The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched the Grower’s Fund, a new financing initiative aimed at expanding access to affordable funding for thousands of Micro, Small and Medium Enterprises (MSMEs) across Nigeria.
The Director-General of SMEDAN, Mr. Charles Odii, announced the initiative during an engagement with the Commerce and Industry Correspondents Association of Nigeria (CICAN) and Civil Society Organisations (CSOs) in Abuja as part of activities marking the 2026 World MSME Day.
Odii said the Grower’s Fund is designed as a revolving, zero-interest loan scheme that will be disbursed through registered business organisations, trade associations, cooperative societies and unions rather than directly to individual entrepreneurs.
According to him, the association-based model is intended to strengthen accountability, improve loan recovery and ensure that the funds reach genuine business owners across the country.
“We are targeting these people because they are the ones that have businesses across the country, and we want to help these businesses continue to work together as clusters,” he said.
He explained that beneficiaries would be able to access the interest-free financing to increase working capital, acquire business tools and equipment, and secure workspaces needed to expand their operations.
“We are not giving the money to individuals directly. We are giving it to associations that understand their members and can manage the funds responsibly,” Odii added.
The SMEDAN Director-General noted that repayment terms would be agreed upon with each participating association, allowing flexibility while ensuring that the revolving fund continues to support more entrepreneurs over time.
SMEDAN Seeks Approval for SME Bank
Odii also disclosed that SMEDAN is seeking regulatory approval to establish a dedicated SME bank to improve access to finance for small businesses.
He said many MSMEs currently face significant challenges in obtaining funding because interventions often pass through commercial financial institutions, leading to delays and limiting access for vulnerable businesses.
According to him, the proposed SME bank will simplify access to financing and address one of the biggest constraints affecting business growth in Nigeria.
Speaking on the agency’s engagement with traders, Odii said SMEDAN is committed to developing policies based on the realities facing entrepreneurs.
“We visited traders at one of the markets today to engage directly with them because it is not enough to sit in offices and make policies without understanding their realities. Many of the challenges they raised border on financing, which is why we are launching the Grower’s Fund for Small Businesses in Nigeria,” he said.
N500 Million Seed Funding and Policy Reforms
The SMEDAN boss revealed that the Grower’s Fund will commence with an initial ₦500 million, with plans to expand the pool through partnerships with state governments, development partners and other institutions willing to provide matching funds.
He also called on state governments to collaborate with the agency in establishing training centres across the country to strengthen entrepreneurship development.
Odii further disclosed that SMEDAN is reviewing the draft National MSME Policy, which will be forwarded to President Bola Ahmed Tinubu for approval.
He said the proposed reforms include the introduction of single-digit interest loans for MSMEs, reserving 30 per cent of government procurement for small businesses and removing age restrictions from government intervention programmes aimed at supporting entrepreneurs.
The initiatives, according to SMEDAN, are part of broader efforts to strengthen Nigeria’s MSME sector, improve access to finance and drive inclusive economic growth.
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