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ABUJA,Nigeria (NAN) - The Federal Government, in collaboration with the Central Bank of Nigeria, has established a Presidential Committee to distribute single-digit loan facilities to Micro, Small, and Medium Enterprises (MSMEs) across Nigeria.
Vice President Kashim Shettima shared this update on Tuesday at the Presidential Villa in Abuja, highlighting it as a strategic initiative to foster the growth of MSMEs in the nation.
The committee is chaired by the Minister of State for Industry, Trade and Investment, Sen. John Enoh, and includes ministers from Science and Technology, Women Affairs, Agriculture and Food Security, as well as the Senior Special Assistant to the President on MSMEs among its members.
Also part of the committee are the CEOs from relevant institutions like the Bank of Industry, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the Bank of Agriculture (BoI), the Nigeria Export-Import Bank (NEXIM Bank), the Development Bank of Nigeria (DBN), the Corporate Affairs Commission (CAC), the Nigerian Investment Promotion Commission (NIPC), the Nigerian Export Promotion Council (NEPC), along with representatives from NACCIMA and the organized private sector.
Consequently, the National Council on Micro, Small, and Medium Enterprises (MSMEs), which serves as the steering committee, will work alongside the Central Bank of Nigeria to allocate the loans to the beneficiaries.
The vice president emphasized that it is the responsibility of the Federal Government, through its agencies and partners, to nurture growth in the MSME sector and foster job creation across various sectors for Nigerian citizens.
Outlining the committee's objectives, Shettima stressed that the administration of President Bola Tinubu's support for small businesses, demonstrated through significant policies and programs, must be supplemented by stakeholders, particularly those from the private sector.
“The loan initiative will be a collaboration between state governments and financial institutions designed to improve access to financing for MSMEs at single-digit interest rates nationwide,” the Vice President asserted.
He urged state governments to develop frameworks that are free from political influences to ensure the effective execution of the syndicated de-risked loans for MSME schemes.
“Many of these initiatives are commendable and should continue beyond the current administrations in the states. Irrespective of political affiliations, it is vital that Nigerians are recognized as the primary beneficiaries of these programs we are endeavoring to establish,” the VP remarked.
The Senior Special Assistant to the President on MSMEs, Temitola Adekunle-Johnson, introduced the ‘syndicated de-risked loans’ scheme for small businesses, seeking collaboration from committee members and characterizing it as a transformative program aimed at providing accessible and affordable loans for enterprises.
Temitola indicated that this initiative reflects the president’s dedication to advancing small businesses and is focused on generating more employment opportunities for Nigerians.
In his address regarding the current state of MSMEs in Nigeria, the DG of SMEDAN, Mr. Charles Odii, stated that the agency is presenting a proposal that originated from a three-day MSME conference held in 2024.
He mentioned that the initiative, termed the GROW Nigeria strategy, aims to offer guidance, resources, opportunities, and a workforce to assist the approximately 40 million small businesses spread across eight distinct sectors.
