The federal government has announced a ₦198 billion syndicated loan fund to support Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, starting in the first quarter of 2025.
This initiative, developed in partnership with all state governments, aims to provide MSMEs with easier access to financing and foster entrepreneurship nationwide.
According to BusinessDay, Temitola Adekunle-Johnson, senior special assistant on job creation and MSMEs, made the announcement on Friday during the ‘2024 End of the Year Economic Review Technical Workshop’ held in Abuja.
Adekunle-Johnson explained that the fund would offer single-digit loans with a 9% interest rate, providing Nigerian MSMEs with affordable credit options. “This fund is designed to ensure that Nigerian MSMEs, from the first quarter of next year, across different states, whether you are in Kebbi or Plateau, have access to a single-digit loan at 9%,” he stated.
He emphasised the government’s shift from one-off grants to sustainable financing mechanisms, enabling MSMEs to access loans of up to N100 million with favorable terms, including a five-year tenure and a one-year moratorium. According to him, this approach will empower MSMEs to grow, innovate, and contribute to the economy more effectively.
In addition to the syndicated fund, he said the government has pledged to provide free shops to deserving MSMEs, allowing them to transition from renters to shop owners. Adekunle-Johnson revealed that housing, shops, and vehicles have already been secured for this initiative.
“These MSMEs will return to their states not just as business operators but as shop and even homeowners. We already have all the houses, shops, and cars signed, sealed, and delivered,” he assured.
He added that the Office of the Vice President will collaborate with the Federal Ministry of Finance to disburse grants of up to N400,000 to businesses nationwide. These grants aim to further support MSMEs and stimulate entrepreneurship.
To encourage job creation, the government will also require beneficiary businesses to train two individuals for a year, with the federal government covering the trainees’ salaries during this period.
“This is one of our biggest strategies for promoting business and entrepreneurship growth in 2025,” Adekunle-Johnson stated, expressing confidence that the initiatives will revolutionize the MSME sector and significantly boost the Nigerian economy.
