- FG has approved a N75 billion loan scheme for Micro, Small and Medium Enterprises (MSMEs)
- The loan, disbursed in partnership with BOI and others, guarantees a nine per cent interest rate
- The scheme guarantees individual loans of up to N1 million
The Federal Government has approved a N75 billion loan scheme with a single-digit interest rate of nine per cent for 75,000 Micro, Small and Medium Enterprises (MSMEs) across the country.
Minister of Information and National Orientation, Alhaji Mohammed Idris, at a town hall meeting and sensitisation event in Abuja on Wednesday, November 6, said the loan scheme aims to stimulate economic growth by targeting women and youth-owned enterprises, creating jobs and stimulating local economies.
The scheme, which will be disbursed in 2025 with individual loans capped at N1 million, is a joint effort among the Federal Government, the Bank of Industry (BOI) and state governments.
The minister said, “This scheme is a concrete manifestation of Tinubu’s commitment to economic transformation. By focusing on MSMEs, which are the backbone of our economy, we aim to diversify income streams, boost exports and provide valuable job opportunities.”
FG begins regional sensitisation ahead of disbursement
Ahead of the disbursement of the loan, the federal government has begun regional sensitisation and meetings with stakeholders and beneficiaries.
On the sensitisation train are government agencies like the Corporate Affairs Commission (CAC), Federal Inland Revenue Service (FIRS), Ministry of Finance, Ministry of Industry, Trade and Investment and other partners.
During a sensitisation event in Enugu, BOI’s Enugu Branch Head, Mrs Anuli Akabogu, said the loan is expected to alleviate some of the challenges facing MSMEs, such as increased production costs.
Akabogu said, “The government understands the burdens MSMEs face; this fund is intended to ease the cost of production.”
In Akwa Ibom, the state’s Commissioner for Trade and Investment, Mr John James, urged beneficiaries to utilise the loan judiciously.
“This is an opportunity to scale your businesses responsibly. MSMEs drive economies globally, and we want the same for Nigeria,” he said.
In Kaduna, Governor Uba Sani, who was represented by his Special Adviser on Economic Matters, said the scheme will revitalise the economy.
He noted, “This initiative proves Tinubu is a leader who listens to the needs of Nigerians. Through this, MSMEs will revitalise not just the local economy but bolster our national strength.”
At a sensitisation workshop earlier, Senior Special Assistant to the President on Job Creation, Tola Adekunle-Johnson, noted that partnership with states was essential to guarantee an enabling environment for businesses to thrive while also ensuring funding.
MSMEs are economic drivers
Nigeria is home to approximately 40 million MSMEs, 89.4 per cent of which are in the informal economy. MSMEs contribute about 46.32 per cent to the country’s Gross Domestic Product (GDP) and account for 87.9 per cent of employment.
These figures further prove the importance of supporting MSMEs through funding and creating an enabling environment for businesses to thrive.
Fewer women, more young people operate in Nigeria’s informal economy – Report
Meanwhile, TheRadar reported that a report by Moniepoint, a fintech company providing banking services and loans through an online banking app, has revealed that more men than women operate businesses in the informal sector.
The report identified that approximately 40 million Micro, Small and Medium Enterprises (MSMEs) are domiciled in Nigeria with 89.4 per cent of them in the informal economy.
