SMEDAN Launches N500m Zero-Interest Fund for MSMEs

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), led by Director General Gener Charl Odii, has unveiled a N500 million zero-interest fund designed to assist Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. Announced during a media briefing marking the 2026 World MSME Day, the fund will be distributed through cooperative trade unions rather than directly to individual entrepreneurs.

This approach aims to improve loan recovery and ensure that funds reach genuine business owners. The financing is structured to address one of the biggest challenges facing small businesses in Nigeria: access to capital.

Odii emphasized the importance of understanding the realities faced by traders and the need for flexible arrangements that allow for revolving funds to benefit entrepreneurs. Additionally, SMEDAN plans to expand partnerships with state governments and development partners to provide matching funds.

The initiative is part of a broader effort to review and advance the national MSME policy, pending approval from President Bola Tinubu.