The Federal Government has unveiled an innovative program aimed at boosting Micro, Small, and Medium Enterprises (MSMEs) across Nigeria through a ₦198 billion syndicated loan fund. Set to commence in the first quarter of 2025, the initiative is designed to promote entrepreneurship and foster economic development nationwide.
Key Features of the Program
Affordable Loan Scheme:
MSMEs will have access to loans with a highly competitive 9% interest rate, featuring favorable conditions such as a five-year repayment period and a one-year grace period.
Loan Amount and Accessibility:
Eligible businesses can secure funding of up to ₦100 million, ensuring financial support is available to enterprises in every part of the country.
Grants and Property Ownership:
Grants of up to ₦400,000 will be offered to help businesses thrive. Additionally, selected MSMEs will be provided with free shops and other resources, allowing them to transition from renters to property and business owners.
Job Creation Through Skill Development:
Beneficiary businesses will be required to train two individuals for a year, with the government covering the trainees’ salaries. This initiative aims to enhance job opportunities and skills acquisition nationwide.
A Focus on Sustainable Financing
During the 2024 End of the Year Economic Review Technical Workshop in Abuja, Temitola Adekunle-Johnson, Senior Special Assistant on Job Creation and MSMEs, emphasized the government’s commitment to long-term financial solutions:
“We are shifting from short-term grants to a more structured financing approach that enables MSMEs to grow, innovate, and significantly contribute to the economy.”
He assured that the program would reach businesses in every state, from Kebbi to Plateau, ensuring nationwide impact.
A Comprehensive Economic Strategy
This initiative is part of a broader plan to transform Nigeria’s MSME sector by addressing critical challenges such as limited access to credit and affordable infrastructure. It aligns with the government’s vision to stimulate entrepreneurship and drive economic activity.
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Collaboration with state governments underscores a unified strategy to empower businesses and create opportunities across the nation.
As Nigeria moves into 2025, this comprehensive support system for MSMEs is expected to revolutionize the sector, fostering innovation, generating employment, and driving sustainable economic growth.
