 has launched a ₦500 million zero-interest Grow Fund to support MSMEs.){kind=link}
SMEDAN Launches ₦500m Zero-Interest Fund for MSMEs
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched a ₦500 million zero-interest Grow Fund to support micro, small, and medium enterprises (MSMEs).
Director-General Charles Odii announced the initiative during activities marking World MSME Day 2026, explaining that the revolving loan would be disbursed through cooperatives, trade unions, and business associations rather than directly to individuals.
“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,” Odii said.
He noted that the model would improve accountability, ensure loan recovery, and guarantee that genuine business owners benefit.
The fund is designed to tackle one of the biggest challenges facing MSMEs — access to affordable capital.
Beneficiaries will be able to use the financing to boost working capital, procure workspaces, and acquire tools needed for their businesses.
Repayment terms will be flexible and agreed upon with each association to allow the revolving fund to reach more entrepreneurs.
Odii added that the initial ₦500m would be expanded through partnerships with state governments, development partners, ,and institutions willing to provide matching funds.
He also revealed that SMEDAN is reviewing the draft National MSME Policy, which will soon be forwarded to President Bola Tinubu for approval.
“It is not enough to sit in offices and make policies without understanding realities. Many of the challenges traders raised border on financing, which is why we are launching the Grow Fund,” Odii explained.