The Director-General of SMEDAN, Charles Odii, shared the agency’s roadmap during a press briefing in Abuja on Wednesday, highlighting achievements from 2025 while outlining strategies designed to strengthen the MSME ecosystem and boost economic growth.
Formalising Millions of Businesses
A central pillar of SMEDAN’s 2026 agenda is the formalisation of small businesses across Nigeria. Odii revealed that by the first quarter of 2026, the agency aims to formalise 250,000 new businesses, with additional efforts underway to register another one million enterprises.
“We counted about 39.6 million nano, micro, small, and medium enterprises last year,” Odii said. “With the ongoing formalisation process, we expect this number to grow, bringing more businesses into the formal economy and unlocking access to finance, training, and government support.”
Formalisation, he explained, is not only about numbers but also about creating a more structured business environment where small enterprises can thrive.
Policy Overhaul and Stakeholder Engagement
SMEDAN is also reviewing the national MSME policy, which guides the sector for five years. The revised policy is slated for announcement by December 31, 2025. Stakeholders and small business owners are being consulted to ensure the policy reflects on-the-ground realities and promotes inclusive growth.
Odii stressed that small businesses must actively shape policies that affect them. “We are engaging with stakeholders to get their input before submission to the President and the Federal Executive Council for approval,” he said.
Additionally, the agency is exploring initiatives to reintegrate former inmates into the workforce by providing pre-release vocational training, helping them gain marketable skills despite societal stigma.
Expanding Access to Finance
Access to funding remains a critical challenge for Nigerian SMEs. SMEDAN plans to broker N12 billion in low-interest funding to support more than three million businesses nationwide. The agency has already partnered with state governments and commercial banks to provide single-digit interest loans in states including Enugu, Kaduna, Katsina, and Zamfara.
Odii noted that these loans allow entrepreneurs to expand working capital, acquire tools, and secure workspaces. “By supporting SMEs financially, we are enabling them to grow, create jobs, and contribute meaningfully to national development,” he said.
Capacity Building and Training
Capacity development is another key focus for 2026. SMEDAN has trained roughly 6,000 businesses under its ICSS curriculum and plans to double or quadruple that number next year. Training covers areas such as financial literacy, access to finance, export readiness, and leveraging the African Continental Free Trade Area (AfCFTA) to reach international markets.
“Knowledge and skills are the foundation of business growth,” Odii said. “By empowering entrepreneurs, we increase their chances of success and sustainability.”
Infrastructure Expansion for SMEs
To tackle operational challenges like lack of workspace and equipment, SMEDAN has modernised several industrial development centres across Nigeria, including hubs in Abuja, Katsina, Osun, and Ikorodu. These centres offer affordable workspaces, tools, and power to small business owners.
Plans are underway to scale these facilities nationwide, aiming to establish 774 operational centres to stimulate job creation, reduce unemployment, and address insecurity.
Supporting Micro and Local Enterprises
SMEDAN’s Conditional Grant Scheme has already benefited over 18,000 nano-businesses in 2025, helping them expand operations and generate employment. Similarly, the One Local Government, One Product initiative awarded grants and loans to 3,100 enterprises, promoting local resource development.
Through the National Reach Competition, millions of dollars have been disbursed quarterly to fund viable business ideas, further reinforcing the agency’s commitment to entrepreneurial empowerment.
Future Plans: Microfinance Bank and Entrepreneurship Polytechnic
Looking ahead, SMEDAN will seek regulatory approvals to operate a microfinance bank and establish a polytechnic and mono-technic focused on entrepreneurship education. The institutions will offer accredited diplomas and provide direct funding channels for small businesses.
“This is about giving SMEs more tools to succeed,” Odii said. “Access to finance, quality training, and formal structures are all essential for sustainable growth.”
Linking SMEs to Economic Stability and Security
Odii also highlighted the broader impact of a thriving SME sector, noting the connection between employment, economic empowerment, and national security. “Hunger leads to anger; anger leads to violence. By supporting SMEs, we address insecurity at its root,” he said.
He encouraged small businesses and stakeholders to actively engage with SMEDAN’s platforms and leverage upcoming reforms and opportunities.
SMEs: The Backbone of Nigeria’s Economy
MSMEs account for over 90% of businesses in Nigeria and employ tens of millions across formal and informal sectors. Yet, access to finance, weak formalisation, limited infrastructure, and skill gaps have long hindered their growth. SMEDAN’s 2026 agenda, building on its 2025 achievements, aims to tackle these challenges, stabilise the economy, create sustainable jobs, and empower entrepreneurs nationwide.