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FG’s Bold Plan to Make SME Loans Easier—Here’s What You Need to Know

By Achimi Muktar

The Federal Government has unveiled an ambitious plan to revolutionize access to loans for small and medium enterprises (SMEs) across Nigeria. This initiative, set to launch in the coming weeks, aims to eliminate the financial bottlenecks that have long stifled small businesses.

A Game-Changer for Nigerian Entrepreneurs

During the Renewed Hope Global Virtual Conference 2025 held on Sunday, the Minister of State for Industry, Trade, and Investment, Senator John Enoh, announced that the government is partnering with First City Monument Bank (FCMB) to simplify loan disbursement for micro and small enterprises.

Recognizing the struggles business owners face in securing funding—especially when dealing with commercial banks—the minister assured that this collaboration would offer a seamless, less bureaucratic process for accessing loans.

"In the coming weeks, we expect to announce a collaboration that will enable thousands of small business owners to access funding more easily," Enoh stated.

How the Bank of Industry (BOI) Fits In

The Bank of Industry (BOI) remains at the core of the government’s strategy to support SMEs. Senator Enoh acknowledged BOI’s role in funding businesses but admitted that many small enterprises still encounter difficulties in securing loans.

"The BOI has been instrumental in supporting businesses, but I recognize the hurdles many small enterprises face in accessing loans," he said.

To address these challenges, the government is working to streamline loan application processes and make financing more accessible to small business owners.

Export Processing Zones to Get a Boost

Beyond easing loan access, the federal government is also set to revamp Nigeria’s export processing zones to enhance industrial expansion. The minister acknowledged that some targets in the oil and gas processing zones have not been fully met, but assured that efforts are underway to maximize their economic potential.

"Although we may not have achieved all our initial goals, this administration is focused on ensuring that our export processing zones operate efficiently and deliver value to the Nigerian economy," he said.

Introducing the Industrial Revolution Work Group

To further accelerate industrial growth, the government is forming an Industrial Revolution Work Group. This task force will bring together key stakeholders, including:

Government agencies

Private sector representatives

The Manufacturers Association of Nigeria (MAN)

The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA)

The Nigeria Association of Small and Medium Enterprises (NASME)

The Ministry of Power, Finance, and the Nigeria Customs Service

The Work Group will tackle industrial challenges and drive Nigeria’s transformation into a global economic powerhouse.

"This initiative is currently being fine-tuned, and once fully operational, it will significantly advance Nigeria’s industrial sector," Enoh noted.

$700 Million iDICE Initiative to Boost Digital Businesses

In addition to loan access reforms, the minister highlighted the Investment in Digital and Creative Enterprises (iDICE) initiative—a $700 million program designed to empower tech entrepreneurs and creatives.

This initiative, backed by Afreximbank, the Islamic Development Bank, and a French financial institution, will provide funding and business expansion support to Nigeria’s growing digital economy.

"iDICE is a critical part of our strategy to foster innovation and entrepreneurship, positioning Nigeria as a global leader in the digital economy," Enoh emphasized.

What This Means for Nigerian Entrepreneurs

With these upcoming changes, the Nigerian government is taking concrete steps to remove barriers to funding, promote industrial growth, and support digital innovation. If executed successfully, these initiatives could usher in a new era of economic prosperity for small businesses across the country.

For SMEs, this means easier access to capital, fewer bureaucratic hurdles, and a more supportive business environment. Could this be the breakthrough Nigerian entrepreneurs have been waiting for? Time will tell.