The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched a ₦500 million zero-interest revolving loan fund to improve access to affordable financing for Micro, Small and Medium Enterprises (MSMEs) across the country. The initiative is aimed at supporting business expansion, job creation, and inclusive economic growth by easing one of the sector’s biggest constraints access to capital.
The fund was unveiled in partnership with the Bank of Industry (BOI) and is structured to provide interest-free loans to eligible MSMEs. Beneficiaries will only be required to repay the principal amount, making the facility significantly more affordable than conventional commercial loans. The revolving nature of the fund means that repaid loans will be recycled to finance additional businesses, ensuring the programme’s long-term sustainability.
According to SMEDAN, the initiative targets entrepreneurs operating across key sectors of the economy, including agriculture, manufacturing, services, technology, and the creative industry. The agency said the programme is designed to strengthen the growth of small businesses, enhance productivity, and encourage entrepreneurship, particularly among underserved groups.
Speaking during the launch, SMEDAN officials noted that inadequate access to affordable financing remains one of the most significant barriers facing Nigerian MSMEs. By eliminating interest charges, the agency expects more small businesses to invest in equipment, expand operations, increase production, and create employment opportunities without the burden of high borrowing costs.
The partnership with the Bank of Industry will ensure professional administration of the fund, including loan disbursement, monitoring, and repayment management. The collaboration is expected to improve transparency, reduce default risks, and maximise the impact of the programme on Nigeria’s MSME ecosystem.
Industry experts have welcomed the initiative, noting that access to patient and affordable capital is critical for improving the survival rate of small businesses. They believe the revolving fund could stimulate entrepreneurship, strengthen local production, and contribute to economic diversification by supporting enterprises that often struggle to secure financing from commercial banks.
If successfully implemented, the zero-interest revolving fund is expected to help thousands of entrepreneurs scale their businesses, improve competitiveness, and contribute more significantly to Nigeria’s industrial and economic development.
