The Federal Government is set to invest up to N11.76bn in 2026 to drive the growth of Micro, Small, and Medium Enterprises (MSMEs) and support industrial revitalisation across the country. The funding forms part of the capital projects allocated to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in the 2026 Appropriations Bill.
An analysis of the capital allocation shows that projects directly targeting MSMEs, entrepreneurship, and trade account for about N11.76bn out of the total N26.87bn capital projects vote for the agency. The allocation reflects a broader push by the Federal Ministry of Industry, Trade and Investment to deepen MSME financing, strengthen data integrity, and accelerate industrial planning in 2026.
The largest single allocation is N2.1bn for the Grow Nigeria for MSME Development programme, designed to scale enterprise support nationwide. SMEDAN also earmarked N1.4bn to revitalise Industrial Development Centres and convert them into Common Facility Centres. The move is expected to reduce production costs for small manufacturers by providing shared infrastructure.
In a major logistics intervention, N3.5bn was set aside for the supply of project vehicles to SME ecosystem stakeholders across the country to improve programme monitoring and outreach.
On policy and data reforms, 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 improve formalisation, enhance targeting of incentives, and increase access to finance.
To support energy transition, N700m was earmarked for a National MSME Green and Renewable Energy Initiative to help small businesses adopt cleaner and more affordable energy solutions in line with global standards. In addition, N140m was set aside for alternative power solutions for entrepreneurs in Cross River State, while N70m will fund solar power installations in business premises in Benue State.
Capacity building also received strong attention, with N1.05bn allocated to the National Business Skills Development Initiative. Another N350m was voted for the One Local Government One Product scheme to stimulate grassroots production and value addition across communities.
To promote financial inclusion, N140m was budgeted for financial literacy training, and N70m will support a microfinance bank initiative tailored specifically for MSMEs.
Inclusion-focused programmes were also featured in the budget. The government 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, SMEDAN allocated funds for digital skills training in partnership with global technology firms. The agency also set aside 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 obtained by Nigeria Startup News, the Director-General of the National Association of Small and Medium Enterprises, Eke Ubiji, said while SMEDAN had supported members in capacity development, more effort was needed 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.”
Speaking on the proposed MSME database, Ubiji noted that the association was aware the agency relied on data from organised groups. “What they do for that is they use the data from our groups,” he 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.
The MSME investment drive follows the Federal Government’s disbursement of $200m to small businesses and exporters in 2025. More than 115,000 MSMEs benefited from grants, loans, and trade finance interventions during the period.
The Minister of State for Industry, Sen. John Enoh, said lessons from 2025 highlighted the urgency of strengthening MSME data systems 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. “Sector plans without ownership, sequencing, and monitoring do not translate into outcomes,” he noted.
The minister also said 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.
