In a move to revitalize Nigeria’s small-scale businesses, the federal government has rolled out a N50 billion financial support program through the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). Spearheaded by President Bola Tinubu, this initiative aims to assist one million small businesses across the country, each receiving a N50,000 grant.
At the Delta North zone launch in Asaba, SMEDAN Director-General, Charles Odii, explained that the program targets “NANO businesses”—those with fewer than three employees and annual revenues below N3 million. He noted that the initiative is designed to provide immediate financial relief, empowering small businesses to grow, generate more income, and contribute to the national economy.
Odii emphasized the grant’s significance in addressing current economic challenges, stating, “Poverty knows no political party, sex, or age. A hungry man is an angry man, and hunger leads to unrest. We’re providing both short-term financial relief and long-term capacity-building solutions.”
Economic Challenges Loom Over the Initiative
While the program has been applauded for its intent, some business leaders have raised concerns about its sufficiency given Nigeria’s current economic realities. With inflation, the naira’s devaluation, and the removal of fuel subsidies driving up costs, many argue that N50,000 may not be enough to have a meaningful impact on small businesses.
Economists point out that, in today’s economy, this amount may barely cover daily operational expenses, let alone stimulate growth. They advocate for a broader approach, combining grants with low-interest loans and capacity-building programs to offer more sustainable relief.
SMEDAN’s Vision for National Impact
Despite concerns, Odii remains optimistic, citing that beneficiaries in Asaba have already received their N50,000 grants and urging recipients to invest wisely. He also noted that further financial support would be contingent on the effective use of the initial grants.
SMEDAN has rolled out the program in 14 states and aims to reach all 36 states and the Federal Capital Territory (FCT). Odii called for state government cooperation, stating, “When a small business grows, a family grows. Supporting small businesses feeds families and strengthens the economy.”
This ambitious initiative could be a lifeline for many small businesses, but its long-term success may depend on additional financial tools and broader economic reforms.
