Federal Government Expands MSME Loan Facility To ₦5 Million

Federal Government Expands MSME Loan Facility To ₦5 MillionThe Federal Government has raised the maximum loan amount available for small businesses to ₦5 million, aiming to boost inclusive economic growth across Nigeria. This was announced by Dr. Olasupo Olusi, Managing Director and CEO of the Bank of Industry (BOI), at a town hall meeting in Lagos on Friday, focused on the Federal Government’s Grant and Loan Scheme.....KINDLY READ THE FULL STORY HERE▶

The event, organized by the Federal Ministry of Finance in partnership with the Ministry of Industry, Trade and Investments, the Presidency, the Bank of Industry, and other stakeholders, aimed to highlight the government’s efforts to support small businesses. Olusi, represented by Umar Shekarau, Executive Director of MSMEs at BOI, commended President Bola Tinubu for establishing a ₦200 billion Presidential Intervention Fund to assist Micro, Small, and Medium Enterprises (MSMEs).

Olusi highlighted that ₦75 billion of the fund is specifically allocated for MSMEs through the presidential conditional grant and loan scheme, which is expected to create thousands of direct and indirect job opportunities nationwide. He also noted that the loan fund is available for disbursement at an interest rate of nine percent through BOI’s extensive network.

He encouraged business owners to either visit the Bank of Industry in person or register online to access loans and grants, emphasizing the importance of bypassing intermediaries. Over 800,000 Nigerians have already benefited from the initiative, with more opportunities available for youth, women, people with disabilities, and all Nigerians in general.

The town hall meetings are being held across six states, and Temitola Adekunle-Johnson, Senior Special Assistant to the President on Job Creation and MSMEs, announced that successful applicants would now be eligible for loans of up to ₦5 million—an increase from the previous ₦1 million limit. This adjustment aims to enhance business operations and help address challenges related to access to finance and infrastructure.

The loan, with a three-year tenure and a single-digit interest rate of nine percent, offers MSMEs up to ₦5 million in support. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, represented by Ahmed Gazalli, spoke about the presidency’s various interventions to support small businesses and the manufacturing sector, highlighting the progress made so far.

Edun emphasized that the goal of the gathering was to foster a unified vision for economic prosperity, focusing on creating an inclusive economy where all Nigerians have the necessary resources to succeed. He reiterated the government’s commitment to supporting the growth of MSMEs, stressing their critical role in the nation’s economy. “If we do not support the prosperity of our MSMEs, the Nigerian economy suffers,” he said.

The Minister of State for Industry, Trade and Investment, Sen. John Eno, expressed the government’s eagerness to support initiatives that promote the welfare of Nigerians. He pledged the government’s continued commitment to helping agencies fulfill their mandates and called for collaboration to remove barriers to MSME growth. “Collaboration is key to making this work,” he added.

Mr. John Uwajumogu, Special Adviser on Industry, Trade and Investment, also spoke about the benefits of supporting industries with finance to foster inclusive growth. Several beneficiaries of the scheme, including Akor Goddy, a vegetable farmer and vendor from Badagry; Angela Christopher, a nanny; and William Asuquo, a food vendor from Isolo, Lagos, shared their success stories at the event.

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