The Alliance for Economic Research and Ethics Ltd/Gte has faulted the Federal Government’s ₦1 billion Micro, Small, and Medium Enterprises (MSME) awards scheme, describing it as a “lottery dressed as policy” that will do little to solve the real problems facing small businesses in Nigeria.
In a statement released on Monday, April 27, the group said the programme, which plans to reward 100 businesses with cash prizes, offers little impact in an economy where millions of small businesses are struggling to survive.
“For the millions of Nigerian entrepreneurs who will not be among the lucky hundred, it is precisely what this Alliance has described it as — a kalokalo, a lottery,” the group said.
The scheme, announced by the Presidency as part of the 2026 National MSME Awards, will see over ₦1 billion distributed to selected businesses. But the group argued that the initiative is too small compared to the scale of the crisis in the sector.
It noted that small businesses account for nearly half of Nigeria’s economy and employ the majority of the workforce, but face a financing gap estimated at ₦13 trillion by the Central Bank of Nigeria (CBN).
“Against this backdrop, a one billion naira award programme… is not a policy. It is a photo opportunity,” it stated.
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According to the group, what businesses need is not a competition for grants but consistent economic policies that make it easier to operate and grow.
“What Nigerian SMEs need is not a lottery. They need stable, predictable, and business-friendly policies,” it said, adding that access to affordable loans, stable exchange rates, and reliable power are more critical than one-off cash rewards.
Beyond the size of the fund, the group also raised concerns about how the programme is being managed, warning that the growing trend of presidential advisers running major government initiatives is weakening established institutions.
“The MSME Awards programme is not an isolated anomaly,” the group said, noting that several initiatives are being driven from advisory offices rather than ministries and agencies legally set up to handle such responsibilities.
It argued that this approach creates accountability gaps and undermines existing institutions, which are meant to manage public programmes and funds.
“A Special Adviser has no legal standing to execute government policy,” the group stated, warning that such arrangements could lead to inefficiency and poor oversight.
The organisation called on the government to redirect its focus from short-term grant schemes to long-term structural reforms that can support businesses at scale.
It urged authorities to strengthen key institutions, expand access to credit, and ensure that policies are stable and consistent.
“The one billion naira MSME Awards programme, however well-intentioned, does not address the structural challenges facing Nigerian SMEs,” the group, adding that “It is a palliative, not a cure.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X