HomeBusinessKatsina State Invests N1 Billion in Small Businesses with SMEDAN’s Support

Katsina State Invests N1 Billion in Small Businesses with SMEDAN’s Support

Published on

Small businesses in Katsina State are set to benefit from a N1 billion matching fund provided by the state government in partnership with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). The fund, which will be disbursed at a single-digit interest rate, is aimed at boosting the growth and competitiveness of SMEs in the state.

The agreement was signed on Thursday at SMEDAN’s headquarters in Abuja, during the visit of Katsina State Governor, Dr Dikko Umaru Radda, to SMEDAN Director-General, Charles Odii. The fund will kick off this quarter with an initial injection of N250 million from the state government.

According to Odii, the fund is part of SMEDAN’s efforts to facilitate access to finance for SMEs nationwide. He said the agency had signed similar agreements with Anambra and Enugu states and was working to replicate the initiative in other states. He expressed gratitude to Radda, who served as the DG of SMEDAN for six years before becoming governor, for his continuous commitment to the agency’s mission.

Odii noted that SMEs are the bedrock of the country’s economy, and have the potential to drive lasting growth and prosperity. He said SMEDAN’s mission is to create an enabling ecosystem for SMEs to thrive, offering ready access to finance, streamlined market entry, and regulatory support. He also highlighted the importance of SMEs to national growth and their central role in President Bola Tinubu’s economic agenda.

Radda, on his part, emphasized the efforts of the Katsina State SME Development Agency and stressed the need for collaboration to harness the contributions of SMEs in job creation and economic revitalization. He said the state government is committed to supporting SMEs with the necessary infrastructure, policies, and incentives to succeed.

The fund is expected to boost the productivity, innovation, and competitiveness of SMEs in Katsina State, which is one of the largest states in Nigeria by land area and population. The state is known for its agricultural and mineral resources, as well as its rich cultural heritage. However, it also faces challenges such as poverty, insecurity, and unemployment, which SMEs can help to address.

The fund is also in line with the federal government’s vision to promote SME development as a key driver of economic diversification, industrialization, and inclusive growth. According to the National Bureau of Statistics, SMEs account for about 96% of businesses and 84% of employment in Nigeria. However, they also face challenges such as access to finance, infrastructure, skills, and markets, which limit their growth and competitiveness.

SMEDAN is the apex agency responsible for the development and promotion of SMEs in Nigeria. It was established in 2003 by an act of the National Assembly to facilitate the access of SMEs to local and international markets, finance, technology, and best practices. It also provides policy advice, advocacy, and support services to SMEs and stakeholders.

The matching fund agreement with Katsina State is one of the several initiatives that SMEDAN has embarked on to fulfill its mandate. Some of the other initiatives include the internship program, the conditional grant scheme, the business development service providers, and the one local government one product program.

With these initiatives, SMEDAN hopes to empower SMEs to overcome their challenges and seize opportunities in the local and global markets. By doing so, the agency also hopes to contribute to the achievement of the Sustainable Development Goals and the African Union Agenda 2063, which aim to end poverty, promote prosperity, and ensure peace and security in Africa.

Source: Business Day

 

Latest articles

Senate Increases Windfall Tax on Banks to 70%

Nigerian Senate raises windfall tax on banks' foreign exchange gains to 70%, targeting redistribution of government-driven profits.

Government Urges Patience Amid Protests, Pledges to Address Economic Issues

The Nigerian government appeals for patience and dialogue as nationwide protests loom, pledging to address the economic issues causing public discontent.

Dangote Refinery Set to Disrupt 90 European Refineries

The Dangote Refinery, with its capacity to produce 650,000 barrels per day, threatens to disrupt 90 European refineries and shift global oil market dynamics

FG Pleads for Patience Amid Nationwide Protest Plans

The Federal Government appeals for patience and postponement of the planned nationwide protest, citing ongoing efforts to address economic hardships.

More like this

Senate Increases Windfall Tax on Banks to 70%

Nigerian Senate raises windfall tax on banks' foreign exchange gains to 70%, targeting redistribution of government-driven profits.

Government Urges Patience Amid Protests, Pledges to Address Economic Issues

The Nigerian government appeals for patience and dialogue as nationwide protests loom, pledging to address the economic issues causing public discontent.

Dangote Refinery Set to Disrupt 90 European Refineries

The Dangote Refinery, with its capacity to produce 650,000 barrels per day, threatens to disrupt 90 European refineries and shift global oil market dynamics