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The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has unveiled a N500 million zero-interest Grow Fund to improve access to affordable financing for Micro, Small and Medium Enterprises (MSMEs) across the country
The initiative was announced by the Director-General of SMEDAN, Charles Odii, during an engagement with members of the Commerce and Industry Correspondents Association of Nigeria (CICAN) in Abuja. The event formed part of activities marking the 2026 World MSME Day
Unlike traditional lending programmes, the revolving loan will be disbursed through cooperatives, trade unions, business membership organisations and other recognised associations rather than directly to individual entrepreneurs
According to Odii, the association-based model is designed to improve accountability, strengthen loan recovery and ensure the funds reach genuine business owners who need support to expand their enterprises
He explained that the agency introduced the fund after engaging directly with traders to better understand the realities facing small businesses
“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
“Many of the challenges they raised border on financing, which is why we are launching the Grow Fund for Small Businesses in Nigeria,” he said
Odii said beneficiaries would be able to use the interest-free financing to increase working capital, secure business premises and purchase tools and equipment needed to grow their businesses
Beyond the Grow Fund, the SMEDAN boss disclosed that the agency is reviewing the draft National MSME Policy before forwarding it to President Bola Tinubu for approval
He said another round of stakeholder consultations, including engagements with members of CICAN, would be held before the policy is launched in November
Among the proposed reforms are the introduction of single-digit interest loans for MSMEs, reserving 30 per cent of government procurement opportunities for small businesses and removing age restrictions from government intervention programmes
Odii also said SMEDAN would engage relevant regulatory agencies to address concerns raised by entrepreneurs, including advertising registration requirements that affect small businesses
He further called on state governments to partner with the agency in establishing more enterprise development centres to equip MSMEs for opportunities under the African Continental Free Trade Area (AfCFTA) and other regional markets
The Senior Special Assistant to the President on Industrial Training and Manpower Development, Adamson Ayinde, praised the association-based lending approach, saying it would strengthen monitoring, improve accountability and reduce the diversion of government-backed business loans and equipment
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