The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has revealed plans to launch a microfinance bank and wants the Central Bank of Nigeria (CBN) to grant it an operating licence.
Director-General of SMEDAN, Charles Odii, disclosed this during a media parley in Abuja on Wednesday, while unveiling the agency’s five-point agenda for 2026.
He said this will enable the agency to directly disburse and monitor funds intended for small businesses, as well as attract more international development finance.
The push would significantly expand Nigeria’s MSME base, noting that the agenda covers business formalisation, policy overhaul, financing, capacity building and infrastructure.
“And that is actually what 2026 is going to do; it is going to unfold all the good things that we’ve worked on for the last 18 to 24 months.
READ ALSO: Motorists Flood MRS Filling Stations in Lagos as Petrol Price Drops to ₦739 Per Litre
“And the first one will basically be the formalisation of our small businesses. In 2026, we would have over 250,000 new registered businesses, but we’re pushing with the presidency for another one million,” Odii said.
The move comes as SMEDAN is currently lobbying for a million more small businesses, in addition to its target of registering at least 250,000 new businesses in 2026.
The SMEDAN boss believes that the policies affecting MSMEs should reflect the realities of operators across the states.
He hinted that access to affordable credit would be a major focus in 2026, stating that the agency is rooting for single-digit loans for millions of small businesses nationwide.
READ ALSO: SEC, SMEDAN Sign MoU to Improve Funding for SMEs
“There is going to be a lot of funding for our small businesses… I mean, cheap funding. The money that we have negotiated is at a single digit. It is at 9%. The most expensive one is 9.5%,” Odii stated.
According to him, about 500,000 MSMEs have already accessed such funding, but SMEDAN is aiming to scale it to between three million and five million businesses to reflect the size of the sector.
“If you ask all the banks today, they will tell you that there is money for small businesses,” he said, adding that poor capacity had limited access to existing funds.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
