By Atiku Sarki, Abuja
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has unveiled a N500 million zero-interest financing scheme for Micro, Small and Medium Enterprises (MSMEs) as part of efforts to improve access to finance and stimulate business growth across the country.
The Director-General of SMEDAN, Charles Odii, announced the initiative during the 2026 World MSMEs Day celebration held in Abuja at the weekend.
Odii said inadequate access to affordable financing remains one of the biggest obstacles to the growth of MSMEs despite the sector’s significant contribution to Nigeria’s economy.
He explained that the newly introduced Grow Fund for Small Businesses in Nigeria would operate as a revolving, zero-interest loan facility targeted at organised business groups rather than individual entrepreneurs.
According to him, the fund will be channelled through cooperatives, trade unions, business membership organisations and other recognised associations to promote transparency, improve loan recovery and ensure that genuine business owners benefit from the programme.
“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 said.
He noted that the financing scheme would help businesses strengthen their working capital, secure business premises and acquire equipment needed to expand operations.
Odii disclosed that the fund would be implemented in collaboration with state governments, development partners and other institutions willing to provide matching funds, while repayment arrangements would be jointly agreed with participating associations.
The SMEDAN boss also announced that the agency had secured a $12 million partnership with the Korean Government to establish a Central Enterprise Centre aimed at supporting one million MSMEs during the first term of President Bola Ahmed Tinubu.
He said the agency deliberately adopted innovative partnerships to accelerate enterprise development instead of relying solely on government bureaucracy.
“After delays in receiving land from the Minister of the FCT, SMEDAN decided to allocate part of its office land for the project to ensure the Korean funding was not lost,” he explained.
Odii expressed confidence that at least one million businesses would benefit from SMEDAN’s programmes before the end of the President’s first tenure.
He further disclosed that SMEDAN is reviewing the National MSME Policy, which will be submitted to President Tinubu after consultations with key stakeholders.
According to him, the proposed reforms include expanding access to single-digit interest loans, reserving 30 per cent of government procurement opportunities for MSMEs and removing age restrictions from government intervention programmes.
He also assured that the agency would continue engaging relevant regulatory institutions to resolve compliance issues affecting small businesses, including concerns over advertising registration requirements.
The Director-General urged state governments to partner with SMEDAN by establishing more Enterprise Development Centres to prepare Nigerian businesses to benefit from opportunities under the African Continental Free Trade Area.
He also called on the media to intensify public awareness of SMEDAN’s programmes, stressing that the agency would continue pursuing innovative partnerships to address financing, infrastructure and other challenges confronting MSMEs nationwide.
In his remarks, the Senior Special Assistant to the President on Industrial Training and Manpower Development, Adamson Ayinde, commended SMEDAN’s efforts in strengthening the MSME sector.
Ayinde pledged to work closely with the agency to advance the Renewed Hope Agenda through enterprise development, job creation and poverty reduction.
He emphasised that distributing government support through recognised organisations such as SMEDAN would improve accountability, monitoring and proper utilisation of intervention funds and equipment, noting that some beneficiaries of previous government empowerment programmes diverted or sold the items provided to them.
The 2026 World MSMEs Day celebration featured a road show and exhibition of innovative products and services.
The event attracted government officials, development partners, civil society organisations, the media and other stakeholders committed to advancing Nigeria’s MSME sector.