Why this appointment matters
The Special Adviser on MSMEs and Microfinance is a pivotal position because it bridges policymaking and on-the-ground support for small businesses. In Benue, a state with significant agricultural potential and a growing population of micro-entrepreneurs, the office should coordinate interventions that:
- Improve access to credit and financial services tailored to micro and small businesses.
- Promote skills development, business formalisation, and digital adoption.
- Facilitate market linkages between producers, processors, and urban consumers.
- Mobilise partnerships with development agencies, the private sector, and fintechs.
The relatively swift turnover in the post with Akombo’s resignation after just three months in 2023 underscores the difficulties inherent in translating policy intent into measurable outcomes. Stability in leadership and a clear, measurable workplan will be critical to delivering results.
Immediate priorities the new Special Adviser should pursue
To rapidly generate impact, Agada’s office can prioritise several high-impact, low-cost actions while designing longer-term reforms:
- Diagnostic mapping of MSMEs and credit needs. Conduct a rapid state-wide mapping of microenterprises by sector, scale, and financing gap to inform targeted interventions and tracking.
- Resolve barriers to microfinance accessibility. Work with microfinance banks, community savings groups (ESOs/ROSCAs), and fintech lenders to simplify onboarding, reduce collateral demands, and pilot mobile-based lending aligned with agribusiness cycles.
- Launch an MSME capacity-building drive. Provide short, practical training modules on bookkeeping, cost control, digital payments, and business registration in local languages and through community hubs.
- Facilitate market linkages and aggregation. Support producer cooperatives and aggregation centres that can bundle smallholder output for larger buyers, improving prices and reducing waste.
- Design risk-sharing facilities. Collaborate with state and development partners to create partial credit guarantees or matching funds that de-risk lending to first-time entrepreneurs.
- Promote formalisation and regulatory simplification. Make business registration faster and cheaper, and align local taxes with the cash flows of microenterprises.
Structural challenges in Benue that the office must address
Benue State shares many constraints common to subnational economies across Nigeria:
- Limited financial access: Micro and small enterprises often lack collateral, financial histories, or digital footprints that conventional banks require.
- Infrastructure gaps: Poor roads, inconsistent power supply, and weak cold-chain logistics raise operational costs and food loss for agrifood businesses.
- Skills and managerial capacity: Many MSME owners are skilled artisans or farmers but lack formal training in business management and marketing.
- Market fragmentation: Small producers struggle to reach larger urban markets due to lack of aggregation, standards, or market intelligence.
- Policy coordination: Multiple agencies can have overlapping mandates, leading to fragmented or duplicated interventions.
What success looks like: measurable outcomes to track
To move beyond rhetoric, Agada’s office should commit to measurable outcomes with clear timelines. Early, trackable indicators might include:
- Number of MSMEs reached with training and digital onboarding (quarterly).
- Value and number of microloans disbursed through coordinated initiatives.
- Increase in formal business registrations among microenterprises.
- Reduction in post-harvest losses for targeted agricultural value chains.
- Jobs supported (direct and indirect) through MSME interventions.
Policy options and international models Benue can adapt
Benue need not reinvent the wheel. Several globally-tested approaches can be adapted to local realities:
- Digital microcredit platforms: Partner with fintechs to deliver small loans via mobile phones, with repayment schedules aligned to crop cycles.
- Group-lending and savings groups: VSLAs and cooperative-based lending reduce default risk and build financial literacy.
- Matching grants for productivity upgrades: Small grants that match private investment can help microprocessors buy equipment that raises quality and shelf life.
- Business incubators and hubs: Sector-specific incubators (e.g., agribusiness processing hubs) provide shared facilities, mentorship, and market links.
- Credit guarantee schemes: State-backed partial guarantees can incentivise banks to lend to micro and small enterprises without full collateral.
Budgeting and funding: mobilising resources sustainably
Financing MSME support requires a mix of sources: state budget allocations, development partner grants for technical assistance, private sector partnerships and revolving microcredit funds replenished by repayments. A clear funding plan and transparent financial management are vital to avoid resource leakage and ensure program continuity.
Stakeholder engagement: building partnerships that last
Success depends on broad partnerships: local government councils, financial institutions, universities, private sector anchor buyers, and civil society. Institutionalising stakeholder engagement through regular roundtables and a formal advisory board will help sustain programmes.
Risks and how to mitigate them
Key risks include political turnover, poor governance of funds, low uptake by entrepreneurs and market shocks. Mitigation measures include embedding programmes in institutional frameworks, transparent procurement and audits, user-focused design, and emergency buffers for vulnerable enterprises.
Youths and women at the centre of empowerment
MSMEs offer a route to employ youth and empower women. Benue’s strategy should include tailored training for women-led businesses, youth incubators with mentorship and seed grants, and support for female savings groups and women-focused lending windows.
Linda Ene Agada inherits a role that requires both vision and execution. The Special Adviser must quickly transform policy intent into deliverables mapping needs, piloting demand-driven financial products, and mobilising partners. Success will be measured by increased business survivability, higher incomes, and improved access to finance for Benue’s micro and small entrepreneurs.
