In a strategic move to tackle the credit barriers facing small businesses in Nigeria, the Federal Government has announced plans to launch a De-risking Fund in May, aimed at improving access to affordable loans for Micro, Small, and Medium Enterprises (MSMEs).
Temitola Adekunle-Johnson, Special Adviser to the President on Job Creation and MSMEs, revealed the initiative during an event hosted by the Nigerian Association of Small and Medium Enterprises (NASME) in Abuja.
According to him, the fund is part of a broader financial reform strategy to address the prohibitive lending rates in Nigeria—currently between 28% and 30%—which have severely hindered SME growth and sustainability.
“We are rolling out two major schemes, with the de-risking fund being central to our goal of making credit more accessible and affordable for MSMEs,” Adekunle-Johnson stated.
He also emphasized plans to deepen partnerships between state governments and commercial banks to bring down interest rates and build a more inclusive financial system.
As part of the administration’s wider MSME support agenda, he announced that the number of MSME hubs across Nigeria will be doubled from 10 to 20 by the end of the year, offering expanded access to essential resources and services for small businesses.
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Reacting to the announcement, NASME President Dr. Abdulrashid Yerima commended the initiative, describing it as a game-changer for Nigeria’s SME landscape. However, he stressed the importance of designing targeted support for women-led enterprises, identifying access to finance, market penetration, and capacity development as critical areas requiring attention.
Yerima affirmed that the de-risking fund holds great promise for unlocking the full potential of the SME sector, which remains a cornerstone of job creation and economic resilience in the country.
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