The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched the Grow Fund, a N500 million interest-free financing initiative aimed at supporting Nigerian MSMEs. During the 2026 World MSME Day commemorations in Abuja, Director-General Charles Odii explained that the capital would be distributed via cooperatives, trade unions, and business associations to ensure effective oversight and recovery.
Odii emphasized that this group-based lending model is intended to reach legitimate business owners while addressing the persistent lack of capital. By bypassing individual disbursement, the agency aims to ensure funds are used for essential needs like equipment acquisition, workspace procurement, and working capital. The agency plans to maintain the program as a revolving fund, with repayment schedules determined by the specific associations involved.
Future expansion of the fund will involve collaborations with state governments and development partners to provide additional matching capital. Furthermore, SMEDAN is currently updating the National MSME Policy for President Bola Tinubu’s approval. Proposed improvements include reserving 30 percent of government contracts for smaller firms, securing single-digit interest loans, and eliminating age requirements for intervention projects. The agency also intends to work with regulators to simplify business compliance and advertising registration processes.
