The Federal Government has announced plans to launch a de-risking fund in May 2025 to improve access to affordable financing for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria.
Special Adviser to the President on Job Creation and MSMEs, Mr Temitola Adekunle-Johnson, made this known on Saturday at the 2025 International Women’s Day event organised by the Nigerian Association of Small and Medium Enterprises (NASME) in Abuja, as reported by the News Agency of Nigeria (NAN).
He said the initiative is part of the Tinubu administration’s plan to address high lending rates—currently as high as 28% to 30%—which continue to stifle MSME growth.
“In the month of May, we are going to be launching two very important schemes. One is the de-risking fund for SMEs.
“We are encouraging state governments and our commercial banks to come together to ensure that SMEs are able to get loan facilities for less than the ridiculous 28% or 30%,” he stated.
Adekunle-Johnson said the fund would operate as a risk-sharing mechanism, allowing state governments and banks to jointly provide loans at lower interest rates. While he did not commit to a specific rate, he said the goal is to offer much lower rates than what is currently available in the market.
He added that the de-risking fund would also serve as a buffer for small businesses facing the impact of international trade challenges, such as the 14% tariff imposed by the United States on certain Nigerian goods.
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The Federal Government also announced plans to expand its network of MSME shared facility hubs across the country, aiming to provide small businesses with affordable access to international-standard equipment in sectors such as ICT, agriculture, and fashion.
These hubs are part of a broader initiative to enhance productivity and competitiveness among micro, small, and medium-sized enterprises.
Adekunle-Johnson said 10 hubs have been established so far, with plans to add 8–10 more by year-end, bringing the total to around 20.
- He noted that each hub charges as little as N1,000 daily, offers uninterrupted power, and can support up to 200 entrepreneurs a day. Over 120,000 MSMEs reportedly benefited from the initiative in the past year. The hubs are privately operated under government oversight to ensure transparency.
- The NAN report further stated that the President of NASME, Dr Abdulrashid Yerima, called for more targeted government support for women-owned businesses. Citing a World Bank report, he noted that women comprise 55% of the global workforce and play a vital role in MSME development and national economic growth.
- He pointed to major challenges facing women entrepreneurs, including limited access to finance, markets, capacity building, and effective governance. NASME, he said, is actively partnering with development organisations and financial institutions to tackle these issues.
Echoing these concerns, NASME’s National Women Coordinator, Dr Beatrice Benjamin, urged swift and deliberate action from both the government and financial institutions. She stressed the need for tailored support models and infrastructure, noting that while policies exist, implementation remains weak.
