The Federal Ministry of Commerce and Industry has approved the official hander over of 23 Industrial Development Centres [IDCs] across the country to the Small and Medium Enterprises Development Agency of Nigeria [SMEDAN] in line with the Act establishing the Agency, paving the way for implementation of the laid-down strategies for the re-positioning of the IDCs.

The approval was announced on Thursday December 17, 2009 in Abuja by the Minister of State for Commerce and Industry, Chief Humphrey Abah, during a meeting between the Ministry and SMEDAN officials. The Minister also approved a ten-point recommendation of a Ministerial Committee charged with the responsibility to fashion out the necessary modalities for the hand-over of the IDCs to SMEDAN.

• That the staff of the IDCs may as much as possible be absorbed by SMEDAN while all considerations on the issue must receive the approval of the Honourable Minister;
• That the emoluments of the IDCs staff so absorbed remain in the Ministry up to end of 2010 when it is hoped that appropriate provision would be made to enable SMEDAN take over the responsibility;
• That the start-up of the Industrial Cluster Strategy as approved by the Federal Executive Council adopt the option of using the four zonal IDCs of Bauchi, Owerri, Osogbo and Zaria as models for their comparative advantages;
• That the Goovernment undertake the necessary development of the four Zonal Centres as start-up for the Industrial Cluster Concept;
• That IDCs with large tracts of under-utilized land holdings within or near urban centres, present opportunities to provide targeted, cost-effective solutions for persisting inadequacies of modern workspaces and supporting business infrastructure to MSMEs. As such they possess innate potential for development as prime industrial sites;
• That upgrading of the IDCs to cluster parks, under a Public-Private Partnership [PPP] model, in line with subsisting Federal Executive Council [FEC 2007] directive is still relevant and in tandem with FEC approved National Cluster Concept;
• That the hybrid Build Operate and Transfer [BOT] incorporates the advantages of Joint Ventures and regular BOT, and is strongly recommended given the peculiarity of a weak MSMEs sub-sector;
• That phased cluster development, beginning with the most viable IDC sites, since economic viability is a prime motivation for private sector participation. Where up-grading of any IDC to cluster parks is therein not feasible other options of optimaaly utilizing the centre should be considered;
• That SMEDAN should embark on the identified post handing over activities which includes re-confirming currently available land areas of the IDCs and critically reviewing the cluster park concept to ensure its comprehensive packaging for successful marketing to interested parties, experts, State Governments and potential investors input are strongly recommended for these set of activities;
• Finally, in line with FEC [2007] directive, there is need to proceed expeditiously with the disposal of all IDCs obsolete machines/equipment to forestall further depreciation in value. Due process as it pertains to the sale of government properties should strictly be adhered to.

Present at the meeting, on the side of the Ministry, were: the Minister of State for Commerce and Industry, Chief Humphrey Abah; Ag. Director of Industrial Development, Engr. Salami; Director [Commodities Department], Alhaji Usman Gwandu. On the side of SMEDAN were: the Director-General, Muhammad Nadada Umar; the Group Head [Planning, Research and Coordination], Mr. Olawale Fasanya; Chief Programme Officer [Engineering, Technology & Infrastructure], Engr. Tony Igba.