FG Unveils Mega Boost for Small Businesses: Access Up to N5 Million at 9% Interest!

By Achimi Muktar

In a groundbreaking move to drive inclusive economic growth, the Federal Government has raised the ceiling for single-digit loans accessible to Micro, Small, and Medium Enterprises (MSMEs) to N5 million. This development, announced at a town hall sensitization event in Lagos, underscores the government's commitment to empowering small businesses across Nigeria.

The Managing Director and CEO of the Bank of Industry (BoI), Dr. Olasupo Olusi, represented by Umar Shekarau, Executive Director of MSMEs at BoI, revealed the initiative as part of the N200 billion Presidential Intervention Fund for MSMEs. Of this amount, N75 billion has been earmarked specifically for MSME growth, promising to generate thousands of direct and indirect jobs nationwide.

How to Access the Loans

The BoI emphasized its commitment to transparency and integrity in the loan disbursement process. “Business owners can approach the Bank of Industry or register online without intermediaries to benefit from this initiative,” said Shekarau. The loans, offered at an interest rate of just 9% over three years, are designed to provide Nigerian entrepreneurs with the financial leverage to expand their operations.

Who Can Benefit?

The scheme is inclusive, targeting youths, women, the physically challenged, and other underserved demographics. With over 800,000 Nigerians already benefiting from similar initiatives, this new threshold is expected to accommodate even more ambitious entrepreneurs.

Why It Matters

Senior Special Assistant to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, highlighted the increase from the previous N1 million cap to N5 million, describing it as a bold step to address challenges like access to finance and infrastructure faced by small businesses.

“The President has made these funds available to cushion the effects of these challenges and empower businesses to thrive,” Adekunle-Johnson stated.

A Vision for Economic Empowerment

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, represented by Ahmed Gazalli, underscored the government’s focus on MSME growth as the backbone of Nigeria’s economy.

“This initiative marks a pivotal moment in our collective journey toward economic empowerment and sustainable growth. If MSMEs thrive, the Nigerian economy thrives,” Edun noted, urging stakeholders to collaborate in removing barriers to growth.

Success Stories

Several beneficiaries at the event shared their experiences, including Akor Goddy, a vegetable farmer from Badagry; Angela Christopher, a nanny; and William Asuquo, a food vendor from Isolo. Their testimonials highlighted how government interventions have transformed their businesses, offering hope for more Nigerians to follow suit.

What’s Next?

The town hall event, held simultaneously across six states, signals a renewed push by the Tinubu administration to reposition the economy through targeted support for small businesses and the manufacturing sector.

With increased funding, accessible interest rates, and a focus on inclusivity, the Federal Government’s initiative is set to empower MSMEs, drive job creation, and foster economic stability nationwide. For Nigerian entrepreneurs, this could be the breakthrough they’ve been waiting for.