SMEDAN Secures N6bn Single-digit Interest Rate Loans For SMEs

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has announced a significant financial initiative aimed at supporting small and medium enterprises (SMEs).

The agency has signed a memorandum of understanding (MoU) with the Bank of Industry (BOI) and Sterling Bank to provide SMEs with access to N6 billion in loans at single-digit interest rates.

This funding is intended to bolster working capital, workplace procurement, and work equipment for SMEs.

During the recent launch of the Sustainable Systems for Research and Innovation Financing (SSRIF II) and Nigeria Enterprise Support Organisations (ESO) project in Lagos, SMEDAN’s Director-General, Mr. Charles Odii, shared the news of this development. The event, funded by the United Kingdom’s (UK) Research and Innovation Systems in Africa (RISA), highlighted the persistent challenge of scarce and expensive finance capital for small businesses in Nigeria. He emphasised SMEDAN’s commitment to unlocking capital for SMEs to foster growth and sustainability.

“We have secured a N5 billion loan agreement with Sterling Bank and an additional N1 billion with the BOI. These efforts are being extended to various states, including Enugu, Anambra, and Katsina, to support the expansion of small businesses,” Mr. Odii said.

He further noted that access to these funds would enable SMEs to start and scale their operations across Nigeria.

Mr. Odii reaffirmed SMEDAN’s dedication to advancing the current administration’s economic prosperity agenda. He stressed the importance of addressing barriers to SME growth and protecting these enterprises from inflationary pressures.

This initiative represents a crucial step towards fostering a more robust and resilient SME sector in Nigeria.