By Onu Okorie

Small and Medium Enterprises Development Agency of Nigeria SMEDAN has unveiled a N500 million zero-interest Grow Fund, aimed at improving access to finance for Micro, Small and Medium Enterprises MSMEs across the country.

Speaking

The Director-General of SMEDAN, Charles Odii, made this known in Abuja weekend during activities marking the 2026 World MSME Day.

He explained that the  revolving loan scheme would be disbursed through cooperatives, trade unions, business membership organisations and associations, rather than directly to individual entrepreneurs.

Odii also stated that the association-based lending model was designed to enhance accountability, improve loan recovery and ensure the funds reach genuine business owners.

“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.

He stated that the interest-free loans would strengthen the working capital of the beneficiaries, secure business premises and acquire tools needed to expand their enterprises.

“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,” Odii stated.

He added that repayment terms would be agreed upon with each participating association, noting that the flexible arrangement would enable the revolving fund to support more entrepreneurs over time.

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

Odii also announced that SMEDAN is reviewing the draft National MSME Policy before submitting it to President Bola Tinubu for approval.

He said another round of stakeholder consultations, including members of the Commerce and Industry Correspondents Association of Nigeria CICAN, would be held ahead of the policy’s planned launch in November.

He revealed that the proposed policy reforms include 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.

The director-general further pledged to engage relevant regulatory agencies on issues affecting small businesses, including concerns over advertising registration requirements.

He also called on state governments to collaborate with SMEDAN in establishing more enterprise development centres to better prepare Nigerian MSMEs to take advantage of opportunities under the African Continental Free Trade Area AfCFTA.

Also speaking, the Senior Special Assistant to the President on Industrial Training and Manpower Development, Adamson Ayinde, commended the association-based lending model, describing it as a practical approach to improving transparency and accountability.

Ayinde said that the channeling loans and business support through recognised associations would strengthen monitoring mechanisms and reduce the diversion of government-backed equipment and financial assistance.