FG Begins Disbursement of N75 Billion Loan to Support MSMEs Nationwide

The Federal Government has launched a N75 billion loan disbursement for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, aiming to empower local businesses through accessible financing. Administered by the Bank of Industry (BoI), this initiative is designed to support MSMEs in adapting to economic challenges, particularly following the recent fuel subsidy removal.

Supporting MSMEs Nationwide

Mr. Tola Adekunle-Johnson, the Senior Special Assistant to the President on Job Creation and MSMEs, announced this development during a town hall meeting in Abuja. This meeting, held in various states like Ogun, Bauchi, Enugu, and Kaduna, focused on educating MSMEs on how to access these loans. Mr. Adekunle-Johnson emphasized that MSMEs can apply for this fixed-rate, single-digit loan of 9% interest at any BoI branch, ensuring transparency and preventing hidden fees.

According to Adekunle-Johnson, the primary goal of the town hall meeting was to raise awareness of the loan program so that business owners could apply directly, bypassing intermediaries who might otherwise take advantage of them. “This is the only single-digit loan you can get up to N1 million, with no hidden charges,” he assured.

Collaborative Efforts to Empower MSMEs

The initiative is part of a larger effort to bolster Nigeria’s economy by providing much-needed support to MSMEs, which are crucial to job creation and economic growth. Dr. Olasupo Olusi, Managing Director of the Bank of Industry, highlighted that MSMEs remain a driving force in the non-oil economy, contributing significantly to sectors like agriculture, manufacturing, and services. He explained that the N200 billion Presidential Intervention Fund, established to assist MSMEs and manufacturing enterprises, reflects the government’s commitment to fostering economic resilience and job creation.

“Despite MSMEs’ immense contributions to our economy, accessing the necessary funding to grow remains a struggle. The intervention fund is a response to this gap, and we are here to ensure its efficient implementation,” Dr. Olusi said, through his representative, Mabel Ndagi, Executive Director of Public Sector and Interventions at BoI.

Access Bank and Other Partners Focused on MSME Growth

Echoing the commitment to MSME growth, Access Bank Plc, represented by Managing Director Mr. Roosevelt Ogbonna, reiterated its focus on supporting small businesses, particularly those led by women and youth. He noted, “94% of all businesses in Nigeria are MSMEs, and two-thirds of these are owned by women and young people. This demographic drives our commitment to being recognized as the leading MSMEs bank in Nigeria.”

Through collaborations between the Federal Government, BoI, and partner institutions like Access Bank, this loan initiative aims to reduce financial barriers, allowing Nigerian MSMEs to thrive. As Mr. Adekunle-Johnson recommended, MSMEs can visit BoI branches for guidance and prompt access to funds, helping them expand their potential and create more job opportunities.

This loan scheme offers substantial benefits for eligible businesses and underscores the Federal Government’s dedication to fostering economic inclusion and supporting local entrepreneurship.

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