The SMEDAN Zero Interest Fund has been launched to provide easier access to financing for Micro, Small and Medium Enterprises (MSMEs), with the Small and Medium Enterprises Development Agency of Nigeria unveiling a ₦500 million revolving loan programme to support business growth across the country.
SMEDAN Director-General, Charles Odii, announced the initiative in Abuja during activities marking the 2026 World MSME Day. He said the financing scheme is designed to tackle one of the biggest challenges facing small businesses, which is limited access to affordable capital.
According to Odii, the fund will not be disbursed directly to individual entrepreneurs. Instead, the SMEDAN Zero Interest Fund will be managed through cooperatives, trade unions, business member organisations and registered associations. He explained that the model is intended to improve accountability, strengthen loan recovery and ensure that the funds reach genuine business owners.
“We visited traders at one of the markets today to engage directly with them because it is not enough to sit in offices and make policies without understanding their realities. Many of the challenges they raised border on financing, which is why we are launching the Grow Fund for Small Businesses in Nigeria,” Odii said. He added that beneficiaries would be able to use the financing to increase working capital, secure business premises and purchase equipment needed to expand their operations.
“We are not giving the money to individuals directly. We are giving it to associations that understand their members and can manage the funds responsibly,” he stated.
Odii said repayment terms would be determined in collaboration with each participating association, allowing for flexible arrangements that would enable the revolving loan scheme to benefit more entrepreneurs over time.
He disclosed that the initial ₦500 million allocation is expected to grow through partnerships with state governments, development partners and other institutions willing to provide matching funds. The expansion is aimed at increasing the reach of the SMEDAN Zero Interest Fund and supporting more small businesses nationwide.
The SMEDAN Director-General also revealed that the agency is reviewing the draft National MSME Policy before submitting it to President Bola Tinubu for consideration. According to him, the proposed policy reforms include introducing single-digit interest loans for MSMEs, reserving 30 per cent of government procurement opportunities for small businesses and removing age restrictions from intervention programmes.
Odii further stated that SMEDAN would engage relevant regulatory agencies over issues affecting entrepreneurs, including concerns surrounding advertising registration requirements. The agency believes the SMEDAN Zero Interest Fund, alongside the proposed policy reforms, will improve access to affordable financing, strengthen the operating environment for small businesses and support entrepreneurship as part of Nigeria’s broader economic development strategy.
