High-Level Committee Set Up to Improve MSME Funding

The Federal Government has inaugurated a high-level committee to collaborate with the Central Bank of Nigeria (CBN) and other key stakeholders to strengthen financing options for Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.

The National Council on MSMEs established the committee during its first 2025 meeting at the Presidential Villa in Abuja on Tuesday.

Chaired by the Minister of State for Industry, Trade, and Investment, Senator John Enoh, the committee includes representatives from the Ministries of Science and Technology, Women Affairs, and State for Agriculture and Food Security.

New Loan Scheme for Small Businesses

As part of efforts to boost MSME growth, the council approved a new financial initiative known as the Syndicated De-Risked Loans for Small Businesses.

This loan scheme will be a collaboration between state governments and financial institutions, offering MSMEs access to financing at single-digit interest rates across the country.

Government’s Commitment to MSME Growth

Vice President Kashim Shettima, who chaired the meeting, reaffirmed the Federal Government’s dedication to expanding the MSME sector. He stressed the importance of small businesses in job creation and economic development.

Shettima urged state governments to establish neutral, sustainable structures to oversee the implementation of the loan scheme beyond the tenure of current administrations.

“These initiatives must outlive the present administrations in the states. Regardless of political affiliations, Nigerians should be the ultimate beneficiaries of the programs we are introducing,” he stated.

Key Stakeholders in the MSME Financing Initiative

The newly inaugurated committee includes:

• The Senior Special Assistant to the President on MSMEs, Temitola Adekunle-Johnson
• Chief executives from key financial agencies, including:
  • Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
  • Bank of Industry (BOI)
  • Bank of Agriculture (BOA)
  • Nigeria Export-Import Bank (NEXIM Bank)
  • Development Bank of Nigeria (DBN)
  • Corporate Affairs Commission (CAC)
  • Nigerian Investment Promotion Commission (NIPC)
  • Nigerian Export Promotion Council (NEPC)
• A representative of the organized private sector

Syndicated Loan Scheme to Transform MSME Landscape

Speaking at the event, Temitola Adekunle-Johnson, the Senior Special Assistant to the President on MSMEs, described the new loan scheme as a game-changing initiative that would provide affordable and accessible financing to small businesses.

He emphasized President Bola Tinubu’s commitment to MSME development, highlighting the program’s potential to generate jobs and stimulate economic growth.

Additionally, SMEDAN’s Director-General, Charles Odii, introduced the GROW Nigeria Strategy, a framework developed after the 2024 MSME conference. The strategy focuses on providing:

• Guidance
• Resources
• Opportunities
• Workforce support

The initiative aims to assist approximately 40 million small businesses across eight key sectors.

With these new measures in place, the Federal Government aims to strengthen the MSME sector and ensure sustainable economic growth.