Low MSMEs participation in support programmes worrisome — SMEDAN
The Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, has expressed concern over the low participation of Micro, Small and Medium Enterprises, MSMEs, in available government support programmes, despite huge interventions aimed at boosting business growth.
Director General of SMEDAN, Mr. Charles Odii, raised the concern during a working visit to Falcon Chemicals Ltd in Ogun State, where he conducted a fact-finding assessment of the company’s operations.
Odii said the visit formed part of the agency’s ongoing efforts to deepen engagement with enterprises and support their transition to higher levels of productivity.
He reiterated the Federal Government’s commitment to creating an enabling environment for businesses under the administration of Bola Ahmed Tinubu, noting that key investments have been made in infrastructure, such as road construction and port expansion, to ease the cost of doing business.
According to him, over N200 billion has been disbursed in recent years as grants to support nano, small and medium-scale businesses across the country.
Despite the interventions, Odii lamented that many entrepreneurs are not taking advantage of the opportunities due to distrust in government programmes.
He said: “People lack faith and trust in the system. There are funds available for businesses, but people do not come to access them.”
Odii further noted that even beneficiaries of such interventions are often reluctant to publicly share their experiences, thereby worsening scepticism among other business owners.
He explained that registration with the Small and Medium Enterprises Development Agency of Nigeria remains a major requirement for accessing the available support packages, adding that once businesses are properly registered, they become eligible for multiple forms of assistance.
On security, the SMEDAN boss said the agency is strengthening collaboration between business owners and security agencies to ensure safer operating environments for enterprises.
Speaking during the visit, Managing Director of Falcon Chemicals Ltd, Mr. Babatunde Adefarati, described the agency’s visit as encouraging, saying the company still has significant untapped production capacity.
He disclosed that about 70 per cent of the company’s raw materials are currently imported, reflecting the challenges of local sourcing in the manufacturing sector.
Adefarati added that only a small portion of the firm’s full production potential has been explored, but plans are underway for expansion to meet growing local demand and eventually penetrate export markets.
The development underscores ongoing efforts by the government to strengthen Nigeria’s MSME ecosystem, while highlighting the need to build trust, improve awareness and encourage wider participation in intervention programmes designed to drive business growth and economic development.