South Korea commits $12m to Nigeria’s MSME skills devt

The Small and Medium Enterprises Development Agency of Nigeria has secured a $12m commitment from the South Korean Government to establish a Skills Acquisition Centre in Abuja as part of efforts to deepen entrepreneurship, tackle unemployment, and strengthen Nigeria’s small business ecosystem.

The Director-General and Chief Executive Officer of SMEDAN, Charles Odii, disclosed this in a statement on Sunday to mark the 2026 World MSME Day, themed “Empowering MSMEs through Innovation and Sustainable Industrial Development.”

Odii said the proposed centre would provide vocational and entrepreneurial training to thousands of young Nigerians and improve the productive capacity of Micro, Small, and Medium Enterprises across the country.

He revealed that the agency was awaiting the allocation of land from the Federal Capital Territory Administration to commence the project. According to him, SMEDAN is determined not to allow Nigeria to lose the opportunity presented by the South Korean Government’s intervention.

“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.”

The SMEDAN boss said the agency’s interventions were driven by the need to empower small businesses, which remain the backbone of the Nigerian economy.

“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.

The announcement of the South Korean support came as SMEDAN unveiled a N500m zero-interest Grow Fund aimed at providing affordable financing for Micro, Small, and Medium Enterprises.

The fund, according to Odii, would be disbursed through cooperative societies, trade associations, and business membership organisations under a revolving loan arrangement.

He explained that the association-based lending model was designed to improve accountability, ensure proper monitoring, and guarantee that funds reach genuine entrepreneurs.

“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.

Odii explained that the loans would attract no interest and could be used for productive business activities, including increasing working capital, renting business spaces, and purchasing equipment.

“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 Director-General said the initial N500m fund would be expanded through partnerships with state governments, development partners, and financial institutions willing to provide matching funds.

He also disclosed that SMEDAN had commenced another round of consultations on the National MSME Policy, which is expected to be relaunched in November. According to him, the policy review is aimed at strengthening the contribution of small businesses to economic development.

He said, “We are in a period where we need to review our MSME policy. Once the President signs that policy, it will shape the MSME sector for the next five years. We are not making policies from our offices. We are going to the markets and engaging directly with business owners to understand their challenges and hear their recommendations.

“The policy reforms we are proposing include single-digit interest loans for small businesses, setting aside 30 per cent of government procurement opportunities for MSMEs, and removing age restrictions from intervention programmes.”

Odii said entrepreneurs trained by the agency would also receive vocational equipment to enable them to become self-reliant. “We have identified these tools as essential to the businesses of our trainees based on the skills programmes they have undergone. Some of them will receive washing machines, barbing kits, shoemaking tools, and sewing machines to start businesses immediately after training,” he said.

He called on state governments to collaborate with SMEDAN in establishing enterprise development centres and expanding skills acquisition programmes across the country.

According to him, stronger collaboration between the Federal Government and state governments is essential to creating jobs, reducing poverty, and positioning Nigerian businesses to take advantage of opportunities under the African Continental Free Trade Area.

The Senior Special Assistant to the President on Industrial Training and Manpower Development, Adamson Ayinde, commended the association-based lending model, saying it would improve monitoring and reduce the diversion of government support programmes.

The latest interventions come as Nigeria battles rising unemployment, weak access to finance, and a high mortality rate among small businesses.

According to SMEDAN and the National Bureau of Statistics, MSMEs account for nearly half of Nigeria’s Gross Domestic Product and employ millions of Nigerians, making the sector critical to the country’s economic diversification and inclusive growth agenda.