A fresh push to strengthen Nigeria’s entrepreneurship and vocational training ecosystem has emerged with the announcement that the Small and Medium Enterprises Development Agency of Nigeria has secured a $12 million commitment from the Government of South Korea to establish a world-class Skills Acquisition Centre in Abuja.
The project is expected to boost job creation, improve technical capacity, and expand opportunities for Micro, Small and Medium Enterprises (MSMEs) across the country, especially among young Nigerians seeking practical skills for employment and business growth.
A major skills investment tied to MSME development
The Director-General of SMEDAN, Charles Odii, disclosed the development in a statement marking the 2026 World MSME Day, themed “Empowering MSMEs through Innovation and Sustainable Industrial Development.”
According to him, the proposed centre will serve as a hub for vocational and entrepreneurial training, designed to enhance productivity among small businesses while also building a stronger pipeline of skilled workers for Nigeria’s informal and formal sectors.
He explained that implementation is currently dependent on the allocation of land by the Federal Capital Territory Administration, adding that the agency is determined not to lose momentum on the project.
“We need land in the FCT to build the Skills Acquisition Centre. If the FCT Administration is unable to provide one, we will use our office premises in Idu, Abuja, because we do not want Nigeria to miss this $12m commitment and opportunity offered by the Korean Government to support skills and vocational training,” he said.
Small businesses at the centre of economic strategy
Odii emphasized that the initiative reflects SMEDAN’s broader mandate of strengthening small businesses, which he described as the backbone of Nigeria’s economy due to their role in job creation and grassroots economic activity.
“Small businesses are the heartbeat of Nigeria’s economy. They contribute significantly to employment generation and economic growth. By providing infrastructure, skills and financing, we are creating an enabling environment for them to grow, thrive and contribute meaningfully to national development,” he stated.
New N500m zero-interest fund unveiled
Alongside the international partnership, SMEDAN also announced a N500 million zero-interest Grow Fund targeted at Micro, Small and Medium Enterprises.
The fund will be distributed through cooperative societies, trade associations, and business membership organisations under a revolving loan structure intended to improve accountability and widen access to credit.
Odii explained that the model was designed after direct engagement with market traders and small business operators.
“We visited traders at the market because it is not enough to sit in offices and formulate policies without understanding the realities of the people we are meant to serve,” he said.
“We met with butchers, pepper sellers, vegetable traders, provision store owners and market leaders, and they all said one thing: they need access to affordable finance.”
Association-based lending model introduced
Under the scheme, individuals will not receive direct disbursements. Instead, associations will manage funds and allocate loans to members based on need and capacity.
Odii said: “We are not giving the money directly to individuals. We are giving it to associations that know their members and can monitor how the funds are used.”
He explained that beneficiaries could access between N250,000 and N500,000, depending on requirements, and would be required to repay the exact amount borrowed since the loans carry zero interest.
“It is a revolving fund. When one beneficiary repays, another entrepreneur can access the same money. This way, the impact of the intervention continues to expand and more small businesses can benefit,” he added.
Expansion plans and policy reforms ahead
The SMEDAN boss also revealed that the initial N500 million fund is expected to grow through partnerships with state governments, development agencies, and financial institutions willing to provide matching support.
He added that consultations have begun on the National MSME Policy, which is expected to be relaunched in November, signalling another phase of reforms aimed at strengthening Nigeria’s small business environment.