Abuja: The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched a N500 million zero-interest Grow Fund for Micro, Small and Medium Enterprises (MSMEs) in the country. SMEDAN Director-General, Charles Odii, announced the initiative during an engagement with the Commerce and Industry Correspondents Association of Nigeria (CICAN) on Friday.
According to News Agency of Nigeria, the engagement was part of SMEDAN’s activities to mark the 2026 World MSME Day. Odii explained that the revolving loan will be disbursed through cooperatives, trade unions, business member organisations, and associations instead of individual entrepreneurs. This association-based model aims to improve accountability, ensure loan recovery, and guarantee that the funds reach genuine business owners.
Odii highlighted the initiative’s focus on addressing significant challenges that small businesses face in Nigeria, particularly in financing. “We visited traders at one of the markets today to engage directly with them because it is not enough to sit in offices and make policies without understanding their realities,” he said. Financing was a major concern raised by traders, which prompted the launch of the Grow Fund.
The fund will allow beneficiaries to access zero-interest financing to boost working capital, procure workspaces, and acquire necessary tools for their businesses. Odii emphasized that the funds would be given to associations that can manage them responsibly, rather than to individuals directly. Repayment terms will be agreed upon with each association, with a flexible arrangement to allow the revolving fund to benefit more entrepreneurs.
The initial N500 million is expected to expand through partnerships with state governments, development partners, and other institutions willing to provide matching funds. SMEDAN is also reviewing the draft National MSME Policy before forwarding it to President Bola Tinubu for approval. Stakeholders, including CICAN members, will participate in consultations to strengthen the policy before its planned launch in November.
Proposed reforms include single-digit interest loans for MSMEs, reserving 30 per cent of government procurement for small businesses, and removing age limits from intervention programs. Odii mentioned that the agency would engage relevant regulators on concerns affecting small businesses, such as advertising registration requirements. He urged state governments to collaborate with SMEDAN in establishing more enterprise development centres for preparing MSMEs for continental trade opportunities.
Adamson Ayinde, the Senior Special Assistant to the President on Industrial Training and Manpower Development, praised the association-based lending model, stating that working through recognized associations would enhance monitoring, accountability, and reduce the diversion of government-supported equipment and business loans.