SMEDAN, UNDP sign MoU to support small businesses

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has signed a memorandum of understanding (MoU) with the United Nations Development Programme (UNDP) to support micro businesses.

The event, held on Thursday in Abuja, also witnessed the launch of a solar-powered garment-making centre to reduce business costs and promote clean energy for small and medium enterprises.

The centre is expected to provide SMEs with free access to modern garment-making equipment, eliminating the burden of power costs, machine purchases, and maintenance.

The facility is also said to be powered by 254 made-in-Nigeria solar panels, generating 240 kiloVoltAmpere (kVA) to ensure a sustainable and uninterrupted energy supply.

Speaking at the event, Charles Odii, director-general of SMEDAN, said MSMEs face economic challenges due to rising costs.

He said the initiative is designed to “alleviate these pressures” by offering SMEs a cost-effective space to operate and scale their businesses.

“Since President Bola Ahmed Tinubu came into power, some policies have increased the cost of doing business for small enterprises,” Odii said.  

“What we are doing today is reducing that cost. Small businesses can book a machine here, work for free, and not worry about power, machine purchases, or maintenance.”

Odii said the centre is part of a broader strategy to boost Nigeria’s industrial and employment sectors.

“The initiative has already been launched in Katsina and Osun States, with plans to replicate the model across all 36 states and the federal capital territory,” he said.

According to the SMEDAN DG, the facility also offers warehousing and distribution support.

He disclosed that the agency has secured partnerships with NIPOST and God Is Good Logistics, offering SMEs discounted distribution rates of 15 percent and 20 percent, respectively, to enable seamless delivery of finished products across Nigeria.

“The centre is equipped with 120 machines, each capable of employing at least five people, potentially creating around 700 direct and indirect jobs daily,” Odii said.

“The initiative has already demonstrated success, as seen in the case of one entrepreneur, Josephine, who was able to produce 7,000 garments and hire 280 workers to fulfil an order for primary healthcare centres across Nigeria.”

‘SMEs ARE BACKBONE OF NIGERIA’S ECONOMY’

Elsie Gyekyewaa Attafuah, resident representative of UNDP in Nigeria, said SMEs are the backbone of the nation’s economy.

Attafuah said initiatives like the centre would position Nigeria competitively within the African Continental Free Trade Area (AfCTA), a market of 1.4 billion people, with SMEs playing a critical role in expanding trade opportunities.

“Nigeria has 40 million micro, small, and medium-scale enterprises that contribute to GDP and job creation. By providing sustainable energy, we are enabling these businesses to thrive,” she said.

She also said UNDP is working on additional initiatives to support innovation and entrepreneurship in Nigeria.

On the partnership, Attafuah said it would contribute to improving innovation, sustainable manufacturing, trade, and the establishment of creative spaces to equip MSMEs with skills, boost competitiveness and unlock new opportunities in Nigeria.

In his remarks, Olawande Ayodele, minister of state for youth development, said the federal government is planning to launch more initiatives to improve the skills of young people.

“Soon, the President is going to launch the Nigeria Youth Academy, which is all about skills development and is open to the digital community. It will provide a working space that everybody can access,” he said.

“I want us to have our own version of Coursera that teaches us in our own language and equips us with skills in our own language. Everything will be open to the community.”

He also said the ministry is keen on supporting and empowering the youth