SMEDAN Announces N500 Million Zero‑Interest Fund for MSMEs

By Yinka Kolawole

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has announced the Grow Fund for Small Businesses in Nigeria, a N500 million zero‑interest fund aimed at supporting Micro, Small and Medium Enterprises (MSMEs) across the country.

SMEDAN Director‑General Charles Odii revealed the initiative in Abuja as part of the celebrations for World MSME Day 2026.

Odii explained that the revolving loan will be distributed through cooperatives, trade unions, business member organisations and associations rather than directly to individual entrepreneurs.

He said the association‑based model would enhance accountability, improve loan recovery, and ensure the money reaches legitimate business owners, addressing one of the biggest challenges faced by small businesses in Nigeria.

“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 added that beneficiaries would be able to use the zero‑interest fund to boost working capital, acquire workspaces and purchase tools necessary for their operations.

“We are not giving the money to individuals directly. We are giving it to associations that understand their members and can manage the funds responsibly,” he said.

He said repayment terms would be negotiated with each association, with the flexible arrangement intended to allow more entrepreneurs to benefit from the revolving fund.

The SMEDAN chief noted that the initial N500 million would be expanded through partnerships with state governments, development partners and other institutions willing to provide matching funds.

Odii also mentioned that SMEDAN is reviewing the draft National MSME Policy before submitting it to President Bola Tinubu for approval. The proposed reforms include single‑digit interest loans for MSMEs, reserving 30 percent of government procurement for small businesses and removing age limits from intervention programmes.

He said the agency will also engage relevant regulators on issues affecting small businesses, such as advertising registration requirements.