- The Federal Government raised loan access for small businesses to N5 million under the MSME loan scheme
- The initiative, part of a N200 billion Presidential Intervention Fund, aims to create jobs and boost economic growth
- MSMEs can access loans at a low 9% interest rate with a three-year repayment period
The Federal Government has announced a significant increase in the amount small businesses can access through its loan scheme, raising the limit to N5 million for eligible Micro, Small, and Medium Enterprises (MSMEs). This move is part of the government's efforts to foster inclusive economic growth across the country.
Dr. Olasupo Olusi, Managing Director and CEO of the Bank of Industry (BoI), made the announcement on Friday, November 29, during a town hall meeting in Lagos.
The event, organised by the Federal Ministry of Finance in collaboration with the Ministry of Industry, Trade and Investment, the Presidency, and the Bank of Industry, aimed to raise awareness about the Federal Government Grant and Loan Scheme.
Represented by Umar Shekarau, BoI's Executive Director for MSMEs, Olusi commended President Bola Tinubu for the introduction of a N200 billion Presidential Intervention Fund, which includes N75 billion specifically for MSMEs. Olusi emphasised that the initiative is expected to create thousands of jobs across the country and help boost the Nigerian economy.
The funds, which are already available at the Bank of Industry, will be disbursed to qualifying businesses at a low interest rate of nine per cent. Olusi encouraged business owners to approach the BoI directly or register online without intermediaries to access the loans and grants.
He also highlighted that over 800,000 Nigerians have already benefited from the scheme, with opportunities still available for more, including youths, women, and people with disabilities.
Senior Special Assistant to the President on Job Creation, Temitola Adekunle-Johnson, announced that successful applicants could now receive loans of up to N5 million, a significant increase from the previous limit of N1 million. The loans come with a three-year tenure at the same nine per cent interest rate.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who was represented by Ahmed Gazalli, said the event was an important step towards fostering an inclusive and thriving economy. Edun reiterated the government’s commitment to supporting MSMEs, recognising them as the backbone of Nigeria’s economy.
Minister of State for Industry, Trade, and Investment, Sen. John Eno, also expressed the government’s dedication to creating an enabling environment for businesses to thrive. He called for continued collaboration among agencies to remove barriers to MSME growth.
The event was held simultaneously in six states, with various beneficiaries sharing their success stories. These included vegetable farmer Akor Goddy, nanny Angela Christopher, and food vendor William Asuquo, all of whom have benefited from the programme.
FG to allocate N6.5trn for personnel costs in 2025 due to new minimum wage
Meanwhile, TheRadar earlier reported that the Federal Government disclosed that its expenditure on personnel costs would rise by at least 60 per cent in 2025, following the implementation of the newly approved national minimum wage and consequential salary adjustments for federal civil servants.
According to the newly released Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF), the government's personnel costs will increase by N2.46 trillion, bringing the total personnel budget to approximately N6.56 trillion for the 2025 fiscal year.
