SMEDAN secures ₦1bn matching fund with Katsina State government to boost SMEs

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has announced a N1 billion funding arrangement for small enterprises in Katsina State.

The matching funding agreement with the state would begin this quarter with an initial infusion of ₦250 million, according to SMEDAN Director General Charles Odii, who signed a Memorandum of Understanding (MoU) with the state government in Abuja on Thursday.

The deal “marks another milestone in ongoing efforts to facilitate financial access for SMEs nationwide,” reads a statement released by the DG’s media office.

“Similar to agreements previously signed with the Anambra and Enugu state governments, the funds disbursed will be available to SMEs as single-digit interest loans, addressing the problem of expensive access to capital and expansion funds.

“Additionally, a Memorandum of Understanding (MoU) was signed between the agency and the state government to overhaul the Industrial Development Centre (IDC) in Katsina State.

The goal is to transform the IDC into an impactful incubator, providing SMEs with discounted access to modern tools and essential infrastructure, including power, thereby enhancing local production quality and reducing operational costs.”.

Speaking during the function, Odii praised Governor Radda for his unwavering dedication to the agency’s mission. Governor Radda was the agency’s director general for six years before becoming governor.

He emphasised their common goal of advancing SME expansion to propel national prosperity and referred to small companies as the backbone of the nation’s economy.

“The potential of SMEs in Nigeria to drive lasting growth and prosperity is undeniable. The evidence of their resilience and innovative brilliance is all around us. That said, government support remains crucial for their success. This is our mission at SMEDAN: to create an enabling ecosystem for SMEs to thrive, offering ready access to finance, streamlined market entry, and regulatory support.”

Dikko Radda, the governor of Katsina State, for his part, emphasised the significance of SMEs to the expansion of the economy and the country.

He underlined the work being done by the Katsina State SME development agency and the need for cooperation with SMEDAN in order to fully utilise the potential of SMEs to contribute to the creation of jobs and economic revival.