FG moves to boost MSME growth, sets up committee to enhance financing

By Kunle Sanni

The federal government has taken steps to accelerate the growth of Micro, Small, and Medium Enterprises (MSMEs) in Nigeria by establishing a committee to improve financing options for small businesses.

This decision was reached on Tuesday at the first 2025 meeting of the National Council on MSMEs, held at the Presidential Villa in Abuja.

Vice President Kashim Shettima, who chaired the meeting, emphasized the government’s commitment to supporting small businesses and driving job creation.

He stated that the administration of President Bola Ahmed Tinubu has introduced several policies to aid MSMEs and that collaboration with stakeholders, especially in the private sector, is crucial for success.

To enhance financing for MSMEs, the newly formed committee will work with the Central Bank of Nigeria (CBN) and other financial institutions. The committee is chaired by the Minister of State for Industry, Trade, and Investment, Senator John Enoh, and includes:

Ministers of Science and Technology, Women Affairs, and Agriculture

Senior Special Assistant to the President on MSMEs

Heads of key financial institutions, including the Bank of Industry (BOI), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Bank of Agriculture (BOA), Nigeria Export-Import Bank (NEXIM), Development Bank of Nigeria (DBN), and Corporate Affairs Commission (CAC)

Representatives from the Nigerian Investment Promotion Commission (NIPC), Nigerian Export Promotion Council (NEPC), and the private sector

The council also approved a new financing initiative known as “syndicated de-risked loans for MSMEs.” The scheme will involve partnerships between state governments and financial institutions to provide loans at single-digit interest rates.

Vice President Shettima urged state governments to implement the scheme through independent bodies free from political influence to ensure sustainability beyond current administrations.

“Regardless of political affiliations, Nigerians must be the ultimate beneficiaries of these schemes,” Shettima said.

During the meeting, the Director-General of SMEDAN, Mr. Charles Odii, presented a new strategy called GROW Nigeria, which aims to support approximately 40 million MSMEs across eight key sectors by providing guidance, resources, and workforce support.

The initiative was developed following a three-day MSME conference in 2024 and aligns with the administration’s broader economic development goals.