The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched the SMEDAN Grow Fund, a N500 million zero-interest revolving loan scheme designed to improve access to finance for Micro, Small and Medium Enterprises (MSMEs). The initiative, unveiled to mark the 2026 World MSME Day, will channel funding through business associations and cooperatives to improve accountability and expand support for genuine entrepreneurs.
SMEDAN Director-General, Charles Odii, announced the initiative in Abuja, explaining that the agency would disburse the loans through cooperatives, trade unions, business member organisations and other recognised associations instead of directly to individual business owners. According to Odii, the association-based structure is intended to strengthen loan recovery, promote transparency and ensure the funds reach businesses that genuinely require financial support.
“We visited traders at one of the markets today 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,” he said.
Odii explained that beneficiaries of the SMEDAN Grow Fund would be able to use the zero-interest loans to strengthen working capital, acquire workspaces and purchase tools needed to grow their businesses.
“We are not giving the money to individuals directly. We are giving it to associations that understand their members and can manage the funds responsibly,” he said. He added that repayment terms would be agreed with each participating association, allowing flexibility while ensuring the revolving fund continues to support more entrepreneurs over time.
The SMEDAN Director-General disclosed that the initial N500 million fund is expected to grow through partnerships with state governments, development partners and other institutions willing to provide matching funds. He said expanding the financing pool would enable the programme to reach more MSMEs across the country and strengthen business development at the grassroots level.
Odii also revealed that SMEDAN is reviewing the draft National MSME Policy before forwarding it to President Bola Tinubu for approval. According to him, the proposed policy reforms include: single-digit interest loans for MSMEs, reserving 30 percent of government procurement opportunities for small businesses, removing age restrictions from government intervention programmes.
He added that the agency would also engage relevant regulatory authorities on concerns affecting small businesses, including advertising registration requirements raised by entrepreneurs.
The launch of the SMEDAN Grow Fund represents part of the Federal Government’s broader efforts to improve access to affordable financing for small businesses. SMEDAN says the association-driven lending model, alongside planned policy reforms, is expected to strengthen MSME growth, improve business sustainability and support job creation across Nigeria.
