SMEDAN, Partners Launch N50m Loan Scheme to Boost 6,122 Businesses

SMEDAN, Partners Launch N50m Loan Scheme to Boost 6,122 Businesses

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in collaboration with development and financial partners, has launched a N50 million dedicated loan facility aimed at boosting 6,122 trained entrepreneurs across Nigeria.

The scheme, unveiled on Tuesday in Abuja, is designed to provide single-digit interest loans to beneficiaries of the Inspire–Create–Start–Scale (ICSS) entrepreneurship programme.

The facility is supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Kaduna Business School and GOPA Worldwide Consultants, with Jaiz Bank managing the loans.

The initiative brings together government officials, development partners, financial institutions and private sector stakeholders in a coordinated effort to close the long-standing financing gap facing Micro, Small and Medium Enterprises (MSMEs).

Minister of Youth Development, Ayodele Olawande, described the facility as a strategic response to one of the biggest challenges confronting young Nigerians; limited access to finance.

“This gathering is important because it speaks directly to one of the greatest challenges facing our society, particularly young people and underserved communities; access to finance and sustainable economic opportunities,” he said.

Olawande noted that Nigeria is filled with creative and ambitious young people, but many lack the structure and support needed to transform ideas into viable enterprises.

He stressed that programmes like the ICSS loan scheme are deliberate investments in long-term economic growth.

“They are not merely charitable gestures; they are strategic investments in people, productivity and long-term development,” the minister added.

According to him, enterprise development must combine training, mentorship, market access and affordable capital to produce measurable impact.

He emphasized that government’s focus remains on high-potential sectors such as agriculture, manufacturing, technology and the creative industry.

Director-General and Chief Executive Officer of SMEDAN, Charles Odii, said the agency is determined to ensure that entrepreneurship training does not end in certificates but translates into capital.

“What we’re doing here today is significant. It’s not enough to just train people. Everyone who has been trained, we want to make sure that training makes capital,” Odii said.

He explained that many financial institutions often complain that small businesses lack the capacity to access funding. To address this, SMEDAN developed the ICSS curriculum as a standardized and comprehensive entrepreneurship training model that prepares participants to meet global financing standards.

“When you’re done with that curriculum, almost immediately you can unlock any financing anywhere in the world,” he stated.

Odii disclosed that while about 100 beneficiaries will access funding in the pilot phase, the broader target is 6,122 ICSS graduates nationwide.

“We’re targeting 6,122 people who have graduated from the course. And each of the 6,122 people that need financing, we make sure that we fund them,” he said.

The DG added that the loans would focus on asset financing, enabling entrepreneurs to acquire equipment such as laptops, generators and machinery needed to scale their businesses.

Speaking on behalf of the German Government, Dr. Karen Jansen, Head of Development Cooperation, said access to finance remains one of the biggest constraints facing MSMEs despite improvements in entrepreneurial capacity.

“While entrepreneurial capacity is essential, we all recognise that training alone is not enough. Access to finance remains one of the most significant constraints facing MSMEs,” she said.

She disclosed that up to N50 million has been committed for the pilot facility, offering START loans ranging from N250,000 to N2 million and SCALE loans from N1 million to N5 million.

Jansen described the integrated structure of training, mentorship and responsible financing as a strong risk-mitigation model that increases the likelihood of repayment and sustainability.

One of the beneficiaries, Rukayat Yusuf, who operates in natural cosmetics and agro-processing for export, expressed optimism that the loan would expand her production capacity.

“An initiative like this definitely is going to help a lot of women MSME like mine… The facility financing I’m getting today would help me to further be able to produce more and enrich more markets,” she said.

Stakeholders said the success of the scheme would depend on effective monitoring, repayment discipline and expansion to all 36 states and the Federal Capital Territory.

With the launch of the facility, SMEDAN and its partners say they are moving beyond rhetoric by linking structured training directly to affordable financing; an approach expected to strengthen Nigeria’s MSME ecosystem and drive inclusive economic growth.