FG to Launch De-risking Fund in May to Ease SME Loan Burden

Samuel Mobolaji

The Federal Government will in May 2025 unveil a de-risking fund designed to improve access to affordable loans for Micro, Small and Medium Enterprises (MSMEs) across the country.

The initiative, which forms part of the Tinubu administration’s efforts to tackle Nigeria’s persistently high lending rates, aims to reduce the financial pressure on small businesses struggling under interest rates as steep as 28 to 30 per cent.

Special Adviser to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, disclosed the plan during the International Women’s Day event hosted by the Nigerian Association of Small and Medium Enterprises (NASME) in Abuja.

Adekunle-Johnson said the fund would operate as a risk-sharing mechanism, encouraging collaboration between state governments and commercial banks to lower the cost of credit for small business owners. While specific rates were not disclosed, he stressed the goal is to offer loans at significantly more affordable rates than what is currently available in the market.

He added that the de-risking fund would also help shield small businesses from external trade disruptions, including the 14 per cent tariff recently imposed by the United States on select Nigerian goods.

Beyond financing, the Federal Government is expanding its network of MSME shared facility hubs nationwide to improve access to international-standard equipment for entrepreneurs in sectors such as ICT, agriculture and fashion.

So far, 10 hubs have been established, with another 8 to 10 expected by the end of the year. Each hub charges as little as N1,000 per day, offers uninterrupted power supply and can accommodate up to 200 entrepreneurs daily. Over 120,000 small businesses are reported to have benefitted from the scheme within the past year.

During the event, NASME President, Abdulrashid Yerima, called for stronger government-backed support for women-led businesses, noting that women make up 55 per cent of the global workforce and play a critical role in MSME development and economic growth.

Also speaking, NASME’s National Women Coordinator, Beatrice Benjamin, urged both government and financial institutions to adopt deliberate, gender-specific approaches to ensure women entrepreneurs receive improved access to finance, market opportunities, and capacity-building initiatives.