency to help make a firm decision in tackling challenges facing small businesses. The record SMEDAN has now on fund disbursement is 5 %. We are expecting to hear soon that more small businesses have accessed the loan. The DG made it clear that this is a loan and to be paid back and not a grant.”
The agency has also signed a Memorandum of Understanding (MOU) with state governments and the Bank of Industry to disburse more loans to small businesses. Odii highlighted that many small businesses lack the capacity to unlock business loans, with most being run without proper records. To address this, SMEDAN is working to train and license more people to increase their capacity to access loans.
In the first quarter of 2025, SMEDAN reported creating over 90,160 new jobs through targeted empowerment programs and strategic collaborations. The agency has supported over 116,000 entrepreneurs nationwide with vital resources, including training, access to finance, and markets.
SMEDAN’s empowerment efforts have been supported by partnerships with private sector players, such as Google and Wema Bank, to train thousands of entrepreneurs in digital and financial literacy skills. The agency has also helped thousands of small businesses register with the Corporate Affairs Commission (CAC), enabling them to access funding and participate in supply chains.
“The money stipulated for these businesses ranges from two hundred and fifty thousand naira to ten thousand, apart from this loan we have other programmes where we give out grants, my disappointment as the DG is that so many of our small businesses cannot unlock these loans. The government is presently reaching out to some small businesses that have the capacity to unlock these types of finances. Five billion naira will do a lot in the ecosystem but we cannot disburse if they meet up with the loan requirements.”
Odii pointed out that the government is experiencing stunted disbursements with these loans because it is not going the way they expected, the small businesses do not have the right capacity and again most small businesses are run without records. We are working through our business clinics to train more people and licence them to increase their capacity to unlock their business loans.
He added that the agency has created over 90,160 new jobs in the first quarter of 2025, driven by targeted empowerment programs and strategic collaborations. The Q1 performance report of the agency has supported more than 116,000 entrepreneurs nationwide with vital resources including training, access to finance, markets and the distribution of work tools.
“SMEDAN’s empowerment efforts were supported by a growing network of partners in addition to its collaboration with members of the National Assembly, the agency worked with private sector players such as Google and Wema Bank to train thousands of entrepreneurs, equipping them with digital and financial literacy skills critical for modern enterprise.
“Key highlight of SMEDAN’s work is its support for the formalization of thousands of small businesses, helping them register with the Corporate Affairs Commission (CAC). These businesses are now better positioned to access funding, participate in supply chains, and compete in local and international markets.”
The DG spoke about the agency’s Garment and Textile Hub at the Industrial Development Centre in Idu which has become a model of inclusive industrial growth. The hub provides fashion entrepreneurs with affordable access to modern industrial machines, steady power solarized through a partnership with UNDP—and a safe, conducive workspace. The result is increased productivity, job creation, and a pathway to scale for local designers.
“This report underscores the impact of our GROW Nigerian strategy, which focuses on providing Guidance, Resources, Opportunities, and Workforce support to small businesses across the country. We are deliberately mobilizing and directing resources to help small businesses grow, expand, and transition into the formal sector where their contributions can be properly captured and supported. At the same time, we’re helping them improve their production processes to compete more effectively in both local and global markets. The result is more jobs, stronger businesses, and greater value unlocked within communities nationwide.”
While in Q1, the agency has signed a number of strategic partnerships which will begin to yield results in the second quarter. These collaborations are designed to expand SME access to finance, unlock value chains, and prepare Nigerian businesses to compete globally. From product quality to pricing, ‘we’re helping entrepreneurs build businesses that can serve both local and export markets.
Recent SMEDAN updates include a grant disbursement, a partnership with Sterling Bank, and support for MSMEs through various initiatives. SMEDAN is also focusing on empowering entrepreneurs and creating job opportunities nationwide.
SMEDAN is planning to disburse a N1 billion conditional grant to micro, small, and medium enterprises (MSMEs) in 2025, as detailed in their 2025 budget proposal to the National Assembly.
Besides, SMEDAN in partnership with Sterling Bank aims to provide SMEs with a N5 billion naira loan facility, offering competitive rates and support for business growth and formalisation, according to SMEDAN.
In the area of MSME empowerment initiatives, SMEDAN continues to empower MSMEs through initiatives like the launch of a 120KVA mini-grid and a state-of-the-art makerspace, in collaboration with the UNDP, to enhance energy access and innovation, says the United Nations Development Programme. This is just as the Business Development Service Providers (BDSPs), which is a new cohort of certified BDSPs to provide tailored support to MSMEs, helping them formalise operations and seize opportunities, according to a recent Small Business Insights post.
SMEDAN has launched a Talent Hunt initiative to empower the next generation of entrepreneurs. SMEDAN organised the National MSME Conference 2024, providing a platform for networking, knowledge sharing, and showcasing successful MSME initiatives. In terms of capacity building SMEDAN has also focused on upskilling its own staff with ICSS certification.
Job creation
SMEDAN has created over 90,160 jobs in the first quarter, just as it has empowered 116,661 entrepreneurs nationwide, all thanks to the targeted empowerment programmes and strategic collaborations.
According to its Q1 performance report, the agency also supported more than 116,000 entrepreneurs nationwide with vital resources including training, access to finance and markets, and the distribution of work tools.
The agency’s empowerment efforts were supported by a growing network of partners. In addition to its collaboration with members of the National Assembly, SMEDAN worked with private sector players such as Google and Wema Bank to train thousands of entrepreneurs, equipping them with digital and financial literacy skills critical for modern enterprise.
A key highlight of SMEDAN’s work is its support for the formalisation of thousands of small businesses, helping them register with the Corporate Affairs Commission (CAC). These businesses are now better positioned to access funding, participate in supply chains, and compete in local and international markets.
In Abuja, the agency’s Garment and Textile Hub at the Industrial Development Centre in Idu has become a model of inclusive industrial growth. The hub provides fashion entrepreneurs with affordable access to modern industrial machines, steady power—solarized through a partnership with UNDP—and a safe, conducive workspace. The result is increased productivity, job creation, and a pathway to scale for local designers.
To further support business growth, SMEDAN distributed a wide range of essential work tools including sport utility vehicles, mini buses, laptop computers, industrial sewing machines, tricycles, power generators, and more, helping entrepreneurs across states start or expand their businesses. In total, the agency distributed 123,743 work tools in Q1 2025, covering all 36 states of the country.
Speaking on the report, the SMEDAN boss, Odii said: “This report underscores the impact of our GROW Nigerian strategy, which focuses on providing Guidance, Resources, Opportunities, and Workforce support to small businesses across the country. We are deliberately mobilising and directing resources to help small businesses grow, expand, and transition into the formal sector where their contributions can be properly captured and supported. At the same time, we’re helping them improve their production processes to compete more effectively in both local and global markets. The result is more jobs, stronger businesses, and greater value unlocked within communities nationwide.”
He added: “We’ve also signed a number of strategic partnerships in Q1, which will begin to yield results in the second quarter. These collaborations are designed to expand SME access to finance, unlock value chains, and prepare Nigerian businesses to compete globally. From product quality to pricing, we’re helping entrepreneurs build businesses that can serve both local and export markets.
Mr. Odii reaffirmed SMEDAN’s commitment to national development: “Our work is in line with the Renewed Hope agenda of President Bola Ahmed Tinubu, which focuses on fixing the fundamentals and investing in ventures that deliver real impact. With the right structure and support, Nigerian SMEs can drive lasting, inclusive economic growth.”
Looking ahead, SMEDAN says it will deepen its reach, expand sector-specific hubs, and continue to foster partnerships that open new doors for Nigeria’s vast entrepreneurial class.