Nigeria's Small and Medium Enterprises Development Agency (SMEDAN) has unveiled a ₦500 million zero-interest Grow Fund designed to provide affordable financing for Micro, Small and Medium Enterprises (MSMEs) across the country.
The initiative is aimed at helping businesses overcome one of their biggest challenges—access to affordable capital.
The announcement was made by SMEDAN Director-General Charles Odii during activities marking the 2026 World MSME Day, where he emphasized the agency's commitment to improving financing opportunities for entrepreneurs and strengthening Nigeria's small business ecosystem.
Unlike conventional loan programmes, the Grow Fund will provide financing without interest, making it significantly more affordable for eligible business owners seeking to expand their operations.
According to SMEDAN, the revolving fund will not be disbursed directly to individual entrepreneurs.
Instead, the agency will channel the financing through registered cooperatives, trade unions, business membership organizations, and recognized associations that understand the needs of their members and can help ensure proper loan management and repayment.
Officials believe the association-based model will improve accountability, reduce default rates, and ensure that the funds reach genuine business owners who need financial support to grow their enterprises.
Beneficiaries will be able to access loans ranging from ₦250,000 to ₦500,000 to finance working capital, purchase equipment, secure business premises, and expand their operations.
SMEDAN explained that repayment arrangements will be agreed upon with each participating association, allowing for flexible repayment structures while ensuring that the revolving fund remains sustainable and continues supporting more entrepreneurs over time.
The agency also disclosed plans to expand the initial ₦500 million fund through partnerships with state governments, development partners, financial institutions, and organizations willing to provide matching contributions.
Beyond financing, SMEDAN continues to pursue broader reforms aimed at improving the MSME sector, including expanding business formalization, strengthening enterprise development centres, improving access to markets, and reviewing Nigeria's National MSME Policy.
The Director-General noted that affordable financing remains one of the most pressing concerns raised by entrepreneurs across Nigeria, making the Grow Fund a timely intervention capable of supporting business sustainability and job creation.
Industry experts have welcomed the initiative, noting that interest-free financing can significantly reduce borrowing costs for small businesses while encouraging investment, expansion, and employment generation.
The programme complements other ongoing government efforts to strengthen Nigeria's MSME sector, including business formalization initiatives, entrepreneurship training, and expanded access to grants and affordable financing.
SMEDAN believes that stronger access to finance will enable more businesses to improve productivity, compete effectively within the African Continental Free Trade Area (AfCFTA), and contribute more significantly to national economic growth.
Entrepreneurs interested in benefiting from the fund are encouraged to work through registered cooperatives or recognized business associations while ensuring that their businesses are properly registered with SMEDAN to improve eligibility for government support programmes.
With zero interest, flexible administration, and plans for future expansion, the Grow Fund represents one of SMEDAN's latest efforts to bridge the financing gap facing Nigerian MSMEs and promote inclusive economic development nationwide.
DEADLINE
No application deadline has been announced.
Interested MSMEs should register with SMEDAN and monitor official updates for the opening of applications.