The Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, has launched a 500-million-naira zero-interest loan scheme to support Micro, Small, and Medium Enterprises across the country.
The initiative referred to as the “Grow Fund,” was announced by SMEDAN Director-General Charles Odii in Abuja during an engagement with the Commerce and Industry Correspondents Association of Nigeria while marking the 2026 World MSME Day.
In a shift from traditional lending, the revolving loan will not be given to individual entrepreneurs, it will Instead, be disbursed through cooperatives, trade unions, and business associations.
Director-General Odii explained that the association-based model is designed to boost accountability, simplify loan recovery, and ensure the funds reach genuine business owners.
According to the DG, beneficiaries can use the zero-interest loans to boost working capital, secure workspaces, and acquire essential tools.
He said repayment terms will be flexibly negotiated with each association to ensure the revolving fund can be sustained and expanded to more entrepreneurs, adding that SMEDAN also plans to scale up the initial 500-million-naira fund through partnerships with state governments and development partners.
Meanwhile, SMEDAN is reviewing the draft National MSME Policy before submitting it to President Bola Tinubu for approval.
The proposed reforms include single-digit interest loans for small businesses, reserving 30 percent of government procurement for MSMEs, and removing age limits from intervention programmes.
The Senior Special Assistant to the President on Industrial Training and Manpower Development, Adamson Ayinde further commended the association-based lending model, noting that it will reduce the diversion of government-supported loans and equipment.
