Nigeria’s Small and Medium Enterprises Development Agency (SMEDAN) is set to implement an ambitious agenda for 2026, prioritizing the formalisation of one million businesses and securing N12 billion in accessible, low-interest funding for micro, small, and medium enterprises (MSMEs). The agency’s Director-General, Charles Odii, outlined these key initiatives, emphasizing a strategic push to bolster the backbone of the Nigerian economy.

Central to SMEDAN’s 2026 plans is a significant drive to formalise businesses, with an initial target of registering 250,000 new enterprises in the first quarter. Beyond this, the agency is actively collaborating with the presidency to bring an additional one million businesses into the formal sector, aiming to increase the current number of approximately 39.6 million MSMEs.

Further expanding its role, SMEDAN is seeking regulatory approval from the Central Bank of Nigeria to establish a microfinance bank. This move, alongside plans to launch an entrepreneurship-focused polytechnic offering diplomas in business education, aims to create more direct channels for funding and enhance specialised skills development within the sector.

In terms of financial support, SMEDAN is facilitating N12 billion in funding with single-digit interest rates. This initiative is designed to reach over three million SMEs, providing them with crucial capital to expand their operations, procure necessary equipment, and improve working capital, thereby fostering growth and job creation.

Capacity building remains a cornerstone of SMEDAN’s strategy. The agency plans to significantly increase the number of businesses trained under its ICSS curriculum, aiming to double or quadruple the current figure of 6,000 participants. This training focuses on essential areas like financial literacy, access to finance, and export readiness, preparing SMEs for both domestic and international markets.

To address infrastructure deficits, SMEDAN has revitalised several industrial development centres across the country, offering affordable workspaces, tools, and power. The agency intends to expand this model nationwide, establishing 774 operational centres to combat unemployment and insecurity at the grassroots level.

SMEDAN is also reviewing the national MSME policy, which guides the sector for five-year periods. Stakeholder consultations are underway, with a draft policy expected to be shared for feedback before submission to the President and Federal Executive Council for approval by the end of 2025.

The agency’s commitment extends to social integration, with plans to develop policies that help former inmates reintegrate into the workforce. Pre-release training programmes are being implemented to equip them with employable skills, mitigating societal stigma and reducing recidivism.

Highlighting past successes, Odii mentioned the Conditional Grant Scheme, which disbursed grants to over 18,000 nano-businesses, and the One Local Government, One Product initiative, which supported 3,100 corporations. The National Reach Competition also continues to identify and fund promising business ideas.

SMEDAN’s comprehensive approach recognises the critical link between supporting SMEs, fostering economic empowerment, and enhancing national security. By addressing fundamental challenges such as access to finance, formalisation, and infrastructure, the agency aims to create a more robust and resilient MSME ecosystem.

The agency has also registered over 260,000 businesses, facilitating their access to financial services through bank accounts and credit histories. These efforts, coupled with partnerships with state governments and commercial banks, demonstrate a concerted push to unlock the full potential of Nigeria’s entrepreneurial landscape.

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Keywords: Nigeria SMEs, SMEDAN funding, business formalisation Nigeria, MSME policy, microfinance bank Nigeria, entrepreneurship education, SME capacity development, access to finance Nigeria