The Small and Medium Enterprises Development Agency of Nigeria
(SMEDAN) has unveiled a N500 million zero-interest Grow Fund for Micro,
Small and Medium Enterprises (MSMEs) in the country.
SMEDAN Director-General, Charles Odii, announced the initiative over the
weekend while briefing the media as part of activities by SMEDAN to mark the
2026 World MSME Day.
Odii said the revolving loan would be disbursed through cooperatives, trade
unions, business member organisations and associations rather than to
individual entrepreneurs.
According to him, the association-based model will improve accountability,
loan recovery and ensure the funds reach genuine business owners, adding that
the financing was designed to address one of the biggest challenges confronting
small businesses in Nigeria which is access to capital
“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 access the zero-interest funding to boost
working capital, procure workspaces and acquire tools required for their
businesses.
“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.
Odii said repayment terms would be agreed with each association, adding that
the flexible arrangement would allow the revolving fund to benefit more
entrepreneurs.
He said the initial N500 million would be expanded through partnerships with
state governments, development partners and other institutions willing to
provide matching funds.
The director-general also revealed that SMEDAN was reviewing the draft
National MSME Policy before forwarding it to President Bola Tinubu for
approval.