The Federal Government has announced plans to start disbursing single-digit interest loans to Small and Medium Enterprises (SMEs) by the third quarter of 2025. This initiative, aimed at fostering growth and reducing financial barriers for small businesses, was revealed by the Senior Special Assistant on Job Creation and MSMEs, Temitola Adekunle-Johnson, during a Nationwide Townhall and Sensitization Programme on the Presidential Grant and Loan Scheme for MSMEs held on Tuesday in Abuja.
Adekunle-Johnson explained that MSMEs play a crucial role in Nigeria’s economy, employing over 80 percent of the nation’s labor force and contributing close to half of the national GDP. Despite their importance, many SMEs face difficulties accessing affordable loans due to high-interest rates, a challenge worsened by the Central Bank of Nigeria’s recent policy rate hikes, with the Monetary Policy Rate (MPR) currently at 27.25 percent. High collateral demands by banks also make it difficult for many small businesses to secure loans.
In response, the Federal Government has partnered with several banks, including Access Bank, Wema Bank, and the Bank of Industry, to make low-interest financing more accessible. Adekunle-Johnson highlighted that this program will roll out across all states by the third quarter of 2025, providing SMEs with the capital they need to operate and expand in a more supportive financial environment.
“The presidency is working closely with our commercial partners to bring single-digit loans to small businesses nationwide,” he stated, adding that 18 state governments have already committed to implementing the program at the sub-national level in collaboration with the Bank of Industry and other commercial banks.
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Adekunle-Johnson emphasized that the program is designed to provide SMEs with a reliable and straightforward financing pathway. “We aim to create an environment where a small business owner can confidently approach a bank, access affordable loans, grow their business, and repay with dignity,” he added.
The Minister of Information and National Orientation, Mohammed Idris, who also addressed the audience, reinforced the government’s commitment to supporting SMEs as part of its broader economic reform agenda. He acknowledged the challenges posed by recent economic policies but assured that intervention programs, such as the single-digit loan facilities, are in place to support small businesses through this transitional phase.
Idris highlighted the government’s various financial interventions, including the N200 billion loans and grants initiative, which has provided N50 billion in one-off conditional grants to the nano-business segment of the MSMEs. Further phases will focus on micro, small, and medium businesses, with an additional N75 billion designated for larger manufacturers.
In an effort to streamline access to these funds, the Minister emphasized that the Tinubu administration’s Social Intervention Programmes require only the submission of applications—no political connections or insider knowledge are necessary. To ensure nationwide reach and responsiveness, town hall meetings are being conducted simultaneously across Nigeria’s six geo-political zones, gathering feedback and increasing awareness about these financial opportunities.
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