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FG Launches Game-Changing Loan Scheme for Small Businesses in Nigeria

By Achimi Muktar

In a landmark move to empower Nigeria’s small businesses, the Federal Government has unveiled a high-level committee to revolutionize Micro, Small, and Medium Enterprises (MSME) financing. This committee, inaugurated during the National Council on MSMEs' first 2025 meeting at the Presidential Villa, Abuja, is set to interface with the Central Bank of Nigeria (CBN) and key stakeholders to expand funding opportunities for entrepreneurs.

Chaired by the Minister of State for Industry, Trade, and Investment, Senator John Enoh, the committee includes influential figures such as the Ministers of Science and Technology, Women Affairs, and State for Agriculture and Food Security. Their mission? To break down financial barriers and ensure small business owners access affordable loans with ease.

In a major boost to MSME financing, the council has approved the Syndicated De-Risked Loans for Small Businesses, an initiative designed to offer loans at single-digit interest rates nationwide. The program will be executed through partnerships between state governments and financial institutions, ensuring entrepreneurs have access to low-risk, affordable capital.

Presiding over the council’s meeting, Vice President Kashim Shettima underscored the government’s commitment to sustained MSME growth. He urged state governments to establish non-partisan implementation structures that ensure the scheme's continuity beyond current administrations.

“Some of these initiatives are laudable and will need to outlive the present administrations in the states. Regardless of political affiliations, Nigerians must be seen to be the ultimate beneficiaries of these schemes that we are trying to put in place,” Shettima stated.

The committee boasts a powerhouse lineup, including Temitola Adekunle-Johnson, Senior Special Assistant to the President on MSMEs, and chief executives from major financial institutions such as SMEDAN, BOI, BOA, NEXIM Bank, DBN, CAC, NIPC, and NEPC. With such heavyweight backing, the initiative promises to be a transformative force for small businesses nationwide.

Temitola Adekunle-Johnson described the syndicated de-risked loan scheme as a turning point for Nigerian MSMEs, emphasizing President Bola Tinubu’s strong dedication to fostering business growth.

Meanwhile, SMEDAN’s Director-General, Charles Odii, outlined the GROW Nigeria Strategy, an ambitious plan to provide Guidance, Resources, Opportunities, and Workforce to over 40 million small businesses across eight key sectors.

With the Federal Government’s renewed push for MSME financing and this groundbreaking loan scheme, small business owners across Nigeria now have a golden opportunity to secure funding, expand operations, and create jobs. As implementation rolls out, entrepreneurs eagerly anticipate the real impact of these policies on their businesses and the economy.

Stay tuned for updates as Nigeria’s MSME sector enters a new era of growth and financial empowerment!