The Nigerian government has announced plans to launch a de-risking fund in May 2025, aimed at easing access to affordable loans for Micro, Small, and Medium Enterprises (MSMEs) across the country. The move comes amid growing concerns over soaring lending rates—some reaching as high as 30%—which continue to stifle the growth of small businesses.
The announcement was made by the Special Adviser to the President on Job Creation and MSMEs at the 2025 International Women’s Day event organised by the Nigerian Association of Small and Medium Enterprises (NASME) in Abuja. He described the fund as part of broader efforts by the Tinubu administration to address systemic financing barriers faced by MSMEs.
The fund will function as a risk-sharing mechanism, enabling collaboration between state governments and commercial banks to offer loans at significantly reduced interest rates. While no specific rate has been disclosed, the government maintains that the new structure will be far more favourable than the current market offerings.
According to the adviser, the de-risking fund will also cushion small businesses against the adverse effects of international trade dynamics, including the 14% tariff recently imposed by the United States on select Nigerian products.
Alongside this initiative, the Federal Government plans to expand its network of MSME shared facility hubs. These hubs, equipped with international-standard tools in areas such as ICT, agriculture, and fashion, are designed to boost productivity and competitiveness. So far, 10 hubs have been launched, with 8 to 10 more expected by the end of the year. Each hub reportedly provides uninterrupted power and supports up to 200 entrepreneurs daily, charging as little as N1,000 per day. More than 120,000 MSMEs are said to have benefited from the initiative over the past year. Though privately operated, these hubs are supervised by the government to ensure transparency.
At the event, NASME President called for increased government support for women-led businesses, pointing to World Bank data showing women make up 55% of the global workforce and are central to MSME development and economic growth. He highlighted challenges such as limited access to finance, markets, capacity-building resources, and effective governance as persistent barriers for women entrepreneurs.
NASME’s National Women Coordinator added her voice, urging the government and financial institutions to act swiftly and intentionally. She stressed the importance of targeted support structures and strong implementation, noting that while policy frameworks exist, enforcement remains weak.
