Categories: BusinessEconomyNews

Lending Cost: FG Promises Single-digit Interest Loans For SMEs

The Federal Government has pledged to disburse single-digit interest loans to Small and Medium Enterprises (SMEs) by Q3 2025, addressing the long-standing challenge of high lending costs.

Temitola Adekunle-Johnson, the Senior Special Assistant on job creation and MSMEs, announced the plan during a Nationwide Townhall Meeting, emphasizing the initiative’s role in supporting Nigeria’s 41 million SMEs that employ over 80% of the workforce and contribute nearly half of the GDP.

Under the scheme, SMEs will gain access to affordable credit through partnerships with Access Bank, Wema Bank, and the Bank of Industry, with 18 state governments already expressing commitment to participate.

In addition to reducing interest rates, the government aims to create an enabling business environment for SMEs. Information Minister Mohammed Idris highlighted that the initiative aligns with the government’s economic reform agenda, offering relief amid fiscal challenges and expanding access to growth-enabling finance across Nigeria’s geopolitical zones.

Tayo Adelaja

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