Nigeria’s SMEDAN Unveils Plan to Enhance MSME Jobs and Revenue Generation

 The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched an ambitious strategy to bolster micro, small, and medium enterprises (MSMEs) by creating 500,000 jobs and increasing their revenue contribution to Nigeria’s GDP by 10% by 2027. Announced on May 12, 2025, in Abuja, the initiative targets the sector’s critical role, as MSMEs account for 48% of Nigeria’s $477 billion GDP and employ 84% of the workforce.

The plan focuses on three pillars: access to finance, market expansion, and capacity building. SMEDAN will disburse ₦50 billion in low-interest loans through partnerships with the Bank of Industry and commercial banks, targeting 100,000 MSMEs in sectors like agriculture, manufacturing, and tech. A ₦5 billion grant fund will support women and youth-led enterprises, addressing the 60% gender gap in MSME ownership. To enhance market access, SMEDAN is establishing 10 new export hubs in Lagos, Kano, and Port Harcourt, aiming to double MSME exports, currently at $2 billion annually, by integrating them into global e-commerce platforms like Amazon and Alibaba.

Capacity building includes training 200,000 entrepreneurs in digital skills, financial management, and sustainable practices, with 50 business development centers upgraded nationwide. SMEDAN’s collaboration with the National Bureau of Statistics will improve MSME data collection, addressing the challenge of unregistered businesses, estimated at 70% of the 40 million MSMEs. The agency also plans to streamline regulatory compliance, reducing the $1,000 average cost of business registration through a one-stop digital portal launching in August 2025.

Challenges include Nigeria’s 24.48% inflation rate and unreliable power supply, which increases MSME operating costs by 30%. SMEDAN is advocating for tax holidays and subsidized electricity tariffs to ease these burdens. The initiative builds on a 2024 pilot that created 50,000 jobs in Ogun and Anambra, with beneficiaries reporting a 25% revenue increase. Director-General Charles Odii emphasized that empowering MSMEs is key to reducing Nigeria’s 33% unemployment rate and achieving inclusive growth. The plan’s success hinges on effective implementation and sustained government support amidst economic uncertainties.