The Federal Government has announced a “N198 billion syndicated loan (fund)” to support Micro, Small, and Medium Enterprises (MSMEs) in the country, starting from the first quarter of 2025.
Temitola Adekunle-Johnson, Senior Special Assistant on Job Creation and MSMEs, made the announcement on Friday during the ‘2024 End of the Year Economic Review Technical Workshop’ at the Banquet Hall in Abuja, which was attended by Nairametrics analysts.
He said the fund is designed to ensure that MSMEs across the states have access to single-digit loans at a 9% interest rate.
Building Capacities of SMEs
Adekunle-Johnson explained that the N198 billion syndicated fund for MSMEs is being developed in partnership with all the state governments.
“And what is this fund for? This fund is designed to ensure that Nigerian MSMEs, from the first quarter of next year, across different states—whether you are in Kebbi or Plateau—have access to a single-digit loan at 9%,” he said.
- He added that the federal government cannot continually provide grants, as beneficiaries are unsure of when and where the next grant (e.g., N500,000) will come from.
- He emphasized that the government’s goal is to create an enabling environment that fosters ease of doing business, allowing small businesses and entrepreneurs to thrive.
“Once we create an environment that allows SMEs to walk into a bank and access up to N100 million, for example, with a reasonable loan tenure of maybe five years and a moratorium of one year, we will begin to build the capacity of these MSMEs to think outside the box,” he explained.
- He assured that, with the N198 billion fund and the various job creation initiatives planned for next year, “we will revolutionize a lot of things in this space.”
- He also reminded everyone that the federal government will be providing free shops, not for rent, to deserving MSMEs.
“They are going to start owning shops. Some of these MSMEs will come from different states as finalists, paying rent; when they return, they will return as shop owners. Some will come here and go back to their states as homeowners.”
“We already have all the houses, shops, and cars that we will be giving to MSMEs, all signed, sealed, and delivered,” he said.
More Insights on Grants
Furthermore, Adekunle-Johnson disclosed that the Office of the Vice President will work directly in partnership with the Federal Ministry of Finance to give massive grants to businesses and MSMEs to support their growth in 2025.
“Grants of up to N400,000 per SME will be given to support their businesses across the country. This is not limited to the FCT or some regional or sub-regional areas; it is for the entire country,” he said.
- He stressed that the government will require the identified businesses to train two people for a year, and the federal government will pay the two trainees’ salaries for the year.
He described this initiative as one of the federal government’s biggest strategies for promoting business and entrepreneurship growth in 2025.
What You Should Know
This development is part of the Nigerian government’s efforts to grow the economy.
- A few days ago, the government announced a significant increase in its loan offerings for small businesses, raising the maximum amount accessible under single-digit interest loans to N5 million.
- The initiative, aimed at fostering inclusive economic growth, was unveiled by the Bank of Industry (BoI) Managing Director, Dr. Olasupo Olusi, during a town hall sensitization event in Lagos last Friday.
- Speaking on behalf of Olusi, Umar Shekarau, Executive Director for MSMEs at BoI, highlighted the government’s commitment to supporting MSMEs.
- The initiative is backed by a N200 billion Presidential Intervention Fund, with N75 billion specifically allocated for MSMEs.
Temitola Adekunle-Johnson, Senior Special Assistant to the President on Job Creation and MSMEs, confirmed that the increase in loan size—from the previous cap of N1 million to N5 million—aims to address the financial and infrastructural challenges faced by small businesses.
