The Coalition of Microlending and Cooperative Institutions in Nigeria has officially moved to bridge the financing gap for small businesses with the unveiling of a ₦100 million joint loan facility.
The initiative, launched in partnership with NEAT Microcredit, is specifically designed to bypass the traditional barriers of commercial banking by utilising a network of grassroots micro-lending institutions to reach the country’s most vulnerable but industrious economic players.
The facility targets the informal sector, where micro-entrepreneurs often struggle to secure capital due to stringent collateral requirements from larger banks.
By funnelling the ₦100 million through participating Microfinance Institutions, COMCIN ensures that the funds reach those at the very base of the economic pyramid.
Speaking on behalf of the Chairman, Dr Iredele Oyedele, the Executive Director of COMCIN, Mr Micheal Ogbaa, emphasised that the coalition’s strength lies in its proximity to the people.
“Commercial banks often exclude people at the grassroots, but our members are positioned to reach them.”
This facility will empower them to do more,” Ogbaa stated.
One of the most striking features of the scheme is its demographic target. Approximately 90 per cent of the beneficiaries are women, whom COMCIN identifies as the primary drivers of family stability and local commerce.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” Ogbaa added.
The scheme offers low interest rates and flexible repayment plans, with eligible SMEs, those with proven integrity and business track records, able to access up to ₦5 million each.
While the rollout has commenced in Lagos, the pilot phase is already expanding to Abuja and Enugu, with further plans to penetrate the South-West, South-East, and North-East regions.
Currently, twelve micro-lending institutions have already benefited from the scheme, and 85 additional applications are being processed. However, the ₦100 million fund is just the beginning of a much larger vision.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa noted.
As the pilot phase demonstrates transparency and efficiency, COMCIN intends to attract larger funding pools from international development finance institutions and private investors.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he concluded.
The PUNCH