The Federal Government of Nigeria has launched a ₦198 billion syndicated loan fund to support Micro, Small, and Medium Enterprises (MSMEs) across the country.
The initiative, which is set to begin in the first quarter of 2025, aims to provide financial relief to small businesses, fostering entrepreneurship and stimulating economic growth nationwide.
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Accessible loans for business growth
The loans will be offered at a single-digit interest rate of 9%, a move designed to ease the financial burden on business owners. Eligible businesses can access up to ₦100 million, with a repayment period of five years and a one-year moratorium. These features aim to give MSMEs ample time to establish and grow their operations before repayments commence.
Temitola Adekunle-Johnson, Senior Special Assistant on Job Creation and MSMEs, stated that the program’s design ensures equitable access to the fund across all states of the federation. “This initiative will ensure that MSMEs, from Kebbi to Plateau, have access to these resources to expand their businesses and contribute to the national economy,” he said.
Additional support beyond loans
Beyond loans, the government has pledged to provide free shops to deserving MSMEs, transitioning beneficiaries from renters to shop owners. Adekunle-Johnson disclosed that housing, shops, and vehicles have already been secured for this aspect of the initiative, ensuring businesses operate in conducive environments.
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Grants and training for skill development
The initiative also includes grants of up to ₦400,000 for businesses, as announced by the Office of the Vice President in collaboration with the Federal Ministry of Finance. Beneficiaries of these grants will be required to train two individuals for a year, with the federal government covering the trainees’ salaries. This component aims to encourage skill development and job creation across the country.
According to Adekunle-Johnson, this strategy marks a shift from one-off grants to more sustainable financing models. “We’re not just supporting businesses with funds; we’re building an ecosystem where MSMEs can thrive, innovate, and create jobs,” he added.
This comprehensive approach underscores the government’s commitment to addressing critical challenges faced by MSMEs, including limited access to credit and affordable infrastructure. With these measures, the initiative is expected to revolutionize Nigeria’s MSME sector, driving innovation, job creation, and sustainable economic growth as the nation progresses into 2025.
