SMEDAN moves to secure CBN licence for microfinance bank as FG targets one million additional firms
Story by Martha Gwary
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has applied for a licence from the Central Bank of Nigeria (CBN) to establish a microfinance bank, a move aimed at enabling the agency to directly disburse and monitor funds for small businesses while attracting more international development finance.
This comes as the agency intensifies efforts to expand Nigeria’s small business landscape, with plans to register at least 250,000 new enterprises in 2026 and ongoing discussions with the Presidency to add a further one million firms.
The Director-General of SMEDAN, Mr Charles Odii, disclosed this on Wednesday during a media engagement in Abuja, where he outlined the agency’s five-point agenda for 2026. The priorities include business formalisation, policy reform, financing, capacity building and infrastructure development.
Mr Odii said the initiatives would significantly broaden Nigeria’s micro, small and medium enterprises (MSME) base as the Federal Government steps up efforts to transition informal businesses into the formal economy.
According to him, the coming year would mark the culmination of reforms and groundwork laid over the past 18 to 24 months, with business formalisation at the forefront.
“In 2026, we expect to have more than 250,000 newly registered businesses. Beyond that, we are engaging the Presidency to secure an additional one million registrations,” he said.
He also announced plans to introduce a revised National MSME Policy in 2026, noting that the existing framework, last reviewed in 2021, is due to expire at the end of this year.
“The MSME policy runs for five years. The current one was completed in 2021 and is due for review by December 31. In 2026, we will unveil a new national MSME policy,” Mr Odii said.
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He stressed that the review process would be inclusive, ensuring that the perspectives of MSME operators across the 36 states and the Federal Capital Territory are reflected, with completion targeted for the first quarter of 2026.
On access to finance, the SMEDAN chief said affordable credit would be a major focus next year, revealing that the agency has negotiated about ₦12 billion in funding at single-digit interest rates for small businesses nationwide.
“The funding we are putting together is cheap. The negotiated rates are in single digits, with the highest at 9.5 per cent,” he said.
Mr Odii disclosed that about 500,000 MSMEs have already benefited from such facilities, but the agency aims to scale this up to between three million and five million businesses, in line with the size of the sector.
Capacity development, he added, constitutes the fourth pillar of the 2026 agenda. SMEDAN plans to expand training under its Integrated Capital Support Scheme to help MSMEs improve their bankability and gain better access to finance.
“Banks have funds available for small businesses, but limited capacity among operators has restricted access,” he noted.
He identified infrastructure as the final focus area, explaining that SMEDAN is working with state governments and development partners to replicate industrial hubs nationwide, improve access to power and lower the cost of doing business—outcomes he said are closely linked to job creation and national security.
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