FG deploys N11.7bn to power MSME growth
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The Federal Government will invest up to N11.76bn to drive the growth of Micro, Small, and Medium Enterprises and industrial revitalisation in 2026, as part of the capital projects budgeted for the Small and Medium Enterprises Development Agency of Nigeria in the 2026 Appropriations Bill.
An analysis of the capital allocation showed that projects directly targeting MSMEs, entrepreneurship and trade account for about N11.76bn of the total N26.87bn capital projects vote.
The allocation follows a broader push by the Federal Government, through the Federal Ministry of Industry, Trade and Investment, to deepen MSME financing, strengthen data integrity and accelerate industrial planning in 2026.
The most prominent allocation is a N2.1bn provision for the ‘Grow Nigeria for MSME Development’ programme, designed to scale enterprise support nationwide. The agency also earmarked N1.4bn to revitalise Industrial Development Centres and convert them into Common Facility Centres to reduce production costs for small manufacturers through shared infrastructure.
In a major logistics intervention, the budget set aside N3.5bn for the supply of project vehicles to SME ecosystem stakeholders across the country to improve programme monitoring and outreach.
On the policy and data front, the government allocated N154m for a comprehensive review of the national MSME policy, while N119m will fund the development of a Marketplace MSME Database. The database is expected to strengthen formalisation, enhance targeting of incentives and improve access to finance.
The government also earmarked N700m for a National MSME Green and Renewable Energy Initiative to help small businesses transition to cleaner and more affordable energy sources in line with global standards.
Capacity building received significant attention in the budget, with N1.05bn allocated to the National Business Skills Development Initiative. The agency further voted N350m for the ‘One Local Government One Product’ scheme to stimulate grassroots production and value addition.
To promote financial inclusion, the government budgeted N140m for financial literacy training, while N70m will support a microfinance bank initiative tailored for MSMEs. The agency also set aside N140m for alternative power solutions for entrepreneurs in Cross River State and N70m for solar power installations in business premises in Benue State.
Inclusion-focused programmes featured prominently. The budget provided N69.9m for the Women in Self Employment Programme and N29.7m for specialised skills development targeting internally displaced persons, inmates, and retirees.
To strengthen digital competitiveness, the agency allocated funds for digital skills training in partnership with global technology firms, N17.5m for an MSME Export Facilitation Programme, and N280m for the Enterprise Network Initiative.
Stakeholders in the SME ecosystem welcomed the targeted allocations but urged the government to prioritise access to affordable finance. In a phone interview with The PUNCH, the Director-General of the National Association of Small and Medium Enterprises, Eke Ubiji, affirmed that SMEDAN supported members in capacity development but needed to do more in funding access.
He said, “SMEDAN has been assisting our members, but not much in the area of access to funding and such. They assist them in capacity building and so on.”
On the proposed MSME database, he said the association was aware that the agency relied on data from organised groups. “What they do for that is they use the data from our groups,” Ubiji said.
He urged the agency to strengthen financial support mechanisms for small businesses. “What SMEDAN should focus on in terms of growth and development is to help our members get more access to funding. They should continue the capacity building, which they’ve already been doing,” NASME’s Chief added.
This MSME investment drive follows the Federal Government’s disbursement of $200m to small businesses and exporters in 2025, with more than 115,000 MSMEs benefiting from grants, loans, and trade finance interventions.
The Minister of State for Industry, Sen. John Enoh, said lessons from 2025 reinforced the urgency of strengthening MSME data and execution frameworks.
Enoh said, “Data gaps undermine good intentions. The absence of reliable MSME data constrained planning, targeting, and evaluation, reinforcing the urgency of a national MSME census.”
He stressed the importance of implementation discipline in public policy, noting, “Sector plans without ownership, sequencing, and monitoring do not translate into outcomes.”
The minister asserted that sustained engagement with industry players shaped the ministry’s direction. “Industry trust is built through listening, not announcements. Engagements with manufacturers, MSMEs, and investors confirmed that credibility is built when policy reflects real constraints, not theoretical models,” Enoh explained.
