The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has unveiled a N500 million interest-free financing scheme aimed at easing access to capital for micro, small and medium enterprises (MSMEs), as the agency intensifies efforts to strengthen Nigeria’s small business ecosystem and stimulate enterprise growth.
Speaking during an engagement with journalists in Abuja on Friday as part of activities marking the 2026 World MSME Day, SMEDAN Director-General, Charles Odii, said the newly introduced Grow Fund would operate as a revolving facility targeted at organised business groups rather than individual entrepreneurs.
According to Odii, the intervention will be channelled through cooperatives, trade unions, business membership organisations and other recognised associations to improve transparency, repayment performance and ensure genuine business operators benefit from the scheme.
He explained that the financing initiative responds directly to one of the most pressing constraints limiting the expansion of small businesses across the country.
“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 the facility would enable eligible businesses to strengthen their working capital, secure business premises and acquire equipment needed to expand operations.
“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.
He added that repayment arrangements would be determined in collaboration with each participating association, noting that the flexible structure would enable the revolving fund to support a larger number of entrepreneurs over time.
The SMEDAN boss further disclosed that the initial N500 million pool is expected to grow through collaboration with state governments, development partners and other institutions willing to provide matching funds.
Beyond financing, Odii said the agency is finalising a review of the National MSME Policy, which will be submitted to President Bola Tinubu for approval after another round of stakeholder consultations.
He noted that the revised policy proposes key reforms to improve the operating environment for small businesses, including access to single-digit interest loans, reserving 30 per cent of government procurement opportunities for MSMEs and removing age restrictions from government intervention programmes.
Odii also said SMEDAN would continue discussions with relevant regulatory agencies to address compliance issues affecting small businesses, including concerns over advertising registration requirements.
He called on state governments to collaborate with the agency in establishing more enterprise development centres to equip MSMEs with the capacity to take advantage of opportunities under the African Continental Free Trade Area (AfCFTA). Authority
