In an effort to provide Micro, Small, and Medium-Sized Enterprises (MSMEs) access to reasonably priced finance, the Federal Government of Nigeria has announced intentions to establish a de-risking fund in May 2025.
According to the News Agency of Nigeria (NAN), this was announced on Saturday, 13th April, at the 2025 International Women’s Day event hosted by the Nigerian Association of Small and Medium Enterprises (NASME) in Abuja by Mr Temitola Adekunle-Johnson, Special Adviser to the President on Job Creation and MSMEs.
According to him, the program is a component of the Tinubu administration’s strategy to combat excessive lending rates, which are currently between 28% and 30% and are impeding the expansion of MSME.
“In May, we will launch two very important schemes. One is the de-risking fund for SMEs.
“We are encouraging state governments and our commercial banks to come together to ensure that SMEs can get loan facilities for less than the ridiculous 28% or 30%,” he stated.
Adekunle-Johnson said the fund would operate as a risk-sharing mechanism, allowing state governments and banks to provide loans at lower interest rates jointly. While he did not commit to a specific rate, he said the goal is to offer much lower rates than currently available.
He added that the de-risking fund would also serve as a buffer for small businesses facing the impact of international trade challenges, such as the 14% tariff imposed by the United States on certain Nigerian goods.
The Federal Government also announced plans to expand its network of MSME-shared facility hubs nationwide. The goal is to provide small businesses affordable access to international-standard equipment in ICT, agriculture, and fashion sectors.
These hubs are part of a broader initiative to enhance productivity and competitiveness among micro, small, and medium-sized enterprises.
Adekunle-Johnson said 10 hubs have been established so far, with plans to add 8–10 more by year-end, bringing the total to around 20.
He said each hub charges as little as N1,000 daily, giving consistent power, and may support up to 200 enterprises daily. Over 120,000 MSMEs profited from the campaign in the past year. To maintain transparency, the hubs are privately run under government supervision.
NASME’s National Women Coordinator, Dr. Beatrice Benjamin, echoed these worries and called on the government and financial institutions to act quickly and thoughtfully. She emphasised the necessity of customised infrastructure and support models, pointing out that implementation is still lacking, although policies are in place.
Source: Nairametrics
Image Credit: BusinessDay
