A staggering 200,000 small-scale businesses have expressed their interest in accessing credit facilities worth N5 billion from the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in collaboration with Sterling Bank. The loan options, ranging from N250,000 to N2,500,000, come with a single-digit interest rate of nine percent, aiming to enhance financial access and stimulate the growth of small businesses.
Charles Odii, the Director-General of SMEDAN, referred to the partnership with Sterling Bank as an “important milestone” in their efforts to boost economic growth and prosperity by improving SMEs’ access to finance. The competitive interest rate is expected to support SMEs in expanding operations, hiring additional employees, and contributing to overall economic activities.
The loan agreement with Sterling Bank spans 24 months, with repayment scheduled to commence after a minimum period of three months, allowing small businesses to leverage the facility effectively.
The media aide to the SMEDAN Director-General, Peter Adeshina, provided an update, stating that successful applicants had been contacted by the bank through email. He mentioned that the bank had received thousands of applications, and the response was massive. The assessment process has commenced, and the applicants will receive information on the next steps, with disbursement expected to commence in a few days.
While SMEDAN and Sterling Bank move forward with the loan disbursement initiative, there has been a delay in the Federal Government’s N275 billion palliative loan promised to manufacturers and micro, small, and medium-sized enterprises. The slow pace of project implementation has raised concerns among prospective beneficiaries, with some expressing frustration over the lack of transparency in the process. The Association of Small Business Owners President, Femi Egbesola, criticized the slow data collation by supervising agencies, suggesting that genuine businesses were being discouraged from accessing the loans.
