FG Allocates N11.7bn to Boost MSMEs in 2026

The Federal Government has earmarked ₦11.76 billion in 2026 to support Micro, Small, and Medium Enterprises (MSMEs) and industrial revitalisation, according to allocations in the Appropriations Bill.

An analysis of the capital budget for the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) shows that MSME-focused projects account for nearly half of the agency’s ₦26.87 billion capital vote.

Key allocations include ₦2.1 billion for the “Grow Nigeria for MSME Development” programme and ₦1.4 billion to revitalise Industrial Development Centres, converting them into shared Common Facility Centres to lower production costs for small manufacturers.

Logistics interventions feature prominently, with ₦3.5 billion set aside for project vehicles to strengthen programme monitoring and outreach nationwide.

On the policy front, ₦154 million will fund a review of the national MSME policy, while ₦119 million will support the creation of a Marketplace MSME Database to improve formalisation and access to finance.

Other allocations include ₦700 million for a National MSME Green and Renewable Energy Initiative, ₦1.05 billion for business skills development, and ₦350 million for the “One Local Government One Product” scheme to boost grassroots production. Inclusion-focused programmes will receive ₦69.9 million for women in self-employment and ₦29.7 million for skills training targeting displaced persons, inmates, and retirees.

SMEDAN also budgeted for financial literacy training, microfinance initiatives, and renewable energy projects in Cross River and Benue States.

Digital competitiveness will be supported through partnerships with global tech firms, alongside ₦17.5 million for export facilitation and ₦280 million for enterprise networking.

Stakeholders welcomed the allocations but urged stronger financial support. NASME Director-General Eke Ubiji said, “SMEDAN has been assisting our members, but not much in the area of access to funding. They should focus more on helping members secure finance.”

Minister of State for Industry John Enoh stressed the importance of reliable data and disciplined implementation.

“Data gaps undermine good intentions. The absence of reliable MSME data constrained planning, targeting, and evaluation, reinforcing the urgency of a national MSME census,” he said.