Nigeria’s federal government has launched a financing programme aimed at empowering thousands of Micro, Small and Medium Enterprises (MSMEs) with affordable credit to support business growth across sectors.
Officials on Tuesday unveiled the Inspire‑Create‑Start‑Scale (ICSS) programme in Abuja, reinforcing the government’s ongoing drive to improve SME access to finance. The programme is expected to deliver single‑digit interest loans to a targeted 6,122 MSMEs nationwide.
The initiative was developed under the leadership of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in partnership with the German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and Kaduna Business School.
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Loan structure and delivery partners
Under the ICSS programme, participating small businesses will access credit facilities through Jaiz Bank, which has been selected to manage the loan portfolio. Government sources stated that loans will be structured to support both early‑stage entrepreneurs and growth‑oriented small firms. The financing covers seed capital for startups, working capital for existing enterprises and funds to scale production or services.
Officials explained that the scheme is designed to bridge the gap between entrepreneurship training and practical access to finance, a gap that has hindered the growth of many Nigerian small enterprises. According to SMEDAN representatives, credit affordability and accessibility are primary constraints that the new loan programme seeks to address effectively.
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A response to persistent finance shortfalls
Small business advocates and stakeholders welcomed the government’s announcement, noting that high interest rates and limited credit access have long constrained SMEs. Business groups say that reducing borrowing costs to single‑digit rates could incentivise more entrepreneurs to formalise operations and expand employment.
A representative of a Lagos‑based SME association said the new programme could provide relief for businesses facing costly informal credit arrangements. “Affordable credit opens opportunities for growth, buying equipment, and expanding services,” the representative said, highlighting that many small firms currently struggle to secure loans from traditional commercial banks.
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Implications for job creation and growth
Economists said that broadening MSME access to finance can strengthen Nigeria’s entrepreneurial ecosystem and sustain long‑term job creation. MSMEs already contribute significantly to employment, and improved financial support could enhance productivity and competitiveness.
While details on disbursement timelines and eligibility criteria were limited at launch, government officials assured stakeholders that implementation guidelines will be released shortly to ensure transparency and broad participation by qualifying enterprises.
The ICSS programme marks a continued move by the federal government to align policy with economic goals that prioritise small business growth, financial inclusion and sustainable development within Nigeria’s diverse SME environment.
