Stakeholders Plan Improved Access To Finance For Agri-MSMEs

Stakeholders in Nigeria’s agricultural sector have reaffirmed their commitment to improving access to finance and Business Development Services (BDS) for micro, small, and medium enterprises (MSMEs), with a focus on unlocking growth for agribusinesses across the country.

The pledge was made during a joint stakeholders’ awareness engagement held in Abuja, themed “Collaboration Strategies for Agri-SMEs Growth: Focus on BDS and Financing.”

The event was organised by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in collaboration with the Kaduna Business School (KBS) and the Enterprise Development Centre (EDC), with support from the Alliance for a Green Revolution in Africa (AGRA).

Speaking at the event, head of enterprise development and promotion at SMEDAN, Mr. Ado Bello, who represented the director-general, emphasised the pressing need to empower business development service providers (BDSPs) and close the persistent financing gap facing Agri-MSMEs.

“Despite the availability of financing institutions, many small businesses still struggle to access credit. This initiative, supported by AGRA, is designed to make BDS more affordable and effective, thereby unlocking much-needed capital for MSMEs,” Bello said.

He noted that while SMEDAN and its partners have worked over the years to develop a robust BDS ecosystem, the high cost of services often limits access for rural businesses and agripreneurs.

The current initiative aims to address this by delivering subsidized and targeted support, particularly to underserved groups, he said.

Bello stressed MSMEs’ crucial role in achieving national food security, citing smallholder farmers and agribusinesses as central to Nigeria’s agricultural production.

He urged financial institutions present to share the challenges SMEs face when seeking funding and called for simplified lending criteria that better align with the realities of small businesses.

For his part, AGRA programme officer, Mr. Godswill Aguiyi, highlighted the importance of the partnership with SMEDAN, KBS, and EDC in addressing the barriers that limit financing for Agri-SMEs—particularly poor financial documentation, lack of formal registration, and limited financial literacy.

“Agriculture in Nigeria is largely driven by smallholders, yet many can’t access credit because they lack the proper records and documentation required by banks,” he said.

He noted that the programme will connect SMEs with existing financing windows at institutions such as the Bank of Industry, Bank of Agriculture, and the National Agricultural Development Fund (NADF).

The initiative is initially focused on Kaduna, Niger, and Nasarawa states, with plans to generate broader national impact through expanded market linkages and knowledge sharing.

Also speaking, assistant director at SMEDAN’s enterprise development and promotion department, Dr. Funto Babarinde, stated that the programme targets at least 1,000 MSMEs, with a special focus on youth and women-led agribusinesses.

“This goes beyond poverty alleviation. We are working towards sustainable food systems, the growth of SMEs, and long-term contributions to Nigeria’s GDP. By the end of this programme, we expect to see better-structured agribusinesses with enhanced access to finance and growth opportunities,” she said.