SMEDAN to Provide N250,000 to N5 Million Loans for 6,122 Entrepreneurs

In Nigeria’s small business space, the story is often the same. Many entrepreneurs have the skills, the ideas, and the determination to grow. What they lack is affordable funding. Without capital, expansion plans remain on paper, equipment cannot be purchased, and growth slows before it truly begins.

That is the gap the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is working to close.

Through its Inspire, Create, Start and Scale (ICSS) programme, SMEDAN plans to provide loans ranging from N250,000 to N5 million to 6,122 trained entrepreneurs across the country. The loans will come at single-digit interest rates, making them more accessible than most commercial financing options available to small businesses.

Turning Training into Real Business Growth

Over the years, many government and private programmes have focused on entrepreneurship training. While training builds knowledge and confidence, the real challenge comes afterward—when business owners need money to buy tools, expand production, or improve operations.

The ICSS programme was designed to bridge this gap. According to SMEDAN’s Director-General, Charles Odii, the initiative connects structured business training with practical access to finance. Participants are equipped with the technical, managerial, and financial skills that lenders look for, improving their chances of managing loans responsibly.

The funding can be used for essential business needs such as laptops, power solutions, production equipment, workspace upgrades, and other operational tools that support growth.

How the Programme Works

The financing structure is designed to support businesses at different stages.

Entrepreneurs in the early phase can access Start loans ranging from N250,000 to N2 million. Those ready to expand operations can apply for Scale loans between N1 million and N5 million.

The programme has already been implemented in several states, including Lagos, Kano, Edo, Enugu, Niger, and the Federal Capital Territory. The current pilot phase involves about 100 participants, with plans to extend support to thousands of trained entrepreneurs nationwide.

Development partners, financial institutions such as Jaiz Bank, and international agencies are working with SMEDAN to strengthen the loan facility and ensure wider reach. Special attention is also being given to women and young entrepreneurs, who often face the greatest barriers to accessing formal credit.

Why This Matters for Nigeria’s Economy

Micro, Small and Medium Enterprises (MSMEs) are the backbone of Nigeria’s economy. They create jobs, support local production, and drive innovation across sectors such as agriculture, manufacturing, technology, and the creative industry.

However, access to affordable finance remains one of the biggest obstacles to their survival and growth. Many small business owners rely on informal borrowing or high-interest loans, which limit expansion and increase financial pressure.

By combining training, mentorship, and low-interest funding, the ICSS programme reflects a more practical approach to enterprise development—one that focuses on sustainability rather than short-term support.

What People Are Asking

Who is eligible for the loans?
The loans are targeted at entrepreneurs who have completed SMEDAN’s ICSS training and meet the programme’s business readiness requirements.

What is the loan range?
Beneficiaries can access between N250,000 and N5 million, depending on the size and stage of their business.

Where is the programme available?
The initiative has started in selected states and Abuja, with plans to expand as more partners come on board.

An Expert Perspective

From a business development standpoint, the strength of this initiative lies in its structure. Funding alone rarely solves business challenges. But when entrepreneurs are trained, mentored, and prepared before receiving loans, the chances of repayment and long-term success improve significantly.

If properly managed and sustained, programmes like ICSS can strengthen Nigeria’s small business ecosystem, reduce business failure rates, and create more stable employment opportunities.

One Practical Takeaway

If you run a small business, start keeping clear financial records and a simple business plan. Opportunities like this often favour entrepreneurs who are organised, prepared, and able to show how the funds will be used to grow their business.