Everything You Need To Know About SMEDAN Registration in 2024

Building a business is a long, hard journey, which is why business owners need all the help and support they can get. Many support organizations that are focused on helping small business owners achieve success exist and being a part of them can provide immense benefits. In Nigeria, one of those such organizations is called SMEDAN.

In this article, we will examine what SMEDAN is, its history, processes and how you can benefit from being a member of this highly valuable organization.

What is SMEDAN? 

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is a program that was initiated in 2003 by the Nigerian Federal Government following the passing of the SMEDAN Act in the same year. The program was created to promote development in Nigeria’s micro, small and medium-sized businesses (MSMEs). The agency helps in developing and implementing policies to help MSMEs grow and also organizes capacity-building programs for business owners.

Perhaps, most importantly, SMEDAN also helps MSMEs access credit to keep their businesses running. Although SMEDAN doesn’t issue loans by itself, it helps to connect qualified businesses with willing lenders, both in the private and public sectors. This way, it acts as a valuable intermediary that helps link businesses with the capital they need to expand.

What Kind of Business Are Eligible for SMEDAN Registration?

Generally, all MSMEs are eligible for a SMEDAN loan through many of its initiatives. The main requirement is that you have a registered business, although unregistered entities can also still apply, provided they get registered at a later stage of their operation. 

For a proper breakdown of the MSME band, consider that in Nigeria, MSMEs are businesses with no more than 250 employees: 

• Micro enterprises have between 1 and 9 employees
• Small enterprises have between 10 and 49 employees
• Medium enterprises have between 50 and 250 employees

The sector or industry in which you operate doesn’t matter. As long as you meet these criteria, you’re in! 

If your application will be through a commercial bank, then in addition to the registration requirement, it’s always possible for the bank itself to have its own lending criteria. Fortunately, SMEDAN can help make you aware of any of the bank’s additional lending requirements.

Why Businesses Should Register With SMEDAN

If you run a business in Nigeria, then conducting a SMEDAN registration is definitely in your best interest. The program comes with several attractive benefits, including the following: 

• Additional Capital: Of course, the primary reason why you should get a SMEDAN loan is that it offers your business more money to grow and scale. Every MSME needs as much funding as it can help to overcome the initial challenges, and SMEDAN loans can offer that additional capital that fuels growth. 
• Bespoke Business Loans: SMEDAN was initiated with the idea that businesses are inherently different. To that end, the agency allows beneficiaries to tweak loan terms, ensuring that the loans match their realities.
• A Chance For Better Credit: Your ability to repay a SMEDAN loan does more than just free you from debt – it also helps your business to build a solid credit history, which clears your path towards securing even more loans in the future
• An Opportunity For Expansion: Armed with the additional capital, your business can begin embarking on new projects – entering new markets, developing new products, adopting technology for efficiency, and much more. All of these give you a chance for growth and optimization, which in turn lead to better business efficiency.

 

How To Register For SMEDAN and Get a Certificate

Now that you know the benefits of SMEDAN for your business, let’s examine the process of completing your SMEDAN registration. The first thing you should know is the requirement to register for SMEDAN.

As a government agency, SMEDAN has strict requirements for the businesses it works with. To register with the agency, you must meet the following eligibility criteria:

• Be an MSME (under 250 employees)
• Be legally registered with teh Nigerian Corporate Affairs Commission
• Have a business operating within Nigeria
• Have a verifiable identity document (for the business owner)
• Be between 18 and 45 years old
• Have valid contact information including a phone number and email.

Now, to the registration bit. As long as you have met the criteria, registering with SMEDAN is pretty easy, and you can do it from the comfort of your phone. All you have to do is:

• Visit https://smedanregister.ng/register
• Enter your business name, phone number, email address and password
• Provide other relevant information about your business e.g. number of staff, registered address, CAC registration number, etc,
• Submit.

Once you complete your registration, your SMEDAN certificate will be forwarded to your registered email and you can download it. Usually, your SMEDAN certificate should contain your business name, SMEDAN unique number, and the signature of the Director General of the Agency.

Once you register with SMEDAN and receive your unique SMEDAN number and certificate, it remains valid for life. The registration is a one-time process. However, you should keep your information updated with SMEDAN if there are significant changes in your business, such as a change in ownership or business structure.

Conclusion 

MSMEs in Nigeria need all the help they can get as they navigate the business landscape and shoot for growth. And, in that quest, a SMEDAN loan could just be what you need. Get You can register with the agency today and start sourcing for loans, just by following the steps we’ve outlined. 

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