SMEDAN Raises Alarm as Nigerian Businesses Refuse to Apply for Support Funds
- SMEDAN says many Nigerian businesses are not applying for available funds
- Over N200 billion has been released in grants for MSMEs in recent years
- The agency explains the reasons for the low number of applications for the funds
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Small and Medium Enterprises Development Agency of Nigeria has reaffirmed the federal government’s commitment to supporting businesses, while expressing concern over the low participation of entrepreneurs in available intervention programmes.
The Director-General of SMEDAN, Charles Odii, made this known during a working visit to Falcon Chemicals Ltd in Ogun State, where he assessed the company’s operations, MSMEAfrica reported.
Source: Getty Images
Government support for MSMEs
Odii explained that the visit forms part of the agency’s ongoing efforts to engage businesses directly and help them scale up productivity.
He noted that under the administration of Bola Tinubu, investments have been made in infrastructure, such as road networks and port expansion, to improve the business climate.
According to him, more than N200 billion has also been disbursed in recent years as grants to support nano, small, and medium enterprises across the country.
Low participation raises concern
Despite these interventions, Odii said many business owners are not taking advantage of available opportunities.
He attributed this trend to a lack of trust in government programmes, noting that some entrepreneurs are reluctant to engage, while even beneficiaries often hesitate to publicly share their experiences.
“There are funds available, but people are not accessing them,” he said, stressing the need to rebuild confidence in the system.
Registration key to accessing support
The SMEDAN boss emphasised that proper registration with the agency is required for businesses to benefit from its programmes.
He added that registered enterprises are positioned to access funding, training, and other forms of support designed to enhance growth.
Odii also disclosed that SMEDAN is working to strengthen collaboration between business owners and security agencies to ensure safer operating environments for enterprises.
Source: Getty Images
Company highlights expansion plans
Responding, the Managing Director of Falcon Chemicals Ltd, Babatunde Adefarati, described the visit as a positive development for the company.
He revealed that about 70% of the firm’s raw materials are currently imported and that a significant portion of its production capacity remains untapped.
Adefarati added that the company is planning an expansion aimed at increasing local production and exploring export opportunities.
FG opens YEIDEP portal offering N500,000 grant to youths
Legit.ng earlier reported that the federal government has officially commenced recruitment for Batch B of the Youth Economic Intervention and Deradicalisation Programme (YEIDEP), offering eligible Nigerian youths access to grants of up to N500,000.
The initiative, which began nationwide on March 9, 2026, is part of a broader strategy to tackle unemployment, encourage entrepreneurship, and support economic inclusion.
Designed as a youth-focused empowerment scheme, YEIDEP aims to provide startup capital and financial access to millions of young Nigerians, helping them build sustainable businesses and reduce reliance on limited job opportunities.
Source: Legit.ng
