The federal government has announced a groundbreaking initiative to strengthen Micro, Small, and Medium Enterprises (MSMEs) across Nigeria with a ₦198 billion syndicated loan fund. The program, starting in the first quarter of 2025, is designed to foster entrepreneurship and economic growth nationwide.
Key Highlights of the Initiative
- Single-Digit Loan Scheme:
MSMEs can access loans at a 9% interest rate, with favorable terms including a five-year tenure and a one-year moratorium. - Loan Size and Scope:
MSMEs will be eligible for loans of up to ₦100 million, ensuring accessible financing options for businesses across all states. - Grants and Ownership Opportunities:
- Businesses will receive grants of up to ₦400,000 to support their operations.
- Selected MSMEs will be provided with free shops and other resources, transitioning them from renters to shop and home owners.
- Job Creation Through Training:
Beneficiary businesses must train two individuals for one year, with the federal government covering the trainees’ salaries. This approach aims to create a ripple effect in job creation and skills development.
A Shift to Sustainable Financing
Speaking at the 2024 End of the Year Economic Review Technical Workshop in Abuja, Temitola Adekunle-Johnson, Senior Special Assistant on Job Creation and MSMEs, highlighted the government’s focus on sustainability:
“We are moving away from one-off grants to structured, sustainable financing that empowers MSMEs to grow, innovate, and contribute to the economy effectively.”
He assured that the initiative would reach MSMEs across Nigeria, whether in Kebbi, Plateau, or any other state.
Broader Economic Impact
The initiative is part of a comprehensive strategy to revolutionize Nigeria’s MSME sector, addressing challenges such as limited access to credit and affordable infrastructure. It aligns with the government’s vision to enhance entrepreneurship and stimulate economic activity.
The collaborative effort with state governments underscores a unified approach to empowering businesses and creating opportunities nationwide.
As Nigeria enters 2025, this robust support system for MSMEs is poised to transform the sector, driving innovation, job creation, and sustainable economic growth.
