The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has unveiled a N500 million zero-interest revolving fund to support Micro, Small and Medium Enterprises (MSMEs) across the country.
SMEDAN Director-General, Charles Odii, announced the Grow Fund for Small Businesses in Nigeria in Abuja as part of activities marking the 2026 World MSME Day.
Odii said the fund would be disbursed through cooperatives, trade unions, business membership organisations and associations rather than directly to individual entrepreneurs.
According to him, the association-based model is intended to improve accountability, strengthen loan recovery and ensure the funds reach genuine business owners.
He said the initiative was designed to address one of the biggest challenges facing small businesses—access to finance.
“We are not giving the money to individuals directly. We are giving it to associations that understand their members and can manage the funds responsibly,” he said.
Beneficiaries, he added, will be able to access the interest-free loans to boost working capital, acquire tools and equipment, and secure business premises.
Odii said repayment terms would be agreed with each participating association to ensure flexibility and allow the revolving fund to benefit more entrepreneurs.
He added that the initial N500 million fund would be expanded through partnerships with state governments, development partners and other institutions willing to provide matching funds.
The SMEDAN boss also disclosed that the agency was reviewing the draft National MSME Policy ahead of its submission to President Bola Tinubu for approval.
He said the proposed policy includes single-digit interest loans for MSMEs, reserving 30 per cent of government procurement for small businesses and removing age limits from intervention programmes.
Odii added that SMEDAN would continue engaging relevant regulators to address policy concerns affecting small businesses, including advertising registration requirements.
