The Nigerian Federal Government has announced plans to begin disbursing loans at single-digit interest rates to Small and Medium Enterprises (SMEs) by the third quarter of 2025. The initiative, part of the Presidential Grant and Loan Scheme, was disclosed by Temitola Adekunle-Johnson, the Senior Special Assistant on Job Creation and MSMEs, during a town hall and sensitization event in Abuja.
Adekunle-Johnson highlighted that the government’s support for SMEs is crucial, as small businesses form the backbone of the Nigerian economy, employing over 80% of the workforce and contributing nearly half of the GDP. However, he acknowledged that access to affordable loans has been a persistent challenge due to high interest rates driven by the Central Bank of Nigeria’s (CBN) frequent monetary policy rate hikes, most recently raised to 27.25%.
In response, the administration plans to implement single-digit loan facilities, reducing reliance on costly loans that burden small businesses. “The presidency, in collaboration with partners like Access Bank, Wema Bank, and the Bank of Industry, is set to roll out these loans across all states by Q3 of 2025,” Adekunle-Johnson explained. So far, 18 states have committed to the program.
The loans aim to provide a reliable financing environment where SMEs can approach banks, access funds, and repay with dignity, allowing them to focus on sustainable growth rather than survival. “Small businesses don’t need mere handouts—they need real financial backing to build and expand,” he noted.
Minister of Information and National Orientation, Mohammed Idris, also emphasized that supporting SMEs is a cornerstone of the administration’s economic reform agenda. Acknowledging the economic challenges brought about by reform policies, Idris reiterated the government’s commitment to alleviating hardships through targeted loan programs. Additionally, ongoing tax reforms are aimed at reducing tax burdens on Nigerian businesses.
The government’s intervention includes a N200 billion support package, with initial grants targeting nano-businesses and subsequent phases focusing on SMEs and large manufacturers. The initiative is designed to be inclusive, with application-based access rather than requiring connections within government.
As part of the outreach, similar town hall events are being conducted across Nigeria’s six geopolitical zones to engage SMEs directly and ensure they have access to the necessary resources to thrive.
