The Small and Medium Enterprises Development Agency of Nigeria has secured a $12m funding commitment from the South Korean Government to establish a world-class Skills Acquisition Centre in Abuja as part of efforts to boost entrepreneurship, reduce unemployment and strengthen Nigeria’s Micro, Small and Medium Enterprises.
The Director-General and Chief Executive Officer of SMEDAN, Charles Odii, announced the development in a statement issued on Sunday to commemorate the 2026 World MSME Day, themed “Empowering MSMEs through Innovation and Sustainable Industrial Development.”
According to Odii, the proposed centre will provide vocational and entrepreneurial training to thousands of young Nigerians while enhancing the productivity and competitiveness of MSMEs nationwide.
He disclosed that the agency is awaiting land allocation from the Federal Capital Territory Administration before construction can begin.
“We need land in the FCT to build the Skills Acquisition Centre. If the FCT Administration is unable to provide one, we will use our office premises in Idu, Abuja, because we do not want Nigeria to miss this $12m commitment and opportunity offered by the Korean Government to support skills and vocational training,” Odii said.
He described small businesses as the backbone of Nigeria’s economy, noting that SMEDAN’s interventions are designed to create an enabling environment for entrepreneurs to thrive.
“Small businesses are the heartbeat of Nigeria’s economy. They contribute significantly to employment generation and economic growth. By providing infrastructure, skills and financing, we are creating an enabling environment for them to grow, thrive and contribute meaningfully to national development,” he added.
Alongside the South Korean-backed project, SMEDAN unveiled a N500m zero-interest Grow Fund to improve access to affordable financing for MSMEs.
Odii said the fund would be disbursed through cooperative societies, trade associations and business membership organisations under a revolving loan arrangement, a model designed to promote accountability, strengthen monitoring and ensure the funds reach genuine entrepreneurs.
He said the initiative was conceived after the agency engaged directly with traders in various markets.
“We met with butchers, pepper sellers, vegetable traders, provision store owners and market leaders, and they all said one thing: they need access to affordable finance. That was why we immediately decided to launch the N500m Grow Fund,” he said.
Odii explained that the loans would attract no interest and could be used for productive business purposes, including expanding working capital, renting business premises and purchasing equipment.
“If an association gets N10m, its members can borrow as little as N250,000 or as much as N500,000, depending on their needs. They will repay exactly what they borrowed because this is a zero-interest loan.
“It is a revolving fund. When one beneficiary repays, another entrepreneur can access the same money. This way, the impact of the intervention continues to expand and more small businesses can benefit,” he said.
He added that the initial N500m fund would be expanded through partnerships with state governments, development partners and financial institutions willing to provide matching funds.
The SMEDAN boss also disclosed that the agency had begun another round of consultations on the National MSME Policy, which is expected to be relaunched in November.
