FG Launches ₦198bn Loan Fund To Empower MSMEs In 2025

In a decisive move to bolster micro, small, and medium enterprises (MSMEs) across the nation, the federal government has unveiled a ₦198 billion syndicated loan fund. Scheduled to roll out in the first quarter of 2025, this initiative aims to enhance entrepreneurship and spur economic growth in every state of the federation.

The program introduces a single-digit interest rate of nine percent, with a five-year loan tenure and a one-year moratorium to ease repayment burdens. MSMEs will have access to loans of up to ₦100 million, offering flexible financing opportunities to entrepreneurs, regardless of their location.

In addition to loans, the initiative includes grants of up to ₦400,000 to support operational costs. Selected businesses will also benefit from free shop spaces and other resources, enabling them to transition from renting to owning their premises, a move designed to provide long-term financial stability.

The initiative prioritises job creation through a unique training mandate. Beneficiary MSMEs will be required to train two individuals for a year, with the government fully funding the trainees’ salaries. This approach not only promotes skill development but also creates a cascading impact on employment nationwide.

During the 2024 End of the Year Economic Review Technical Workshop held in Abuja recently, Mr. Temitola Adekunle-Johnson, Senior Special Assistant on Job Creation and MSMEs, emphasised the shift from one-off grants to sustainable financing structures.

“We are moving away from one-off grants to structured, sustainable financing that empowers MSMEs to grow, innovate, and contribute to the economy effectively,” he stated, assuring that the program would reach businesses in every state, from Kebbi to Plateau.

This initiative aligns with the government’s broader strategy to revolutionize Nigeria’s MSME sector, addressing critical challenges such as inadequate access to credit and affordable infrastructure. Collaboration with state governments ensures a unified approach to business empowerment and opportunity creation.

As Nigeria embarks on 2025, this comprehensive support system for MSMEs is set to reshape the sector, driving innovation, creating jobs, and laying the groundwork for sustainable economic growth. The government’s focus on structured financing and resource provision reflects a commitment to fostering a robust entrepreneurial ecosystem that will benefit businesses and communities alike.