The federal government is stepping up efforts to strengthen the MSME sector through closer inter-agency collaboration, improved financing channels and technology-driven incubation programmes, which are projected to have the potential to create up to 300,000 additional jobs if current momentum is maintained.
The new push followed a high-level meeting chaired by Vice President Kassim Shettima at the Presidential Villa in Abuja. Briefing journalists after the session, Mohamed Idris, Minister of Information and National Orientation, said recent developments in the MSME sector reflect the impact of ongoing economic reforms.
He explained that progress in this area is evidence that broader reforms are beginning to yield tangible results. He said the meeting brought together government officials, development partners and private sector stakeholders to review active programs and evaluate interagency cooperation to drive business growth.
The minister commended the MSME Special Adviser’s Office for strengthening inter-agency collaboration, noting that the sector had created around 250,000 jobs in the past year. He said if this pace is maintained, even if modest compared to national demand, it will create an additional 300,000 jobs, expand economic participation and deepen financial inclusion.
He also cited increased international engagement, improved credit ratings and stronger investor sentiment as indicators that Nigeria’s reform agenda is being recognized. He added that joining the continent’s business platform demonstrates the country’s ambition to entrench sustainable growth across Africa.
Special Assistant to the President on Small and Medium Enterprises, Tola Adekunle Johnson, said President Bola Tinubu had directed federal agencies supporting small and medium-sized enterprises to operate under a unified framework aimed at accelerating job creation and simplifying access to finance.
Under this collaboration, institutions such as the Industrial Training Fund, Nigeria Small and Medium Enterprises Development Authority, Nigeria Export Promotion Council and Nigeria Investment Promotion Board are expected to work as a connected system rather than silos.
He said the consolidation is aimed at reducing borrowing costs for MSMEs, opening up new markets and streamlining support structures. State-level cooperative agencies have already introduced risk mitigation funds that provide loans at 9-10% interest rates. The Vice President also directed SMEDAN to deepen engagement with state governments to expand funding coverage and NEPC to expand export opportunities for small and medium enterprises.
Charles Oddy, Executive Director of SMEDAN, stressed that tackling unemployment requires cross-sector partnerships, noting that job creation efforts need to be integrated across public and private institutions. He said the agency is strengthening collaboration between the government and the private sector and working with lawmakers ahead of policy updates targeting MSME growth.
Mr Odi said there were an estimated 39.6 million nano, micro and small and medium enterprises in Nigeria. A new census is underway to improve data accuracy, which officials say will improve planning and resource allocation.
SMEDAN plans to roll out targeted support programs for 2026, including an ITF-backed initiative for textile and fashion professionals that will provide business setups worth N5 million each to selected designers and tailors.
He also announced the establishment of West Africa’s first Meta Digital Fabrication Center in Lagos, scheduled to be operational in April. Similar centers are planned in other states, with each hub designed to leverage local comparative advantages. Sectors targeted for digital integration to improve productivity and competitiveness include wood groups in Edo and Ondo, ceramic production in mineral-rich regions, and leather processing in Kano.
According to Odii, participants in these programs are required to mentor other entrepreneurs, creating a synergy that expands employment opportunities and enterprise growth throughout the community.
For Nigeria’s 39.6 million MSMEs, the government’s strategy signals a shift towards structured coordination, technology implementation and targeted financing. If implementation matches ambition, the projected 300,000 new jobs could provide meaningful relief to small and medium-sized businesses weathering high costs, limited credit access and evolving market demands.
