Source: Businessday NG
The Federal Government has unveiled a transformative initiative to boost Micro, Small, and Medium Enterprises (MSMEs) across Nigeria with a ₦198 billion syndicated loan fund. Set to commence in the first quarter of 2025, the program is designed to stimulate entrepreneurship and accelerate economic development nationwide.
MSMEs will benefit from loans at an affordable 9% interest rate, offering flexible terms that include a five-year repayment period and a one-year moratorium.
Businesses across all states will be eligible for loans of up to ₦100 million, ensuring widespread access to financial resources.
In addition to loans, MSMEs will receive grants of up to ₦400,000 to enhance their operations. Selected enterprises will also gain access to free shops and resources, enabling many to transition from renters to shop and home owners.
Beneficiary businesses must train two individuals for one year, with the Federal Government covering the trainees’ salaries. This innovative requirement is designed to drive job creation and skills development, creating a ripple effect throughout the economy.
At the 2024 End-of-Year Economic Review Technical Workshop in Abuja, Temitola Adekunle-Johnson, Senior Special Assistant on Job Creation and MSMEs, underscored the government’s shift towards long-term financial sustainability.
“We are shifting from one-off grants to structured and sustainable financing models that empower MSMEs to expand, innovate, and contribute meaningfully to the economy,” she stated.
She also assured that the initiative would reach businesses nationwide, ensuring no state—whether Kebbi, Plateau, or elsewhere—is excluded.
This initiative is part of a broader strategy to overhaul Nigeria’s MSME sector by addressing key challenges such as limited access to credit and affordable infrastructure. It aligns with the government’s vision to promote entrepreneurship, drive economic activity, and create opportunities for all Nigerians.
A collaborative approach with state governments further emphasizes a unified effort to strengthen the MSME sector and foster nationwide development.
As Nigeria heads into 2025, this groundbreaking initiative is expected to revolutionize the MSME landscape, spurring innovation, job creation, and sustainable economic growth.
