The Federal Government has stated that it will begin disbursement of loans at a single-digit interest rate to Small and Medium Enterprises by the third quarter of 2025.
The Senior Special Assistant on job creation and MSMEs, Temitola Adekunle-Johnson, made this announcement at a Nationwide Townhall and Sensitization Programme on the Presidential Grant and Loan Scheme for MSMEs on Tuesday in Abuja.
He said the government is targeting the MSMEs with its intervention programmes because small businesses need an enabling environment and adequate financing to thrive.
Tola noted that SMEs remain the engine of the Nigerian economy, and collectively employ over 80 per cent of the nation’s labour force, and contribute nearly half of the national GDP.
Access to cheaper loans has been an recurring issue for small businesses and even large scale manufacturers in Nigeria.
This is due to the consistent monetary policy rate hike by the Central Bank of Nigeria. At its last Monetary Policy Committee meeting, the CBN raised MPR by 50 basis points to 27.25 per cent, stifling economic activities.
