The Small and Medium Enterprises Development Agency of Nigeria has secured a $12 million funding commitment from the South Korean Government to establish a modern Skills Acquisition Centre in Abuja, in a move aimed at boosting entrepreneurship, reducing unemployment and strengthening the country’s Micro, Small and Medium Enterprises sector.
The Director General and Chief Executive Officer of SMEDAN, Charles Odii, announced the development in a statement on Sunday to commemorate the 2026 World MSME Day, themed Empowering MSMEs through Innovation and Sustainable Industrial Development.
Odii said the proposed facility would provide vocational and entrepreneurial training for thousands of young Nigerians while enhancing the productivity of MSMEs nationwide.
He disclosed that the agency is awaiting land allocation from the Federal Capital Territory Administration before work on the project can begin.
According to him, SMEDAN is determined to ensure Nigeria benefits fully from the opportunity provided by the South Korean Government.
“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,” he said.
Odii said the agency’s programmes are focused on supporting small businesses, which he described as critical to Nigeria’s economic development.
“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 stated.
Alongside the announcement of the South Korean support, SMEDAN unveiled a ₦500 million zero interest Grow Fund designed to improve access to affordable financing for Micro, Small and Medium Enterprises.
Odii explained that the fund would be administered through cooperative societies, trade associations and business membership organisations under a revolving loan model.
He said the association based approach was chosen to improve accountability, strengthen monitoring and ensure the loans reach genuine business owners.
“We visited traders at the market because it is not enough to sit in offices and formulate policies without understanding the realities of the people we are meant to serve.
“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. We are not giving the money directly to individuals. We are giving it to associations that know their members and can monitor how the funds are used,” he said.
According to Odii, beneficiaries can use the loans to expand working capital, rent business premises, acquire equipment and meet other productive business needs.
“The funding is meant to support and improve businesses. It should be used for working capital, workspaces, tools and other productive business needs. Any use outside these objectives will not be encouraged.
“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 added.
The SMEDAN chief also said the initial ₦500 million fund would be expanded through partnerships with state governments, development organisations and financial institutions willing to provide matching funds.
He further disclosed that the agency has begun another round of consultations on the National MSME Policy, which is scheduled to be relaunched in November.
