The funds, according to the agency, have helped create more than 100,000 jobs across different sectors, part of its strategy to revive the country’s economy through grassroots enterprise.

In an exclusive conversation with NAN, the Director-General of SMEDAN, Charles Odii, laid bare the scale of the agency’s operations. SMEDAN has gone beyond access to money, combining finance, equipment, and regulatory support to expand the capacity of Nigeria’s SME sector.

“We have mobilised over ₦11 billion to make financing more affordable for small businesses and helped create more than 100,000 new jobs across the country,” Odii said.

This achievement, he noted, is tied to the Tinubu administration’s Renewed Hope Agenda. But while the political umbrella gives the initiative a national face, the on-ground execution has been anything but cosmetic. 

SMEDAN has been working with the National Assembly and foreign partners such as the United Nations Development Programme (UNDP), Google, and GIZ to offer practical support, particularly in the areas of digitisation and technical capacity building.

In parallel, SMEDAN has reactivated previously dormant Industrial Development Centres (IDCs), including facilities in Abuja, Osun, and Katsina. 

These hubs are now functional again, providing small businesses with reliable power, access to modern machinery, and hands-on operational support. It’s a big change from the past when small businesses were expected to grow without infrastructure.

Odii explained, “As part of efforts to revitalise local production, SMEDAN has also restored operations at several Industrial Development Centres, including those in Abuja, Osun, and Katsina States, where small businesses now benefit from access to modern machinery, steady power supply, and enterprise support.”

He stressed that SMEDAN’s collaboration with regulatory agencies, Corporate Affairs Commission (CAC), NAFDAC, Standards Organisation of Nigeria (SON), and the Federal Inland Revenue Service (FIRS), is helping businesses formalise without the traditional bottlenecks.

“Formalisation remains a key focus. SMEDAN has partnered with key regulatory agencies to ease the business environment,” he said.

That includes support for business registration, tax compliance, and access to standards and quality certification, barriers that previously limited many small business owners to informal trading.

Odii also pointed to youth-focused initiatives. SMEDAN is currently working with the National Youth Service Corps (NYSC) to convert bright ideas into viable businesses. The approach was to identify talent early, offer tools, and back them with business education and resources.

“This is what the Renewed Hope Agenda looks like in action; real support, real results, and a growing ecosystem where Nigerian businesses can thrive,” he stated.

An example is the SMEDAN Garment and Textile Hub in Abuja’s Idu Industrial Development Centre. Powered by solar and supported by the UNDP, the centre gives fashion entrepreneurs access to affordable machinery and consistent electricity, helping them scale up their operations.

“The solar-powered hub, made possible through a partnership with the UNDP, enables fashion entrepreneurs to access affordable industrial machines and stable power supply, thereby increasing productivity and job creation,” Odii explained.

Beyond hubs and partnerships, SMEDAN is pushing the “GROW Nigerian” strategy, an acronym for Guidance, Resources, Opportunities, and Workforce support. It’s designed to boost job creation and also deepen resilience within communities by anchoring local economies around empowered SMEs.

“The result is more jobs, stronger businesses, and greater value unlocked within communities nationwide.”

Not letting inflation, high costs, and policy shocks limit its goals, SMEDAN is building the foundation of a more stable and inclusive economy.

“We are more of a hybrid—looking at SMEs with growth potential, not necessarily VC-scale, but with unmet demand that can leverage funding and technical assistance to grow,” Ahmad explained, setting Sabou apart from firms focusing solely on high-growth startups.

The fund plans to invest between $350,000 and $500,000 in 25 SMEs across sectors such as agriculture, renewable energy, logistics, and mobility. The goal is to bridge the funding gap faced by late-stage pre-seed to Series A SMEs that are primed for growth but lack structured financial support.

The name “Sabou,” inspired by the Hausa word “Sabo,” meaning rebirth or renaissance, reflects the fund’s aim to revitalise African businesses with strong growth potential. Sabou Capital takes a unique approach, investing in companies that utilise technology to optimise operations rather than those that are purely tech-driven, distinguishing it from traditional venture capital firms.

Sabou aims for a 2-3x return on investment, a more modest goal than the high-risk 10x returns typically sought by traditional venture capital. This strategy places Sabou Capital as a micro-private equity firm, competing with established organisations like Aruwa Capital and Catalyst Fund.

Ahmad’s decision to launch Sabou came after differences in vision at Aduna Capital. Speaking on this, he said, “Our team was well aligned on the ‘what’ and the ‘why,’ which many co-founders consider the most crucial, while little focus was given to the ‘how.’” He further noted, “This was a learning point for me as I discovered that even the scale of impact one wants to make differs from person to person.”

A key feature of Sabou’s strategy is its gender-lens investment approach, prioritising women entrepreneurs. Ahmad highlighted the financial advantages of investing in women-led businesses: “For every dollar invested in a woman, the return is 2x,” he said. 

Recognising the limitations women face in securing funding, he shared his own experience, stating, “It wasn’t possible for me at the time to travel to Lagos for fundraising. I ended up raising from a family office in Northern Nigeria, which ultimately led to selling my company before we were ready.”

In addition to funding, Sabou Capital offers technical assistance to ensure its portfolio companies are investment-ready, focusing on corporate governance, financial management, and operational systems. “We provide support to make sure these businesses are investment-ready,” Ahmad emphasised.

Sabou is expanding beyond Nigeria, with plans to invest in Senegal and Côte d’Ivoire, economies with projected growth rates above 6% and currencies pegged to the Euro. Ahmad explained the decision to diversify: “As Nigeria grapples with high inflation, currency devaluation, and slower growth, we decided to leverage the expertise of the founding team to diversify our risk.”

The firm’s recent addition, Christian Amouo, a private equity expert with a strong background in Francophone markets, will play a huge role in driving Sabou’s expansion. Amouo previously launched his fund in Cameroon, investing in four companies, three of which are still operational.

Sabou Capital has yet to begin formal fundraising but has already identified 20 startups in its pipeline. The fund plans to shortlist two to three companies for its first round of investments, with plans to scale across West and Central Africa. 

“The goal is to scale this model across West and Central Africa,” Ahmad said, outlining the fund’s long-term vision to help SMEs grow into large enterprises, ultimately attracting investments from larger private equity firms or strategic buyers.