In a nation grappling with economic challenges, the issue of transparency in the management of public funds remains a contentious one. On September 24, 2025, Peter Obi, the former Governor of Anambra State and the Labour Party’s presidential candidate in the 2023 general elections, raised a critical question that has sparked widespread debate across Nigeria: Where is the N1 trillion allocated to Micro, Small, and Medium Enterprises (MSMEs) since 2015? Obi’s pointed inquiry, directed at the administration of President Bola Ahmed Tinubu, has reignited concerns about accountability, governance, and the effective utilization of funds meant to empower Nigeria’s economic backbone—its small businesses.
Obi’s remarks come at a time when Nigeria’s economy is facing significant headwinds, including inflation rates hovering around 32%, a volatile exchange rate, and rising unemployment. MSMEs, which account for approximately 48% of Nigeria’s Gross Domestic Product (GDP) and employ over 80% of the workforce, are critical to addressing these challenges. Yet, Obi’s allegations suggest that the funds intended to support this vital sector may have been mismanaged, misallocated, or outright misappropriated, leaving millions of entrepreneurs and small business owners without the support they desperately need.
The Context: MSMEs and Nigeria’s Economic Survival
Micro, Small, and Medium Enterprises are the lifeblood of Nigeria’s economy. From roadside vendors to tech startups, these businesses drive innovation, create jobs, and contribute significantly to the nation’s GDP. According to the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), there are over 40 million MSMEs in the country, employing more than 60 million Nigerians directly and indirectly. These enterprises operate in diverse sectors, including agriculture, retail, manufacturing, and services, and they play a pivotal role in reducing poverty and fostering economic inclusion.
However, MSMEs in Nigeria face numerous challenges, including limited access to affordable credit, high operating costs, inadequate infrastructure, and bureaucratic bottlenecks. To address these issues, successive governments have introduced various funding schemes and intervention programs aimed at empowering small businesses. Since 2015, the Federal Government, under both the administration of former President Muhammadu Buhari and the current Tinubu administration, has claimed to allocate substantial sums—totaling over N1 trillion—to support MSMEs. These funds were purportedly channeled through agencies such as the Bank of Industry (BOI), the Central Bank of Nigeria (CBN), and other development finance institutions.
Peter Obi’s recent comments have cast a shadow of doubt over the management of these funds. Speaking at a public event in Abuja, the former governor expressed dismay at the lack of tangible results from the massive allocations. “Since 2015, we have been told that over N1 trillion has been disbursed to support MSMEs,” Obi said. “But where is the evidence? Where are the businesses that have been transformed? Where are the jobs that have been created? Nigerians deserve answers.”
A Breakdown of the N1 Trillion Question
To understand the gravity of Obi’s allegations, it is essential to examine the context of MSME funding in Nigeria over the past decade. Since 2015, several high-profile intervention programs have been launched, each accompanied by promises of economic transformation. Some of the most notable initiatives include:
The Anchor Borrowers’ Programme (ABP): Launched by the CBN in 2015, the ABP was designed to provide low-interest loans to smallholder farmers to boost agricultural productivity and reduce food imports. The program was touted as a game-changer for rural economies, with billions of naira reportedly disbursed to farmers. However, reports of mismanagement, inadequate monitoring, and loan repayment challenges have plagued the initiative, raising questions about its effectiveness.
The N-Power Programme: Introduced in 2016, N-Power aimed to provide skills training and stipends to unemployed youths, many of whom aspired to start small businesses. While the program benefited some participants, it faced criticism for poor implementation, delayed payments, and a lack of sustainability.
The MSME Survival Fund: Launched in 2020 as part of the Nigeria Economic Sustainability Plan (NESP), the Survival Fund was a response to the economic fallout from the COVID-19 pandemic. The initiative promised grants, payroll support, and loans to MSMEs to help them weather the crisis. The government claimed to have disbursed billions of naira, but many business owners reported difficulties accessing the funds due to bureaucratic hurdles and alleged favoritism.
The BOI and DBN Interventions: The Bank of Industry and the Development Bank of Nigeria (DBN) have been key players in disbursing loans to MSMEs. The BOI, for instance, manages several funds, including the N200 billion MSME Development Fund and the N235 billion CBN Intervention Fund for Manufacturing. While these institutions have reported disbursing significant sums, the impact on the ground has been questioned, with many entrepreneurs citing high interest rates and stringent collateral requirements as barriers.
According to Obi, the cumulative sum of these and other interventions amounts to over N1 trillion since 2015. Yet, the former governor argues that the economic indicators do not reflect the scale of investment. “If N1 trillion has been invested in MSMEs, we should see thriving businesses, reduced unemployment, and increased economic activity,” he said. “Instead, we see rising poverty, collapsing businesses, and a struggling economy. Where did the money go?”
Obi’s Call for Accountability
Peter Obi’s remarks are not merely a critique of the Tinubu administration but a broader indictment of governance in Nigeria. His call for transparency resonates with millions of Nigerians who have grown weary of unfulfilled promises and opaque financial management. Obi has consistently advocated for accountability, emphasizing that public funds must be used judiciously to deliver measurable results.
In his statement, Obi demanded a detailed breakdown of how the N1 trillion was disbursed, including the names of beneficiaries, the terms of the loans or grants, and the impact on job creation and economic growth. “The government owes Nigerians an explanation,” he said. “If we are serious about economic recovery, we cannot continue to operate in secrecy. Every kobo must be accounted for.”
Obi’s comments have sparked a heated debate on social media platforms, particularly on X, where Nigerians have expressed a mix of support and skepticism. Some users praised Obi for raising critical issues, with one post stating, “Peter Obi is asking the questions we all want answers to. Where is the N1 trillion? Nigerians deserve to know!” Others, however, questioned whether Obi’s critique was politically motivated, given his status as a prominent opposition figure.
The Tinubu Administration’s Response
As of September 24, 2025, the Tinubu administration has not issued an official response to Obi’s allegations. However, sources within the government have suggested that the Presidency views the remarks as an attempt to politicize economic issues. A senior official, speaking anonymously, claimed that the administration remains committed to supporting MSMEs and that efforts are underway to streamline funding processes and improve transparency.
The Tinubu government has made MSME development a cornerstone of its economic agenda. Since taking office in May 2023, President Tinubu has announced several initiatives aimed at empowering small businesses, including the establishment of a N200 billion Presidential Intervention Fund for MSMEs and the removal of certain taxes to reduce the burden on small enterprises. However, these policies have yet to translate into widespread impact, and critics argue that implementation remains a significant challenge.
The Broader Issue: Transparency and Governance in Nigeria
Peter Obi’s allegations highlight a deeper issue in Nigeria’s governance structure: the lack of transparency in public finance management. For decades, Nigerians have grappled with allegations of corruption, mismanagement, and inefficiency in the handling of public funds. The MSME funding controversy is just one of many instances where questions about accountability have arisen.
Transparency International’s Corruption Perceptions Index (CPI) consistently ranks Nigeria among the most corrupt countries globally, with a score of 25 out of 100 in 2024. This perception of systemic corruption undermines public trust in government institutions and fuels skepticism about initiatives like MSME funding programs. For many Nigerians, Obi’s question—“Where did the N1 trillion go?”—echoes long-standing frustrations with a system that appears to prioritize political interests over public welfare.
The issue of MSME funding is particularly critical because of its direct impact on ordinary Nigerians. Small businesses are often the only source of income for millions of families, and their success or failure can determine whether communities thrive or languish in poverty. When funds meant to support these businesses are mismanaged, the consequences are far-reaching, exacerbating inequality and stifling economic growth.
Challenges Facing MSME Funding in Nigeria
To fully appreciate the significance of Obi’s allegations, it is worth examining the broader challenges facing MSME funding in Nigeria. These challenges include:
Bureaucratic Bottlenecks: Many entrepreneurs report difficulties accessing government-backed loans and grants due to complex application processes, excessive paperwork, and delays in disbursement. In some cases, applicants are required to provide collateral or meet stringent eligibility criteria that exclude the most vulnerable businesses.
Corruption and Favoritism: Allegations of corruption have dogged MSME funding programs, with reports of funds being diverted to politically connected individuals or nonexistent businesses. In 2020, for instance, the MSME Survival Fund faced criticism after some beneficiaries claimed they never received the promised grants.
Lack of Monitoring and Evaluation: Effective monitoring and evaluation mechanisms are essential to ensure that funds are used for their intended purpose. However, many government programs lack robust systems to track disbursements and measure impact, making it difficult to assess their success.
High Interest Rates: Even when loans are accessible, high interest rates—sometimes exceeding 20%—make it challenging for small businesses to repay, leading to defaults and further economic strain.
Inadequate Infrastructure: MSMEs operate in an environment plagued by poor infrastructure, including unreliable electricity, bad roads, and limited internet access. These challenges reduce the effectiveness of funding interventions, as businesses struggle to scale without basic support systems.
The Way Forward: Recommendations for Reform
Addressing the concerns raised by Peter Obi requires a multifaceted approach that prioritizes transparency, accountability, and effective implementation. Below are some recommendations for reforming MSME funding in Nigeria:
Enhanced Transparency: The government should publish detailed reports on MSME funding, including the names of beneficiaries, the amounts disbursed, and the terms of disbursement. A public dashboard could be created to track the progress of intervention programs in real-time.
Streamlined Processes: Application processes for loans and grants should be simplified to ensure that small businesses, particularly those in rural areas, can access funds without undue difficulty. Digital platforms could be leveraged to reduce bureaucracy and improve efficiency.
Independent Oversight: An independent body, comprising representatives from civil society, the private sector, and international organizations, should be established to oversee the disbursement and utilization of MSME funds. This would help curb corruption and ensure accountability.
Capacity Building: Beyond funding, MSMEs need training and mentorship to improve their business management skills, adopt technology, and access new markets. Government programs should include capacity-building components to ensure long-term sustainability.
Affordable Financing: Interest rates on MSME loans should be subsidized to make them more affordable. The government could also explore non-repayable grants for micro-enterprises in critical sectors like agriculture and healthcare.
Strengthened Monitoring and Evaluation: Robust mechanisms should be put in place to track the impact of MSME funding on job creation, revenue generation, and economic growth. Regular audits and impact assessments would help identify gaps and improve future interventions.
The Political Dimension
Peter Obi’s remarks cannot be viewed in isolation from the broader political context. As a leading opposition figure, Obi has positioned himself as a champion of good governance and accountability, themes that resonated strongly during his 2023 presidential campaign. His critique of the Tinubu administration’s handling of MSME funds is likely to intensify political tensions as Nigeria approaches the 2027 general elections.
However, Obi’s focus on MSME funding is not merely a political strategy. It reflects a genuine concern shared by millions of Nigerians who see small businesses as a pathway to economic recovery. By raising the issue, Obi is putting pressure on the government to prioritize transparency and deliver on its promises to the private sector.
Conclusion
The question of where Nigeria’s N1 trillion in MSME funding has gone is more than a rhetorical jab; it is a call to action for a nation at a crossroads. As Nigeria grapples with economic challenges, the success of its small businesses will play a critical role in determining its future. Peter Obi’s allegations have brought renewed attention to the need for transparency, accountability, and effective governance in the management of public funds.
While the Tinubu administration has an opportunity to address these concerns and rebuild public trust, it must act swiftly to provide answers and implement reforms. For millions of Nigerians who depend on MSMEs for their livelihoods, the stakes could not be higher. As the debate over the missing N1 trillion unfolds, one thing is clear: Nigerians deserve to know where their money has gone and what it has achieved.