SMEDAN set to disburse N500m interest free loan to MSMEs

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is set to disburse N500 million zero interest Grow Fund for Micro Small and Medium Enterprises MSMEs in Nigeria.

The Director General, SMEDAN, Charles Odii disclosed this while briefing the press as part of activities by SMEDAN to mark the 2026 World MSME Day in Abuja, stating that the revolving loan will be disbursed through cooperatives, trade unions, business member organisations and associations rather than to individual entrepreneurs.

He said: “The association-based model will improve accountability, loan recovery and ensure the funds reach genuine business owners, this financing was designed to address one of the biggest challenges confronting small businesses in Nigeria which is access to capital

“We visited traders at one of the markets to engage directly with them because it is not enough to sit in offices and make policies without understanding their realities. Many of the challenges they raised border on financing, which is why we are launching the Grow Fund for Small Businesses in Nigeria.

“Beneficiaries will also be able to access the zero-interest funding to boost working capital, procure workspaces and acquire tools required for their businesses, we are not giving the money to individuals, We are giving it to associations that understand their members and can manage the funds responsibly”.

He added that repayment terms would be agreed with each association as flexible arrangement would allow the revolving fund to benefit more entrepreneurs, again this initial N500 million would be expanded through partnerships with state governments, development partners and other institutions willing to provide matching funds. He said the agency is reviewing the draft National MSME Policy before forwarding it to President Bola Tinubu for approval.