Renewed Hope Agenda: Tracking The Achievements Of SMEDAN

December 14, 2024

By DAVE BARO-THOMAS

In line with its founding act, SMED­AN nurtures the growth and sustainabil­ity of Small and Medium Enterprises (SMEs) in Nigeria. It drives growth and prosperity by supporting SMEs and con­tributes to job creation, poverty allevia­tion, rural industrial development, and overall economic advancement in Nige­ria. In the year under review, it has post­ed remarkable socio-economic bottom lines redefining the landscape of SMEs in the country. The new management of SMEDAN under the youthful but experi­enced Director General, Mr Charles Odii, connects with critical stakeholders and departs from previous low energies and uncoordinated policy framework bedev­iling this engine room of any modern economy.

For about two decades, the SME eco­system in Nigeria grappled with some challenges. These challenges include poor and limited financing options, un­mitigated cost of production, restricted market access and trade facilitation, regulatory and bureaucratic bottlenecks, and human capital deficiencies and in­competence among small business own­ers. SMEDAN has undertaken targeted interventions to address these issues, driving tangible improvements for small businesses.

Like a master craftsman, Charles Odii, a renowned author, entrepreneur­ship development expert, and small busi­ness advocate, leads impactful initiatives and takes the challenges head-on.

Given the critical need for accessible finance, SMEDAN collaborated with leading financial institutions to provide affordable loans to small businesses at single-digit interest rates, and this is par­ticularly significant given the Monetary Policy Rate (MPR) exceeding 30% as the Central Bank of Nigeria (CBN) tightens monetary policies to combat inflation. It made concrete efforts to alleviate the bur­den of high production costs by expand­ing access to common facility centres. These centres offer SMEs discounted use of critical infrastructure such as power and machinery, reducing operational costs and enhancing productivity.

The agency has empowered SMEs to leverage international trade agreements such as the African Continental Free Trade Area, AfCFTA, and the African Growth and Opportunity Act (AGOA) to guarantee market access and trade facilitation. The owners of these busi­nesses also received capacity-building programs in key areas such as packag­ing, branding, and adherence to export standards. Farmers, in particular, benefit from access to quality inputs and training on safe preservation methods to prevent rejection at export borders.

One of the biggest travesties to creat­ing a conducive operating business en­vironment in the country today is poor regulatory governance, but the advent of the present management at SMED­AN actively advocated for a more busi­ness-friendly regulatory environment. Notable achievements include raising the taxable income exemption threshold for SMEs from ₦25 million to ₦50 million, eliminating nuisance taxes through pro­posed tax reforms and facilitating part­nerships with private organizations like Google to address the workforce skills gap. These collaborations provide SMEs with training in digital skills and other critical competencies, enhancing their operational capabilities and competi­tiveness.

Despite these efforts, low awareness among SMEs remains a significant barrier. Many potential beneficiaries are unaware of the support of the gov­ernment to bridge this gap- the agency revamped its communication strategy by leveraging social media and establish­ing a strong presence on platforms where SMEs actively hibernate, engaging in­fluencers and communities, partnering with trusted voices to amplify messages, and directly engaging stakeholders to share information and gather feedback through town halls and surveys.

A critical analysis of the year under re­view shows Charles Odii-led SMEDAN touching base with the core rationale for establishing the agency. The Pan Atlantic and Covenant University-trained Direc­tor General, a mentor and coach of the United States Young African Leaders Initiative and Entrepreneurship, posted superlative performances.

Under his watch, over N11 billion in affordable finance to SMEs through coun­terpart funding partnership agreements with Sterling Bank, Bank of Industry, and governments of Enugu, Anam­bra, Katsina, Cross River, and Zamfara states, has been disbursed. This fund is available to small businesses in Nigeria at single-digit interest rate loans for the procurement of workspace, work equip­ment, and working capital. It solves the sore need of a lack of credit due to high lending rates, exacerbated by monetary tightening measures of the Central Bank to curb inflation.

The leadership of SMEDAN intro­duced the SMEDAN Pitch Competi­tion, enabling SMEs to access millions in grants while providing a platform to showcase their innovations, receive constructive feedback on their business plans, and assess the market viability of their products and services and through strategic interventions, including grants, empowerment programs, and enhanced financial access, he has spearheaded the growth of the SME ecosystem, resulting in the creation of over 32,000 direct and indirect jobs.

Within this very short period, the agency facilitated inter-governmental partnerships to strengthen agency ca­pacity and provide tailored solutions to SMEs in the critical areas of formaliza­tion data management, energy access, digital solutions, and logistics. These partnership agreements with key government agencies provide timely, efficient, and affordable access to oppor­tunities for small businesses – streamlin­ing operations and eradicating red tape and bureaucratic redundancies. The partnering agencies include the Rural Electrification Agency (REA), National Information Technology Development Agency (NITDA), Nigeria Data Protec­tion Commission (NDPC), and Nigerian Postal Service (NIPOST).

The partnership streak extended to the organized private sector collaborating with GIG Logistics, a reputable logistics provider in Nigeria, to offer discounted offers to small businesses- reducing the cost of business operations and expand­ing reach and sales opportunities. The agency further secured a partnership with the Enterprise Development Cen­ter, Pan Atlantic University, to train and mentor 10,000 women business owners for free, ensuring inclusion and maximi­zation of the opportunities that abound in the demographic. Worthy of note is the partnership with Mastercard to provide digital payment solutions, innovation, and technology spaces for small enter­prises.

With the astute guidance of the DG, the agency midwifed the GROW Nigerian strategy blueprint that provides a four-year roadmap for SME development in Nigeria. Endorsed by the President of Ni­geria and adopted by state governments for domestication, it seeks to provide Guidance, Resources, Opportunities, and Workforce Support to small businesses through a digital-enabled platform and strategically designed programs and interventions. Another strategic poli­cy intervention was the launch of the National Council on SMEs, chaired by Vice President, H.E. Senator Kashim Shettima, with SMEDAN serving as the Secretariat.

The Council has a membership of state governors and other relevant agencies responsible for regulating the MSME sector. SMEDAN advocates for small businesses, pushing reforms and recommending regulations for national adoption to create a business-enabling en­vironment for SME growth. Replicated in states, the agency offered a pathway for small businesses to engage and maintain regular interface with the government, ensuring that their policy and regulato­ry needs are easily communicated and quickly addressed.

The largest and most significant Na­tional MSME Conference in Nigeria host­ed thousands of small businesses and the most prominent and influential actors in the MSME ecosystem staged under the watch of the DG. It enabled meaningful interactions on regulations, policies, and processes affecting SMEs in production, market access, branding and marketing. It also featured masterclasses, pitch compe­titions, and spotlighting activities that in­creased the capacity of attending SMEs and resulted in joint policy recommendations.

Another milestone is mobilizing capital for the revamping and remodeling of Industrial Development Centers managed by SMEDAN in 23 states across the country that were dilapidated and un­able to meet the establishing objective of building local production potential, rais­ing technical capacity, spurring industri­alization, and supporting SMEs.

The list seems endless as space will fail to talk about the agency’s drive for accelerated BDSP certification and li­censing, ensuring that small businesses across the country receive expert-led sup­port at every stage of their business and partnership with the German Agency for International Cooperation (GIZ) for the adoption of the Inspire, Create, Start and Scale (ICSS) curriculum, which equips trainees with the knowledge and resourc­es to support entrepreneurs to conceive, establish and grow a business.

Through stringent internal culture re­forms and technology deployed to ensure transparency, compliance, and democra­tization of access and opportunities since his assumption as the CEO of SMEDAN, he has led impactful initiatives, resulting in the creation of jobs, establishing the Women and Youth Unit to ensure equi­table representation in all programs and the Climate and Green Energy Desk to support displaced businesses and pro­mote green energy solutions.

Charles Odii, an awardee for outstand­ing public service by a reputable and frontline media organization, is chang­ing the landscape of SMEs. There are approximately forty million micro and medium-scale businesses, and SMEDAN is driving sustainable and goal-oriented growth and development through pragmatic and well-articulat­ed policies.