Entrepreneurship is the process of discovering gaps and business opportunities in one’s immediate surroundings, bringing together the necessary resources in an inventive way to fill those gaps, incurring the risks involved, and obtaining personal rewards in the process.
As a Nigerian entrepreneur, you may be curious about the government institutions responsible for building a business-friendly atmosphere, the benefits of these organizations, and, most importantly, how they may help your firm grow.
Why It Is Important You Know Agencies That Support Businesses In Nigeria
Because information is a true source of entrepreneurship development, entrepreneurs must be reminded of the basic functional areas of their businesses on a regular basis in order to stay current and be efficient and successful managers. The following are some public and private organizations that have been established to improve the performance of Nigerian entrepreneurs.
Nigerian Government Agencies that Support Entrepreneurship
These are the government agencies in Nigeria that foster a business-friendly climate for entrepreneurs, SMEs, and startups.
1. Central Bank of Nigeria (CBN)
The Central Bank of Nigeria (CBN) encourages entrepreneurship in Nigeria by enacting policies that facilitate access to credit and providing targeted assistance to SMEs and entrepreneurs. The CBN strives to improve financial inclusion, provide affordable financing, and support the growth of SMEs through initiatives such as the Entrepreneurship Development Centers (EDCs) and the Anchor Borrowers’ Program in collaboration with SMEDAN.
The CBN provides development financing through programs such as:
- Micro, Small and Medium Enterprises Development Fund (MSMEDF)
- Sabi Money, Agricultural Credit Guarantee Scheme Fund (ACGSF)
- Small and Medium Enterprises Equity Investment Scheme (SMEEIS)
- Youth Entrepreneurship Development Programme(YEDP)
2. Development Bank of Nigeria (DBN)
The Development Bank of Nigeria promotes entrepreneurship by providing lending facilities and training to entrepreneurs in order to ease financing restrictions experienced by Micro, Small, and Medium Scale Enterprises (MSMEs) in Nigeria.
The DBN offers a variety of programs, including the DBN Entrepreneurship Training Programme and DBN Loans.
3. Raw Materials Research and Development Council (RMRDC)
The Raw Materials Research and Development Council (RMRDC) was established with the mission of promoting the development and utilization of industrial raw materials in Nigeria. It is the focal point for the nation’s huge industrial raw resources development and utilization. The council is also intended to encourage industries to use local raw materials instead of imported ones.
4. Bank of Industry (BOI)
In Nigeria, the Bank of Industry (BOI) plays an important role in supporting businesses by providing financial assistance to various sectors of the economy. BOI, Nigeria’s major development finance institution, promotes industrialisation and economic growth by providing a variety of financial goods and services to entrepreneurs, startups, and existing firms, such as loans, equity funding, and guarantees.
The Bank of Industry (BOI) in Nigeria provides a variety of lending programs and financial aid alternatives to small and medium-sized firms (SMEs) and startups.
5. National Poverty Eradication Programme (NAPEP)
The federal government established the National Poverty Eradication Programme (NAPEP) in 2001 with the goal of reducing poverty in the country. It coordinates and oversees several other organizations, including ministries, and develops poverty-reduction programs and recommendations for them to follow. NAPEP’s objectives include training teenagers in vocational trades, supporting internships and microcredit, and creating jobs in the automobile industry.
6. Nigerian Export-Import Bank (NEXIM)
Nigerian exporters can obtain short and medium-term loans from the Nigerian Export-Import Bank (NEXIM). It also provides short-term guarantees for loans made to exporters by Nigerian banks, as well as credit insurance against political and commercial risks if overseas customers fail to pay.
Among its programs for Nigerian exporters and enterprises are the following:
- Small and Medium Enterprise Export Facility (SMEEF)
- the Women and Youth Export Facility
- Nigerian Content Development and Monitoring Board fund
- Nigerian Creative Arts & Entertainment Industry Loans
- Nigeria-Africa Trade and Investment Promotion Programme
- Export Credit Insurance Facility
- Export Credit Guarantee Facility
- Direct Lending Facility
- Foreign Input Facility and Local Input Facility
7. Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) was founded to encourage the growth of the country’s micro, small, and medium enterprises (MSMEs). Its purpose is to allow access to all resources required for the development of micro, small, and medium entrepreneurs/investors. Its objective is to construct an organized and efficient micro, small, and medium enterprise sector in Nigeria that will promote long-term growth.
The functions of SMEDAN include: stimulating, monitoring, and coordinating the development of the MSMEs sector. Initiating and expressing policy concepts for the growth and development of micro, small, and medium-sized businesses; Promoting and enabling development programs, tools, and support services to help MSME operations improve and modernize; Serving as a leader in rural industrialization, poverty alleviation, and job development.
8. NIRSAL Microfinance Bank
The major purpose of NIRSAL Microfinance Bank is to create a viable route for the on-lending of special funds from the Central Bank of Nigeria to qualified Nigerian individuals, particularly Nigerian entrepreneurs. On-Balance-Sheet Lending (OBSL) for Entrepreneurs, SMEs, petty traders, and individuals is one of its programs, as is the Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS lending scheme) for Agropreneurs.
9. National Information Technology Development Agency (NITDA)
The National Information Technology Development Agency (NITDA) is crucial in encouraging tech entrepreneurship in Nigeria. The primary contribution of NITDA is to promote the growth and development of Nigeria’s information technology sector.
The following are some examples of training, capacity-building, and mentorship programs run by Nigeria’s National Information Technology Development Agency (NITDA):
- NITDA Academy
- NITDA Digital Skills Training
- Capacity Building programmes
- Digital Job creation centers
- E-learning facilities
- Scholarships
- Virtual Libraries
- Mentorship and Networking
- NITDA Information Technology Hubs
- NITDA iHatch Cohorts
- NITDA Tech Innovation and Entrepreneurship Support Scheme
These instances demonstrate NITDA’s dedication to delivering diversified training, capacity building, and mentorship opportunities to various parts of the tech ecosystem, hence contributing to the growth of Nigerian tech entrepreneurship.
10. Nigerian Export Promotion Council (NEPC)
The Nigerian Export Promotion Council (NEPC) was founded in 1976 to reduce bureaucratic bottlenecks and promote autonomy in dealing with organized private sector members. Its purpose and mission are to make Nigeria’s non-oil export sector a substantial contributor to the country’s GDP and to provide opportunities for exporters to support long-term economic development.
11. National Association of Small and Medium Enterprises (NASME)
The National Association of Small and Medium Enterprises (NASME) is a private sector organization comprised of small and medium-sized businesses. Its mission is to promote the performance of its member firms and operators through networking, capacity building, policy lobbying, and policy advocacy. It aims to improve its members’ well-being and to influence industrial policy. NAMSE analysis and publications on the business environment, competitive enlightenment, and policy formulation are beneficial to Nigerian entrepreneurs.
12. Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA)
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) is a non-profit organization of manufacturers, merchants, mines, farmers, financiers, industrialists, and trade associations that work together to promote, protect, and improve the business environment for micro and macro benefits.
13. Nigerian Investment Promotion Commission (NIPC)
The Nigerian Investment Promotion Commission (NIPC) is a Federal Government organization tasked with encouraging, promoting, and coordinating investments in Nigeria. NIPC encourages entrepreneurship in Nigeria by providing a welcoming environment for both domestic and foreign investors.
By providing incentives, assisting with business registration, and pushing for legislation that encourage entrepreneurial enterprises, NIPC hopes to attract investment, stimulate economic growth, and foster entrepreneurship.
14. Manufacturers Association of Nigeria (MAN)
Manufacturers Association of Nigeria (MAN) was founded in 1971 as a national industrial association to encourage the patronage of Nigerian-made products by Nigerians and foreigners; to encourage high standards of quality for member’s products through collation and advice; and to provide a forum for manufacturers to formulate and influence general industrial policy.
15. Corporate Affairs Commission (CAC)
In Nigeria, the Corporate Affairs Commission (CAC) plays an important role in promoting entrepreneurship by supervising the registration and regulation of MSMEs, firms, and corporate entities. It makes it easier for entrepreneurs to establish legal entities, get capital, and engage in authorized economic operations by facilitating the formalization of firms.
Through its regulatory functions, the CAC also encourages openness, accountability, and investor trust, all of which contribute to a more conducive climate for entrepreneurship to grow in Nigeria.