SMEDAN AfCFTA packaging reform targets Nigerian MSME export readiness

NIGERIA – The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has introduced a policy framework addressing packaging, branding and compliance gaps that block Nigerian MSMEs from accessing African Continental Free Trade Area markets.

The Small and Medium Enterprises Development Agency of Nigeria is shifting focus from general enterprise support to technical export readiness. 

Director-General Mr Charles Odii announced during a product packaging and branding training session in Abuja that the new framework targets compliance gaps that have historically kept Nigerian nano, micro, small, and medium enterprises from fully accessing the African Continental Free Trade Area. 

The initiative will run for six to twenty-four months, with measurable milestones for each participating business.

Regulatory and Cost Barriers Identified

Odii outlined several overlapping constraints. Regulatory compliance remains weak, with many business owners unaware of NAFDAC, SON, and international certification requirements. 

He noted that high packaging costs, weak branding, poor intellectual property protection, and limited export marketing capabilities further reduce competitiveness. 

Logistics challenges, inadequate cold-chain facilities, and financing constraints create additional hurdles. 

Many enterprises, Odii observed, cannot access packaging engineers, product designers, or export-focused marketing professionals. 

A typical Nigerian MSME spends approximately ₦150,000 (US$98) monthly on basic packaging alone, a figure Odii described as unsustainable for nano enterprises operating on thin margins.

Shared Hubs and Financing Mechanisms Proposed

To address these issues, SMEDAN proposed establishing shared packaging and testing hubs that would lower individual compliance costs through collective access. 

The agency also plans to roll out accelerated compliance support, digital market access programmes, and targeted financing. 

Odii stated that a voucher and guarantee financing model would help remove key barriers facing small businesses. 

Strong institutional partnerships, he confirmed, would be required to sustain the programme and maximise AfCFTA opportunities. 

Special attention, he added, would be given to women-led, youth-led, rural, and informal enterprises to ensure inclusive participation.

Beneficiaries Report Tangible Business Growth

Beneficiaries reported measurable improvements. 

Hadiza Mohammed, Managing Director of Click Wellness Beverages, said that the training had improved her knowledge of packaging and branding. 

She expressed gratitude to SMEDAN, describing the initiative as valuable for enterprise development and sustainability. 

Temitope Adedeji of Topsybol Enterprises, who deals in grains, dairy products, palm oil, and footwear, said that the training had exposed her to opportunities in export and business expansion. 

Adedeji noted that her business had expanded from supplying one bag of products to approximately ten bags, while her palm oil business grew from one keg to ten gallons. 

She urged SMEDAN to expand the initiative to reach more entrepreneurs across the country. SMEDAN is currently training thirty-five participants for the current quarter, with plans to scale based on early results.

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