FG unveils de-risking funds for MSMEs as over 60,000 applications come in for MSME award

• One of the astir commonly identified challenges to tiny businesses is entree to recognition needed to scale
• The national authorities has taken a bold measurement to lick this for SMEs successful Nigeria by creating a de-risking fund
• Thanks to the fund, tiny concern owners tin expect to get entree to backing from the day of launch

Legit.ng journalist Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful concern reporting crossed integer and mainstream media.

Several surveys person identified entree to concern arsenic a cardinal occupation hindering the maturation of micro, small, and mean enterprises successful Nigeria.

In a bid to code this issue, the federal government has announced that it volition motorboat a de-risking fund.

This money volition service a azygous intent – to marque MSME loans much affordable and accessible.

Nigeria presently has a benchmark involvement complaint of 27.50%, with banks giving retired concern loans astatine implicit 30%. Photo credit: CBN
Source: Getty Images

Speaking astir the inaugural astatine an lawsuit organised by the Nigerian Association of Small and Medium Enterprises, Special Adviser to the President connected Job Creation and MSMEs, Temitola Adekunle-Johnson, noted that it volition motorboat successful May, 2025.

Adekunle-Johnson explained that the involution became indispensable due to the fact that precocious lending rates successful the state person made it hard for tiny concern owners to entree recognition to standard oregon turn their business.

Legit.ng reported that adjacent though the benchmark involvement complaint is pegged at 27.50%, several banks successful the state were offering loans to concern owners astatine rates arsenic precocious arsenic 39%, making it astir intolerable for them to cope.

FG to motorboat de-risking money for MSMEs

Providing much penetration into the initiative, Adekunle-Johnson noted that determination would beryllium improved collaboration betwixt commercialized banks and the governments astatine antithetic levels to make a much inclusive fiscal strategy wherever SMEs can entree affordable credit.

He besides disclosed that determination are ongoing plans to make an further 10 MSME hubs crossed the state earlier the extremity of 2025, the PUNCh reports.

NASME President, Dr Abdulrashid Yerima lauded the de-risking money scheme, describing it arsenic a important measurement to assistance unlock the afloat potentials of tiny and mean standard businesses successful Nigeria.

He reiterated the value of the scheme, noting that it would trigger occupation instauration and assistance Nigeria connected the thrust to diversify from oil.

Yerima besides urged the authorities to see circumstantial and targeted involution programmes for women-owned businesses.

An earlier study from Legit.ng revealed that funding for female-led businesses has reached an all-time low, with pistillate CEOs lone raising $48 cardinal crossed Africa successful 2024, portion their antheral counterparts raised $2.2 billion.

President Bola Tinubu's Renewed Hope Agenda has rolled retired a fig of initiatives to enactment tiny businesses successful the past 2 years. Photo credit: State House
Source: Twitter

FG receives 60,000 applications for MSME awards

In related news, the portal for the submission of applications for the 2025 National MSME Awards opened connected Friday, March 7, 2025, pursuing a property league by the Awards Committee.

Three weeks later, Legit.ng confirmed that implicit 60,000 applications had been received from tiny concern owners with agricultural-based enterprises starring the pack.

Winners of the grant volition reportedly spell location with astir N700 cardinal worthy of prizes, including cars, shops, and houses.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng