FG, CBN collaborate to boost MSMEs with single-digit loans

From Juliana Taiwo-Obalonye, Abuja

The Federal Government, in an intensified effort to boost Micro, Small, and Medium Enterprises (MSMEs) in Nigeria, has entered into a strategic partnership with the Central Bank of Nigeria (CBN).

A newly formed committee will work to enhance financing options for small businesses, with a focus on providing access to single-digit interest rate loans.

Vice President Kashim Shettima emphasised the government’s commitment to supporting the growth of MSMEs, stating that collaboration with stakeholders is crucial.

In a statement issued by his media aide, Stanley Nkwocha, the National Council on MSMEs has established a committee to specifically engage with the CBN to improve financing accessibility for small businesses nationwide.

During the first National Council on MSMEs meeting of 2025, held at the Presidential Villa on Monday, Shettima highlighted the moral obligation of the government, its agencies, and partners to support the MSME sector and generate employment opportunities for Nigerians.

He stressed that the efforts of President Bola Tinubu’s administration to support small businesses require reinforcement from stakeholders, particularly the private sector.

The committee, headed by the Minister of State for Industry, Trade, and Investment, John Enoh, also includes the Ministers of Science and Technology, Women Affairs, and the Minister of State for Agriculture and Food Security, along with the Senior Special Assistant to the President on MSMEs.

CEOs from the Bank of Industry, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Bank of Agriculture (BOA), Nigeria Export-Import Bank (NEXIM Bank), Development Bank of Nigeria (DBN), Corporate Affairs Commission (CAC), Nigerian Investment Promotion Commission (NIPC), Nigerian Export Promotion Council (NEPC), and representatives from NACCIMA and the organised private sector are also part of the committee.

In addition to the committee, the council also approved a syndicated de-risked loan scheme for MSMEs, facilitating partnerships between state governments and financial institutions to enhance access to financing at single-digit rates across the country.

The federal government announced a N198 billion syndicated loan fund to support MSMEs across Nigeria, starting in the first quarter of 2025. This initiative aims to provide MSMEs with easier access to financing and foster entrepreneurship nationwide. The fund will offer single-digit loans with a 9% interest rate, providing Nigerian MSMEs with affordable credit options.

Shettima advised state governments to establish non-political entities to ensure the effective implementation of the loan scheme.

Mr. Temitola Adekunle-Johnson, the Senior Special Assistant to the President on MSMEs, described the syndicated de-risked loans as a potential game-changer for affordable business loans.

SMEDAN’s Director-General, Charles Odii, introduced the GROW Nigeria strategy, which emerged from a 3-day MSME conference in 2024. This initiative aims to support approximately 40 million small businesses across eight sectors with guidance, resources, and opportunities.

The government has pledged to provide free shops to deserving MSMEs, allowing them to transition from renters to shop owners. The Office of the Vice President will collaborate with the Federal Ministry of Finance to disburse grants of up to N400,000 to businesses nationwide.

To encourage job creation, the government will also require beneficiary businesses to train two individuals for a year, with the federal government covering the trainees’ salaries during this period.