By Lucy Ogalue, News Agency of Nigeria (NAN)
Micro, Small and Medium Enterprises (MSMEs) remain a critical pillar of Nigeria’s economy, accounting for a large share of employment, income generation and grassroots economic activity.
However, operators continue to face challenges ranging from limited access to finance and skills gaps to infrastructure constraints and weak policy coordination.
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) says it is intensifying reforms, financing support, capacity development and infrastructure interventions to help small businesses move from survival to sustainability.
Speaking at an interactive session with journalists in Abuja, the Director-General of SMEDAN, Mr Charles Odii, said that business formalisation would accelerate in 2026 following groundwork laid over the past two years.
Odii said that SMEDAN targeted the registration of over 250,000 new businesses by the first quarter of 2026, noting that discussions with the presidency could further scale up the figure.
On MSME policy to shape the ecosystem, the SMEDAN boss said that the agency was leading the review of the National MSME Policy, which expired at the end of 2025.
According to Odii, the revised policy will be unveiled in 2026 after nationwide consultations and collaboration with relevant stakeholders.
“We can not sit behind desks in Abuja and write policies for small businesses in the 36 states and the FCT. Small businesses must be part of shaping the policies that affect the,” he said.
The director-general described MSMEs as the backbone of Nigeria’s industrial economy.
He said that said strengthening them was critical to job creation, value addition and inclusive economic growth.
Odii said that SMEDAN was brokering about N12 billion in single-digit interest loans in partnership with the Bank of Industry (BoI) and several state governments.
According to him, all the were negotiated at single-digit interest rates, between nine per cent to about 9.5 per cent.
On capacity building and skills development, he said that many MSMEs still struggled to access funding due to weak managerial and financial capacity.
“If you ask banks today, they will tell you there is money for small businesses. But many small businesses are not equipped enough to access that money,” he said.
He said the agency was engaging in capacity building and training sessions for small business owners to equip them with skills on how to access such facilities.
To reduce operating costs for MSMEs, Odii said that SMEDAN was investing in shared workspaces and industrial facilities nationwide.
The Managing Director of the Bank of Industry (BOI), Dr Olasupo Olusi, said that collaboration with agencies such as SMEDAN was essential to improving MSME loan performance.
“SMEDAN helps prepare small businesses to become bankable. That preparation reduces risk and improves loan performance,” he said.
A development economist, Dr Mary Atama, said that access to finance must be complemented by skills development.
“Finance alone will not solve MSME challenges. Skills, discipline and market knowledge are equally important.
“They should be given all the support necessary, especially through training and capacity building to help address many of their challenges,” she said.
At an energy policy dialogue, an energy analyst, Mr Justine Achimugu. said that decentralised power solutions could significantly reduce MSME operating costs.
Achimugu said that small businesses could not rely on the national grid alone.
He called for emphasis on practical alternatives such as hybrid and renewable solutions.
Mrs Anita Okafor, an economist, reiterated the need for fiscal measures by the government to support MSMEs to grow.
According to Okafor, price instability due to hyperinflation affects operations of small businesses.
“Small businesses face multiple challenges which affect their businesses and there is a need for government action to support MSMEs.
“The government needs to reduce inflation, stabilise prices of products and provide funds at low interest rates to support MSMEs,” she said
Similarly, Mr Godspower Jideofor, a financial expert, emphasised the importance of creating an enabling environment for small businesses to thrive in the country.
“SMEs in many nations are responsible for the economic growth and development of the nation. They, therefore, require basic infrastructure to support their businesses.
” If we have good road networks and stable power supply, the cost of production becomes relatively cheaper for SME operators.
“The government has a great role to play in ensuring the provision of the basic infrastructure and the right environment for business to thrive.”
A small business operator, Mrs Blessing Obinna, decried the many challenges small businesses faced in Nigeria that hinder expansion and growth.
“Some of the challenges, including the unstable state of the economy, poor state of infrastructure and unstable power supply have forced so many businesses to shut down or relocate,” she said.
According to Obinna, it is also very crucial to facilitate discussions on strategies that will help position small and medium business operators for sustainable growth.
She called on the government and other relevant stakeholders, as well as agencies like SMEDAN, to provide the needed support to small businesses for the growth and development of the country.
Meanwhile, the Registrar-General of the Corporate Affairs Commission (CAC), Mr Hussaini Magaji, said that formalisation remained key to MSME growth.
“When businesses are formalised, they gain credibility. It becomes easier for them to access financing, participate in government
programmes and scale their operations,” he said.
As Nigeria pursues economic diversification, stakeholders agree that MSMEs remain central to inclusive growth.
With reforms in policy, finance, skills development and infrastructure, SMEDAN says it is positioning small businesses as engines of job creation, innovation and long-term economic stability.(NANFeatures)
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