TheCable

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) says it has secured a N1 billion funding agreement for small businesses in Katsina.

In a statement, the agency said the “matching funding pact” with the Katsina government will kick off in the first quarter of the year, with an initial disbursement of N250 million.

SMEDAN said the agreement was signed on Thursday at its headquarters in Abuja during a visit by Dikko Radda, governor of Katsina.

“The agreement marks another milestone in DG Odii’s ongoing efforts to facilitate financial access for SMEs nationwide,” the statement reads.

“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.”

The agency said a memorandum of understanding (MoU) was also signed between the agency and the state government to overhaul the industrial development centre (IDC) in Katsina state.

The goal, SMEDAN said, is to transform the IDC into an “impactful incubator” to provide SMEs with “discounted access to modern tools and essential infrastructure, including power”, in a bid to enhance local production quality and reduce operational costs.

Speaking at the event, Charles Odii, SMEDAN director general, expressed appreciation to Radda, who served as the DG of the agency for six years, for his continuous commitment and support to the agency.

While describing small businesses as the bedrock of the country’s economy, Odii said he and Radda have a shared vision to drive national prosperity through SME growth.

“The potential of SMEs in Nigeria to drive lasting growth and prosperity is undeniable,” he said.

“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.”

Radda harped on the importance of SMEs to national growth and their central role in President Bola Tinubu’s economic agenda.

He said Katsina is committed to SME development and collaboration with SMEDAN. 

He commended Odii for the creative approach and successes recorded within his first 100 days as the agency’s head, urging the staff of SMEDAN to support him.

SMEDAN also flagged off its ‘One Local Government, One Product (OLOP)’ initiative, aimed at empowering local cooperatives to stimulate production by supporting businesses, while leveraging the unique resource advantages of each local government.

The agency said select cooperatives in the agribusiness value chain were awarded funds — 70 percent of which are repayable loans — as part of the initiative’s rollout of the year.

Odii called for the prudent use of funds and prompt repayment, saying the programme can address Nigeria’s food inflation challenge and boost exports.