In a major push to support small businesses, the Nigerian government has announced a groundbreaking ₦220 million cash prize for the overall winner of the 2025 Micro, Small, and Medium Enterprises (MSME) of the Year Awards. The announcement underscores the administration’s commitment to fostering entrepreneurship and economic growth in the country.
The prize, which represents one of the largest financial incentives for small businesses in Nigeria’s history, aims to encourage innovation, job creation, and competitiveness among entrepreneurs. The initiative is part of the federal government’s broader strategy to strengthen the MSME sector, which contributes over 50% to the country’s Gross Domestic Product (GDP) and accounts for about 80% of employment in Nigeria.
Speaking at the launch event in Abuja, Vice President Kashim Shettima reaffirmed the government’s commitment to empowering small businesses. “MSMEs are the backbone of our economy. This award is not just about recognition but about providing real financial support to scale businesses and drive sustainable economic transformation,” he stated.
Selection Criteria and Award Structure
The MSME of the Year Award is open to businesses across various industries, including agriculture, technology, manufacturing, and creative arts. The selection process will evaluate businesses based on their:
- Innovation and Creativity – Unique business models and problem-solving approaches.
- Scalability and Sustainability – Long-term growth potential and financial viability.
- Job Creation and Social Impact – Contribution to employment generation and community development.
Apart from the ₦220 million grand prize, additional awards will be given to winners in different categories, including Best Startup, Most Innovative Business, and Best Female-Led Enterprise.
Reactions from Entrepreneurs and Industry Experts
The announcement has been met with enthusiasm from the business community, with many seeing it as a game-changer for MSME development in Nigeria.
“This is the kind of support small businesses need,” said Abiola Ogunlade, CEO of a Lagos-based agribusiness startup. “With ₦220 million, a winning MSME can scale operations, invest in new technology, and create more jobs.”
Financial analysts also praised the move, noting that direct financial interventions could help address challenges such as limited access to credit and high operational costs. However, some experts cautioned that transparency in the selection process would be key to ensuring the funds reach deserving businesses.
Government’s Broader MSME Support Initiatives
Beyond the MSME award, the federal government has been implementing a series of policies aimed at strengthening small businesses, including:
- The MSME Survival Fund – A post-COVID relief initiative providing grants and payroll support.
- Reduced Tax Incentives – Lower tax rates and exemptions for small businesses.
- Access to Credit – Partnerships with commercial banks and fintech firms to provide low-interest loans.
What’s Ahead?
With applications set to open in April 2025, thousands of entrepreneurs are expected to compete for the prestigious award. The grand prize winner will be announced at a high-profile awards ceremony later in the year, with top government officials and industry leaders in attendance.
Observers believe this initiative could inspire more Nigerians to venture into entrepreneurship, ultimately driving economic diversification and reducing unemployment.
