By Felix Khanoba
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has unveiled an ambitious 2026 roadmap aimed at expanding job creation, easing access to affordable finance and driving inclusive growth across Nigeria’s micro, small and medium enterprises (MSMEs) sector.
Speaking at an interactive session with journalists in Abuja on Wednesday, SMEDAN Director-General, Charles Odii, said the agency’s 2026 agenda builds on significant gains recorded in 2025, including the creation of more than 90,000 direct jobs and the disbursement of ₦12bn in affordable financing to small businesses nationwide.
According to Odii, the new strategy is designed to reduce the cost of doing business for MSMEs while ensuring that government interventions reach their intended beneficiaries.“We are focused on creating more jobs and ensuring that small businesses can access finance at single-digit interest rates,” he said. “Anything above that is not sustainable for MSMEs, and we will not be part of it.”
The SMEDAN boss said the agency would also deepen access to low-cost funding through partnerships with the Bank of Industry, state governments and other development partners.
Odii disclosed further that several states, including Kaduna, Enugu, Zamfara and others, have adopted a matching-fund model, committing up to ₦1 billion each to support small businesses in their jurisdictions.
Under the arrangement, MSMEs can access funds for three specific purposes: boosting working capital, procuring workspaces or farms, and acquiring essential work tools.
He stressed that the funds are strictly for business growth and would be closely monitored to prevent diversion.
Beyond financing, SMEDAN is also prioritising skills acquisition and inclusion, particularly for vulnerable and marginalised groups. One of the most notable initiatives in the 2026 roadmap is a planned inmate rehabilitation and reintegration programme, under which the agency will provide vocational training to prison inmates between six months and one year before their release.
Odii said the initiative is aimed at breaking the stigma faced by formerly incarcerated persons and reintegrating them into the productive economy.“Many of them have told us that because of the stigma, people don’t want to touch them,” he said. “We want to equip them with skills and work with employers to absorb them back into the workforce as responsible, employable citizens.”
As part of its performance review for 2025, Odii reported that 90,162 direct jobs were created across multiple sectors, while 263,454 businesses were formally registered to improve access to finance and long-term sustainability.
In addition, 18,339 nano businesses received conditional grants, 3,100 cooperatives benefited from financial support, and over 200,000 work tools were distributed to artisans and small business owners nationwide.
Another pillar of the 2026 roadmap is the planned review of the National MSME Policy, which is due to expire on December 31, 2025.
Odii said the new 2026–2031 policy framework would be developed through extensive consultations with entrepreneurs across the 36 states and the Federal Capital Territory.“This policy will not be written behind a desk in Abuja,” he said. “We want small business owners to tell us what is working, what is not working, and what policies they want to see.”
To this end, he said SMEDAN has opened an online portal for stakeholders to submit inputs and is engaging the National MSME Council, chaired by the Vice President, to ensure broader participation at both federal and state levels.
The final draft of the revised policy is expected to be presented to the President after a final round of consultations, with completion targeted for the first quarter of 2026.
Infrastructure development also features prominently in the roadmap. Odii said SMEDAN plans to modernise 23 Industrial Development Centres (IDCs) across the country to align them with international best practices.
The upgraded centres will provide training, incubation and production support to MSMEs at no cost, further lowering barriers to entry for manufacturers and artisans.
However, the director-general identified poor awareness of government programmes and power supply as some of the challenges confronting the agency, adding that the biggest challenge was not the absence of policies or funding, but the disconnect between government initiatives and small business owners.
According to him, many MSMEs remain unaware of available programmes due to poor information flow, misinformation and limited engagement between government institutions and the private sector.
Odii said SMEDAN could not bridge the information gap alone and called for stronger collaboration with the media, professional groups and private sector stakeholders to ensure accurate dissemination of information.
He also identified access to reliable power as a persistent challenge for MSMEs, noting that energy costs continued to erode productivity and profitability for small businesses.
He said SMEDAN had deployed short-term solutions such as renewable energy systems and partnerships to provide alternative power sources in business clusters, but noted that heavy-duty machinery still relied largely on the national grid, which remained unstable.
Odii further said reliance on third-party microfinance institutions for fund disbursement had posed challenges, citing cases where some partner institutions were unable to sustain operations.
He said this had limited the agency’s ability to directly monitor fund utilisation and track impact.
According to him, these constraints have reinforced the need for closer monitoring mechanisms, improved stakeholder engagement and long-term structural reforms to strengthen the MSME ecosystem.
Odii reiterated SMEDAN’s commitment to addressing the challenges through partnerships, policy advocacy and sustained engagement with small business owners nationwide.
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