Nigeria’s Federal Government has launched a new financing initiative to support micro, small, and medium enterprises (MSMEs), a sector that contributes over 50% to the country’s GDP. The Syndicated De-Risked Loans for Small Businesses will offer single-digit interest rates, easing credit access for millions of entrepreneurs.
The initiative, approved during the National Council on MSMEs’ first 2025 meeting at the Presidential Villa, includes a high-level committee to coordinate efforts with the Central Bank of Nigeria (CBN) and other financial institutions. Vice President Kashim Shettima, who presided over the meeting, emphasized the need for sustainable, non-partisan structures to ensure the program benefits small businesses beyond the current administration.
“This initiative must outlive political cycles because MSMEs are the backbone of our economy,” Shettima said. “State governments must establish frameworks that guarantee long-term impact.”
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The newly formed committee, chaired by Minister of State for Industry, Trade, and Investment, Senator John Enoh, brings together key government and private-sector players, including the Ministers of Science and Technology, Women Affairs, and Agriculture, alongside executives from SMEDAN, the Bank of Industry (BOI), and NEXIM Bank.
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Temitola Adekunle-Johnson, Senior Special Assistant to the President on MSMEs, described the syndicated loan scheme as a “game-changer” for small businesses. He highlighted President Bola Tinubu’s commitment to MSME development, noting that the initiative is designed to create jobs and foster economic stability.
Meanwhile, SMEDAN’s Director-General, Charles Odii, outlined the agency’s *GROW Nigeria Strategy*, which aims to provide guidance, resources, and workforce support to approximately 40 million small businesses across eight critical sectors. The strategy was developed following a three-day MSME conference in 2024.
States, Private Sector Urged to Sustain MSME Growth
Vice President Shettima urged state governments to collaborate with financial institutions to ensure the long-term success of the new loan program. He emphasized that political affiliations should not interfere with efforts to support small businesses, which employ over 80% of Nigeria’s workforce.
The Syndicated De-Risked Loans for Small Businesses are expected to mitigate credit risks, making funds more accessible to small-scale entrepreneurs. With commercial lending rates often exceeding 20%, the initiative’s single-digit interest rates could significantly ease financial burdens on MSMEs.
“We cannot grow our economy without supporting those who drive it,” Shettima said. “This is about giving small businesses the financial leverage they need to thrive.”
