The Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr. Charles Odii, has announced a N500 million zero-interest Grow Fund aimed at boosting Micro, Small and Medium Enterprises (MSMEs) across the country.
Odii disclosed this weekend in Abuja during a media briefing held as part of activities marking the 2026 World MSME Day, saying the intervention is designed to tackle one of the biggest challenges facing small businesses—access to finance.
He explained that unlike previous intervention programmes, the fund would not be disbursed directly to individuals but through cooperatives, trade unions, business organisations and registered associations to ensure transparency, accountability and proper loan recovery.
According to him, SMEDAN arrived at the decision after engaging directly with traders and business owners across the country.
“We visited traders at one of the markets today 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 noted that beneficiaries would access the interest-free loans to expand their businesses, increase working capital, acquire tools and equipment, and secure business premises.
“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 added.
He explained that repayment terms would be agreed upon with each association to ensure the revolving fund remains sustainable and reaches more entrepreneurs.
The SMEDAN boss disclosed that the agency plans to expand the initial N500 million through partnerships with state governments, development partners and financial institutions willing to provide matching funds.
Odii also revealed that SMEDAN is reviewing the draft National MSME Policy before forwarding it to President Bola Ahmed Tinubu for approval after another round of stakeholder consultations.
According to him, the proposed policy seeks to introduce single-digit interest loans for MSMEs, reserve 30 per cent of government procurement for small businesses and remove age restrictions from intervention programmes.
He said the agency would also engage regulatory agencies over concerns affecting entrepreneurs, including advertising registration requirements.
Odii urged state governments to collaborate with SMEDAN in establishing more enterprise development centres to prepare Nigerian businesses for opportunities under the African Continental Free Trade Area (AfCFTA).
He further disclosed that the agency had secured a $12 million partnership with the Korean government to build a Central Enterprise Centre expected to benefit at least one million MSMEs during President Tinubu’s first term.
According to him, SMEDAN decided to allocate part of its office land for the project after delays in land allocation to ensure the funding was not lost.
“By the time we are done with the first tenure of Mr. President, we can count at least one million businesses that have benefited from our policies,” Odii assured.
Also speaking, the Senior Special Assistant to the President on Industrial Training and Manpower Development, Adamson Ayinde, praised the association-based lending model, saying it would enhance monitoring, accountability and reduce the diversion of government-backed loans and business equipment.
He stressed that the initiative would strengthen the growth of Nigeria’s MSME sector and improve access to much-needed funding for entrepreneurs nationwide.
