The Federal Government has announced a plan to improve access to loans for small and medium enterprises (SMEs) in Nigeria. The initiative aims to eliminate the financial challenges that small businesses face in securing funding.
At the Renewed Hope Global Virtual Conference 2025 on Sunday, the Minister of State for Industry, Trade, and Investment, Senator John Enoh, stated that the government is partnering with First City Monument Bank (FCMB) to simplify loan disbursement for micro and small enterprises.
“In the coming weeks, we expect to announce a collaboration that will enable thousands of small business owners to access funding more easily,” Enoh said.
Many business owners struggle to secure funding due to commercial banks’ bureaucratic processes. The government aims to reduce these challenges through the partnership.
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BOI’s role in SME financing
The Bank of Industry (BOI) remains central to the government’s strategy for SME financing. Senator Enoh acknowledged BOI’s role in supporting businesses but admitted that many small enterprises still struggle to access 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 this, the government plans to streamline loan application processes and make financing more accessible.
Plans for export processing zones
Beyond SME financing, the government is working to improve Nigeria’s export processing zones to promote industrial growth. The minister noted that some targets in the oil and gas processing zones have not been met but assured that efforts are underway to maximise 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,” Enoh said.
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Formation of the industrial revolution work group
To boost industrial development, the government is setting up an Industrial Revolution Work Group. The task force will include government agencies, private sector representatives, and industry associations such as the Manufacturers Association of Nigeria (MAN), the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), and the Nigeria Association of Small and Medium Enterprises (NASME).
The Ministry of Power, Ministry of Finance, and the Nigeria Customs Service will also be part of the group.
“This initiative is currently being fine-tuned, and once fully operational, it will significantly advance Nigeria’s industrial sector,” Enoh said.
$700m iDICE initiative for digital businesses
The government is also working to support tech entrepreneurs and creatives through the Investment in Digital and Creative Enterprises (iDICE) initiative. The $700 million programme is backed by Afreximbank, the Islamic Development Bank, and a French financial institution.
“iDICE is a critical part of our strategy to foster innovation and entrepreneurship, positioning Nigeria as a global leader in the digital economy,” Enoh said.
Impact on Nigerian entrepreneurs
These initiatives aim to make funding more accessible, promote industrial growth, and support digital innovation. If successful, small businesses will face fewer barriers to financing and benefit from a more supportive business environment.
