The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has announced plans to strengthen business formalisation, broaden access to affordable funding, and introduce an updated national MSME policy in 2026.
Speaking to journalists in Abuja on Wednesday, SMEDAN Director-General, Mr. Charles Odii, described the coming year as a pivotal moment for Nigeria’s small business sector.
He explained that many of the planned initiatives are built on reforms and preparatory work undertaken over the past 18 to 24 months.
As part of its formalisation drive, SMEDAN aims to register more than 250,000 new enterprises in the first quarter of 2026, with discussions underway to potentially increase the target by an additional one million businesses.
Odii noted that formal registration will help small enterprises gain visibility, access government support programs, and contribute more effectively to economic growth.
The agency also plans to roll out a revised National MSME Policy, following the expiration of the current five-year framework.
The review process, which includes input from business owners across Nigeria’s 36 states and the Federal Capital Territory, is expected to conclude in the first quarter of the year.
“We cannot sit in Abuja and design policies without engaging MSMEs directly.
“We want to hear from them about what works, what doesn’t, and what policies they need, ” he said.
The updated policy will also incorporate social inclusion initiatives, such as supporting rehabilitated inmates with skills training and integrating them into the MSME sector.
On financing, SMEDAN is facilitating over N12 billion in low-interest loans for small businesses in collaboration with the Bank of Industry and state governments.
While about 500,000 enterprises have already benefited from similar programs, Odii said the agency is targeting more than three million beneficiaries to better reflect the scale of Nigeria’s MSME sector.
The loans, offered at 9–9.5 per cent interest, are intended for business expansion, equipment acquisition, and working capital.
Capacity building remains a key focus for SMEDAN in 2026. The agency plans to scale up entrepreneurship and business management training to enhance MSMEs’ preparedness for funding.
Odii emphasised that while financial resources exist within the system, many small businesses lack the necessary skills and organisational structures to access them.
Also, SMEDAN would expand access to business infrastructure, including shared workspaces and industrial clusters, through partnerships with state governments willing to support MSME growth.
