The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched a ₦500 million zero-interest revolving loan fund aimed at supporting Micro, Small and Medium Enterprises (MSMEs) across the country.
The initiative, known as the Grow Fund for Small Businesses in Nigeria, was unveiled in Abuja by the Director-General of SMEDAN, Charles Odii, as part of activities marking the 2026 World MSME Day.
According to Odii, the fund will be disbursed through cooperatives, trade unions, business member organisations and recognised associations instead of individual entrepreneurs. He explained that the approach is designed to improve accountability, ensure effective loan recovery and guarantee that the funds reach genuine business owners.
Speaking during an engagement with traders, Odii said access to affordable financing remains one of the biggest challenges facing small businesses in Nigeria.
He noted that beneficiaries would be able to use the interest-free loans to expand their working capital, acquire business tools and secure workspaces needed for growth.
The SMEDAN boss added that repayment plans would be agreed upon with each association, allowing the revolving fund to continue benefiting more entrepreneurs over time.
Odii also disclosed that the initial ₦500 million fund is expected to grow through partnerships with state governments, development partners and other institutions willing to provide matching funds.
He further revealed that SMEDAN is reviewing the draft National MSME Policy before forwarding it to President Bola Tinubu for approval. The proposed reforms include single-digit interest loans for MSMEs, reserving 30 per cent of government procurement for small businesses and removing age limits from intervention programmes.
In addition, the agency pledged to engage relevant regulators on concerns affecting small businesses, including advertising registration requirements.
