Dr. Olawale Fasanya, Director General of the Small and Medium Enterprises Development Agency (SMEDAN), announced that SMEDAN, in partnership with JAiz Bank, will initiate the disbursement of N1.2 billion in matching funds to Micro, Small, and Medium Enterprises (MSMEs) throughout the country.
During a press briefing, Fasanya highlighted the occasion as a commemoration of this year’s World MSME Day, focusing on the theme “Building a Stronger Future Together.”
Fasanya disclosed that SMEDAN currently possesses over N600 million in matching funds, with JAiz Bank contributing an additional N600 million, resulting in a total available fund of N1.2 billion.
He also mentioned that the agency plans to expand its efforts once it receives its allocation for the year.
The initial phase of the scheme began with individuals in the agricultural business, with future expansion planned for other sectors as soon as additional funds become available.
Fasanya explained the involvement of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) due to the inherent risks associated with agri-business.
Fasanya emphasized that the intervention aims to provide credit as a promotional tool to enhance enterprise output, competitiveness, and job creation. Prospective beneficiaries can access loans ranging from N500,000 to N2.5 million.
Addressing the impact of subsidy removal on MSMEs, Fasanya outlined SMEDAN’s efforts to mitigate the effects, including the procurement of state-of-the-art equipment and machines using the Common Facility Center model.
This initiative aims to reduce operating costs and enable MSMEs to compete not only in pricing but also in terms of quality. Currently, Common Facility Centers have been established in Abuja (Garment, Furniture, and Product Packaging), Katsina (Garment), Kaduna, and Nnewi (Automotive Component Production), as well as Ikorodu (Fast-Moving Consumer Goods Packaging).
Furthermore, Fasanya revealed plans to establish the SMEDAN investment company, which will oversee other agency operations in addition to its regular government subvention.
He also expressed anticipation for the operational license from the Central Bank of Nigeria, which will facilitate the launch of the SMEDAN microfinance bank, providing easier access to credit for MSMEs.
Fasanya mentioned that another MSME survey is scheduled for the following year, following the previous one conducted in 2020 during the COVID-19 pandemic.
Additionally, he shared that an MSME competitiveness survey has recently concluded, with SMEDAN soon to release the corresponding statistics
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