“Accessible and affordable”, FG rolls out funding for SMEs, announces date

• One of the most commonly identified challenges to small businesses is access to credit needed to scale
• The federal government has taken a bold step to solve this for SMEs in Nigeria by creating a de-risking fund
• Thanks to the fund, small business owners can expect to get access to funding from the date of launch

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Several surveys have identified access to finance as a key problem hindering the growth of micro, small, and medium enterprises in Nigeria.

In a bid to address this issue, the federal government has announced that it will launch a de-risking fund.

This fund will serve a single purpose – to make MSME loans more affordable and accessible.

Speaking about the initiative at an event organised by the Nigerian Association of Small and Medium Enterprises, Special Adviser to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, noted that it will launch in May, 2025.

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Adekunle-Johnson explained that the intervention became necessary because high lending rates in the country have made it difficult for small business owners to access credit to scale or grow their business.

Legit.ng reported that even though the benchmark interest rate is pegged at 27.50%, several banks in the country were offering loans to business owners at rates as high as 39%, making it almost impossible for them to cope.

FG to launch de-risking fund for MSMEs

Providing more insight into the initiative, Adekunle-Johnson noted that there would be improved collaboration between commercial banks and the governments at different levels to create a more inclusive financial system where SMEs can access affordable credit.

He also disclosed that there are ongoing plans to create an additional 10 MSME hubs across the country before the end of 2025, the PUNCh reports.

NASME President, Dr Abdulrashid Yerima lauded the de-risking fund scheme, describing it as a significant step to help unlock the full potentials of small and medium scale businesses in Nigeria.

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He reiterated the importance of the scheme, noting that it would trigger job creation and help Nigeria on the drive to diversify from oil.

Yerima also urged the government to consider specific and targeted intervention programmes for women-owned businesses.

An earlier report from Legit.ng revealed that funding for female-led businesses has reached an all-time low, with female CEOs only raising $48 million across Africa in 2024, while their male counterparts raised $2.2 billion.

FG receives 60,000 applications for MSME awards

In related news, the portal for the submission of applications for the 2025 National MSME Awards opened on Friday, March 7, 2025, following a press conference by the Awards Committee.

Three weeks later, Legit.ng confirmed that over 60,000 applications had been received from small business owners with agricultural-based enterprises leading the pack.

Winners of the award will reportedly go home with about N700 million worth of prizes, including cars, shops, and houses.

Source: Legit.ng