The Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, has introduced a N500 million interest-free revolving fund aimed at expanding access to affordable financing for micro, small and medium enterprises, MSMEs, across the country.
Director-General of SMEDAN, Charles Odii, announced the initiative on Friday in Abuja during an interactive session with members of the Commerce and Industry Correspondents Association of Nigeria, CICAN, held as part of activities marking the 2026 World MSME Day.
The scheme which is different from a conventional loan, will be channelled through registered cooperatives, trade associations, business membership organisations and unions rather than directly to individual entrepreneurs.
Odii explained that the association-based approach was designed to strengthen transparency, improve loan recovery and ensure the intervention reaches genuine business owners.
“Today, we visited traders in one of the markets because policymaking must be informed by the realities of those we serve. One of the most pressing concerns they raised was access to finance, and that informed the launch of the Grow Fund for Small Businesses in Nigeria,” he said.
According to him, beneficiaries will be able to access the interest-free loans to strengthen working capital, acquire business tools and equipment, and secure suitable workspaces needed to expand their operations.
“We are entrusting the funds to associations that understand their members and are better positioned to manage the facilities responsibly, rather than disbursing directly to individuals,” Odii added.
He noted that repayment plans would be determined in collaboration with each participating association, allowing the revolving fund to continue supporting more entrepreneurs over time.
Odii further disclosed that SMEDAN intends to scale up the initiative by partnering with state governments, development agencies and other institutions willing to provide counterpart funding.
Beyond the financing programme, the agency is also reviewing the draft National MSME Policy ahead of its submission to President Bola Tinubu for approval.
He said another round of stakeholder consultations, including with CICAN members, would be held before the policy is officially launched in November.
Among the proposed reforms are the introduction of single-digit interest loans for MSMEs, reserving 30 per cent of government procurement opportunities for small businesses and removing age restrictions from government intervention programmes.
The SMEDAN boss also pledged to engage relevant regulatory agencies on issues affecting the operating environment for small businesses, including concerns over advertising registration requirements.
He called on state governments to collaborate with SMEDAN in establishing more enterprise development centres to equip Nigerian businesses for opportunities under the African Continental Free Trade Area, AfCFTA.
Also speaking, the Senior Special Assistant to the President on Industrial Training and Manpower Development, Adamson Ayinde, endorsed the association-driven lending framework, describing it as a practical strategy for improving accountability and reducing the diversion of government-backed loans and business support equipment.
