SMEDAN Pushes Boundaries to Empower Nigerian Small Businesses

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is pushing up its interventions to support Micro, Small, and Medium Enterprises (MSMEs) across the country. In a bid to help small businesses survive current economic challenges and position for growth, the agency is driving multiple initiatives spanning funding, capacity-building, and formalization.

N5 Billion Loan Fund, but Only 5% Disbursed

One of SMEDAN’s key moves is a strategic partnership with Sterling Bank, which unlocked a N5 billion loan facility for small businesses. However, only N250 million—5% of the total—has been disbursed. The agency attributes this low uptake to poor documentation and lack of capacity among MSMEs, which disqualifies many from meeting loan requirements.

To bridge this gap, SMEDAN launched a national MSMEs data bank that profiles businesses and tracks their development. By registering, businesses boost their chances of securing future financial support and can be more easily monitored for impact and accountability.

SMEDAN has reiterated that the Sterling Bank fund is a loan, not a grant, and repayment is expected. The agency hopes that more MSMEs will qualify as they fulfill requirements like proper business documentation and financial records.

To complement this, SMEDAN has entered agreements with several state governments and the Bank of Industry to scale its funding efforts. Through regular business clinics, it is also addressing the root issue: building the financial literacy and administrative skills of small business owners.

Over 90,000 Jobs Created, 116,000 Entrepreneurs Reached

In Q1 2025 alone, SMEDAN says its interventions led to the creation of over 90,160 jobs. More than 116,000 entrepreneurs have also benefited from programs offering finance, training, and access to markets. Collaborations with private sector partners like Google and Wema Bank have further equipped thousands with digital and financial literacy skills.

The agency is also helping businesses formalize operations through CAC registrations, a crucial step in qualifying for funding and integrating into broader value chains.

Looking ahead, SMEDAN plans to deepen its outreach, create more sector-specific hubs, and strengthen partnerships to further improve MSME access to finance and critical value chains.

The agency also reaffirmed its alignment with President Bola Ahmed Tinubu’s Renewed Hope agenda, vowing to continue empowering Nigerian entrepreneurs to build a stronger, more inclusive economy.