Programme Design

MSME Nigeria Project, World Bank/GoN 2006

    The MSME Nigeria Project incorporates various components, on financial services, investment climate and service markets. Specifically, the objective of the Business Development Service (BDS) Fund is to boost micro, small, and medium enterprise (MSME) performance and employment levels by expanding the capacity of BDS providers in terms of their quality, outreach, cost-effectiveness, impact, and sustainability.


    This component combines two approaches to business development:

    1. BDS Fund

    The BDS Fund offers grants to BDS providers serving all or any MSME sectors on a demand basis. Specifically, the BDS Fund will provide matching performance grants to BDS Providers serving the MSME market, and will operate initially in three states: Abia, Kaduna and Lagos states. The BDS Fund does not provide direct grant support to MSMEs.

    2. Industry Supply Chain Development Program

    The objective of this subcomponent is to improve the competitiveness of firms in specific industries by promoting the supply and demand of BDS and complementing this with private sector-led networking and market linkages. The Industry Supply-Chain Development sub-component will combine an industry focus and market development approach to the provision of business development services (BDS) and complementary private sector capacity building within the value chain. The assumption is that focusing on high growth sectors and addressing the inefficiencies along the chain can result in high and measurable impacts in terms of job creation and firm growth. The Project will work with up to four industries.

    Industries will be selected according to the following criteria:
    (i) high growth potential;
    (ii) size of the industry (contribution to GDP) and geographical distribution;
    (iii) number of MSMEs in the value chain and SME employment;
    (iv) potential for local MSMEs to capture more value added; and
    (v) evidence that financing/ TA can help MSMEs achieve the above two goals, i.e., there are no structural/business environment constraints outside the scope of the Project that would prevent success.

    More information can be found on the website, at the link above.