FG to Introduce New Initiative for SMEs To Easily Secure Loan for Business
- The Nigerian government is ready to work with First City Monument Bank (FCMB) to provide loan facilities for SMEs
- The initiative aims to improve SMEs' access to credit, which has been a long-standing challenge for small businesses
- The disbursement of business loans will be carried out in collaboration with the Bank of Industry (BOI) to ensure efficiency
The Federal Government has announced a new initiative that will give Small and Medium Enterprises (SMEs) across the country easy access to credit facilities.
The initiative was unveiled by John Enoh, the Minister of State for Industry, Trade, and Investment during the Renewed Hope Global Virtual Conference 2025.
Source: UGC
According to Enoh, the new initiative is part of a broader effort to boost entrepreneurship, strengthen industrial growth, and enhance Nigeria’s economic competitiveness.
In his address, the minister acknowledged the persistent challenges small businesses face when seeking loans, particularly from commercial banks.
He noted that the government is committed to addressing these difficulties.
Government easy access to credit
Enoh also revealed that the federal government will partner with First City Monument Bank (FCMB) to achieve its objective of making it easy for micro and small enterprises to secure funding.
He added that the initiative will be launched in the coming weeks and is expected to provide financial relief to thousands of small business owners nationwide, ThisDay reports.
The minister said:
"In the coming weeks, we expect to announce a collaboration that will enable thousands of small business owners to access funding more easily.
"This initiative aligns with the government’s broader economic policies aimed at fostering sustainable development and reducing the barriers that have historically hindered SME growth."
Enoh added that the Bank of Industry (BOI) will be a crucial institution in this initiative.
He described BOI as one of the country’s most effective agencies but acknowledged that many SMEs still struggle to navigate its loan processes.
He stated:
“The BOI has been instrumental in supporting businesses, but I recognise the hurdles many small enterprises face in accessing loans."
"To address these concerns, the government is actively working with BOI to simplify loan requirements and speed up the disbursement process.
"This effort aims to ensure that SMEs, which form the backbone of the Nigerian economy, receive the financial support needed to thrive."
Beyond direct financial support, the minister stated that the government’s broader strategy is to stimulate industrial expansion, facilitate access to capital, and drive digital transformation in key sectors.
Bank MD calls for special banks for MSMEs over high interest rates
Legit.ng reported that the managing director/Chief Executive Officer of Fidelity Bank Plc, Nneka Onyeali-Ikpe, said that Micro, Small and Medium Enterprises (MSMEs) can't survive doing business in Nigeria by borrowing at the current interest rates.
She disclosed at a recent event in Abuja that medium and small businesses cannot survive doing business with the current interest rate.
According to her, the country needs more developmental financial institutions like DBN, Bank of Industry, and Bank of Agriculture to ensure the agencies are well-handled. SMEs cannot do business, which will affect GDP growth.
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Source: Legit.ng
