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The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched a N500 million zero-interest Grow Fund for Micro, Small and Medium Enterprises (MSMEs) in the country.
SMEDAN Director-General, Charles Odii, announced the initiative during an engagement with the Commerce and Industry Correspondents Association of Nigeria (CICAN) on Friday in Abuja.
The engagement was part of activities by SMEDAN to mark the 2026 World MSME Day.
Odii said the revolving loan would be disbursed through cooperatives, trade unions, business member organisations and associations instead of individual entrepreneurs.
According to him, the association-based model will improve accountability, loan recovery and ensure the funds reach genuine business owners.
He said the financing was designed to address one of the biggest challenges confronting small businesses in Nigeria.
“We visited traders at one of the markets today to engage directly with them because it is not enough to sit in offices and make policies without understanding their realities.
“Many of the challenges they raised border on financing, which is why we are launching the Grow Fund for Small Businesses in Nigeria,” he said.
Odii said beneficiaries would be able to access the zero-interest funding to boost working capital, procure workspaces and acquire tools required for their businesses.
“We are not giving the money to individuals directly. We are giving it to associations that understand their members and can manage the funds responsibly,” he said.
Odii said repayment terms would be agreed with each association, adding that the flexible arrangement would allow the revolving fund to benefit more entrepreneurs.
He said the initial N500 million would be expanded through partnerships with state governments, development partners and other institutions willing to provide matching funds.
The director-general said SMEDAN was also reviewing the draft National MSME Policy before forwarding it to President Bola Tinubu for approval.
He said stakeholders, including CICAN members, would participate in another round of consultations to strengthen the policy before its planned launch in November.
Odii also said the agency would engage relevant regulators on concerns affecting small businesses, including advertising registration requirements.
He urged state governments to partner with SMEDAN in establishing more enterprise development centres to prepare MSMEs for continental trade opportunities.
The Senior Special Assistant to the President on Industrial Training and Manpower Development, Adamson Ayinde, commended the association-based lending model.
Ayinde said working through recognised associations would improve monitoring, accountability and reduce diversion of government-supported equipment and business loans. (NAN)
