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Federal Government to introduce New Loan Initiative for SMEs
Arthur Eriye
The federal government has unveiled plans to introduce a new initiative with the aim of making access to credit facility easier for Small and Medium Enterprises (SMEs) across the country. This move is part of the government’s broader effort to boost entrepreneurship, strengthen industrial growth, and enhance Nigeria’s economic competitiveness.
The Minister of State for Industry, Trade, and Investment, Senator John Enoh, made the disclosure during the Renewed Hope Global Virtual Conference 2025 held over the weekend. He acknowledged the persistent challenges small businesses face when seeking loans, particularly from commercial banks, and emphasized the government’s commitment to addressing these difficulties.
The federal government will partner First City Monument Bank (FCMB) to ensure micro and small enterprises can secure funding more easily. According to Enoh, the initiative will be launched in the coming weeks and is expected to provide financial relief to thousands of small business owners nationwide.
“In the coming weeks, we expect to announce a collaboration that will enable thousands of small business owners to access funding more easily,” the minister said.
This initiative aligns with the government’s broader economic policies aimed at fostering sustainable development and reducing the barriers that have historically hindered SME growth.
Enoh reaffirmed the government’s dedication to enhancing financial access for businesses, highlighting the Bank of Industry (BOI) as a crucial institution in this initiative. He described BOI as one of the country’s most effective agencies but acknowledged that many SMEs still struggle to navigate its loan processes.
“The BOI has been instrumental in supporting businesses, but I recognize the hurdles many small enterprises face in accessing loans,” He stated.
In order to address these concerns, the government is actively working with BOI to simplify loan requirements and speed up the disbursement process. This effort aims to ensure that SMEs, which form the backbone of the Nigerian economy, receive the financial support needed to thrive.
Beyond direct financial support, the minister emphasized the government’s broader strategy to stimulate industrial expansion, facilitate access to capital, and drive digital transformation in key sectors,” he said.