NATIONAL POLICY ON MSMEs

What Is This Policy?

The National Policy on MSMEs is Nigeria's primary strategy for developing the micro, small and medium enterprise sector, which contributes approximately 48% of GDP and employs over 84% of the workforce. The 2021 to 2025 edition focuses on financial access, formalisation, technology adoption, and market linkages to help Nigerian businesses grow and compete globally.

Who Does It Target?

Micro enterprises (fewer than 10 employees and assets below N5 million) across all sectors Small enterprises (10 to 49 employees, assets N5 million to N50 million) in trade, manufacturing, and services Medium enterprises (50 to 199 employees, assets N50 million to N500 million) seeking scale-up support Women entrepreneurs and youth-owned businesses requiring targeted access-to-finance interventions Informal sector operators who need support to formalise and access government programmes

What Does It Aim to Achieve?

Increase MSMEs' share of formal GDP and grow the sector's contribution to manufactured exports Reduce the financial access gap by creating a National MSME Funding Portal and expanding microfinance reach Formalise informal enterprises, bringing them under regulatory protection and enabling access to contracts, credit, and markets Foster new enterprise creation with priority on women, youth, and agrifood value chain businesses

Key Features

National MSME Funding Portal: Centralised platform showing all available funding schemes, eligibility criteria, and application processes for Nigerian MSMEs Finance Access Strategies: CBN intervention windows including MSMEDF, AGSMEIS, NYIF, and CIFI providing low-interest funding to qualifying enterprises Institutional Coordination: SMEDAN coordinates all federal MSME agencies and links with state and LGA councils on MSMEs for sub-national delivery AfCFTA Linkage: Policy aligns MSME development with Nigeria's AfCFTA obligations, preparing businesses for continental market access Women and Youth Priority: Women in Self-Employment Programme (WISE-P) and youth entrepreneurship initiatives embedded in implementation plans Technology and R&D: Promotes technology adoption, digital tools, and business incubation to improve MSME productivity and export competitiveness

Current Status

Rollout Stage: Active, 2021 to 2025 implementation period; monitored through SMEDAN annual performance reviews Implementing Body: SMEDAN (lead); FMITI; CAC; CBN; BOI; NAFDAC; SON; State Governments Scale: Approximately 39.65 million MSME units as of 2020, employing 59.7 million people across 13 sectors Funding: FGN budget, CBN intervention funds, NYIF, BOI facilities, and IFC/World Bank SME financing programmes

How to Access

Register Your Business: Register at the Corporate Affairs Commission (CAC) at cacnigeria.org to formalise and access government schemes Access Funding: Visit SMEDAN's funding portal at smedan.gov.ng or apply directly to CBN, BOI, or microfinance banks for sector-specific facilities Training and BDS: Enrol in SMEDAN's Business Development Services (BDS) training programmes and incubation centres across all states Contact: SMEDAN: smedan.gov.ng | FMITI: fmiti.gov.ng | BOI: boi.ng

Impact & Metrics

MSMEs contribute approximately 48% of Nigeria's GDP and account for 96% of all business enterprises in the country The sector employs 59.7 million Nigerians, representing 84% of the total employed labour force

Official Resources

Website: smedan.gov.ng | fmiti.gov.ng | cbn.gov.ng Contact: SMEDAN, Plot 256, Herbert Macaulay Way, Central Business District, Abuja | [email protected] Policy Summary | Source: SMEDAN, FMITI, CBN MSME Frameworks, MSU Food Security Group Review 2023, NBS MSME Survey | February 2026

Legal Framework

The National Policy on MSMEs operates under the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Act 2003, the Companies and Allied Matters Act 2020, and the Industrial Development (Income Tax Relief) Act. It aligns with the National Industrial Revolution Plan, the Finance Act 2020 on MSME tax relief, the Nigerian Startup Act 2022, and the ECOWAS SME Policy Framework for the development of small enterprises in West Africa.