The Federal Government has announced plans to introduce a legal framework to regulate Business Development Service Providers (BDSPs) in Nigeria. This move aims to improve the quality of support provided to small and medium enterprises (SMEs) across the country.
Speaking at the induction ceremony of 331 certified BDSPs organised by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Abuja, the Minister of State for Industry, Senator John Owan Enoh, highlighted the need for effective oversight in the SME support sector.
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“Regulation is key to ensuring accountability and sustainability in SME development services,” the minister stated. He noted that while various support structures are already in place for micro, small, and medium enterprises (MSMEs), many have failed to deliver expected results due to poor enforcement mechanisms and lack of proper supervision.
Performance-based licensing proposed
The minister proposed that BDSP licences should not be granted on a permanent basis. Instead, they should be performance-based and subject to regular reviews. This, he said, would help maintain quality and ensure that only competent service providers continue to operate within the sector.
According to Enoh, a structured regulatory system would also help eliminate inefficiencies and build trust among SME operators. “There must be a system that ensures these providers are held to standards,” he said.
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SMEDAN reaffirms commitment to SME development
Director-General of SMEDAN, Charles Odii, expressed the agency’s commitment to enhancing the SME ecosystem. He stressed the importance of engaging only qualified and credible professionals to support small businesses.
Odii explained that the recent induction of 331 certified BDSPs was a step towards improving service delivery in the sector. The move is expected to expand access to reliable support for entrepreneurs and contribute to inclusive economic growth.
“Our focus is to strengthen the SME sector by ensuring only credible professionals are engaged to support small businesses,” he stated.
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Way forward for SMEs in Nigeria
The regulation of BDSPs is seen as a strategic intervention to address longstanding gaps in the SME development space. Stakeholders believe that a formal legal framework will help streamline services, reduce exploitation, and promote the long-term viability of small businesses.
With the induction of new BDSPs and calls for regulatory reform, the Federal Government appears to be taking firm steps to support the growth and resilience of SMEs, which remain a vital part of the national economy.
