In a significant policy initiative aimed at alleviating financial challenges faced by micro, small, and medium enterprises (MSMEs), the Federal Government has announced plans to introduce a de-risking fund by May. The fund is designed to enhance access to loans and reduce borrowing costs for entrepreneurs.
This development was revealed by Temitola Adekunle-Johnson, Special Adviser to the President on Job Creation and MSMEs, during a recent engagement hosted by the Nigerian Association of Small and Medium Enterprises (NASME) in Abuja.
Adekunle-Johnson noted that the de-risking fund is part of a broader federal strategy to combat the high interest rates—ranging between 28 and 30 per cent—that continue to hinder credit accessibility for small business owners in Nigeria.
“We are set to introduce two major initiatives, with the de-risking fund being one of them. Its primary objective is to make loan acquisition more feasible and cost-effective for SMEs,” he said.
He further emphasized that the scheme would encourage synergy between commercial banks and state governments, ultimately working to lower interest rates and foster a more inclusive financial landscape for businesses.
In line with the administration’s ongoing support for enterprise development, Adekunle-Johnson also announced plans to increase the number of MSME hubs across the country from the current 10 to 20 before the year concludes.
Meanwhile, NASME President, Dr Abdulrashid Yerima, commended the government’s move, describing it as a positive development. However, he urged for more targeted efforts to empower enterprises led by women.
Yerima highlighted key barriers affecting women-owned MSMEs, including limited access to funding, entry into markets, and a lack of adequate capacity-building initiatives.
He stressed that the de-risking fund represents a pivotal step in unlocking the full capabilities of Nigeria’s SME sector, which remains a cornerstone of employment generation and economic diversification.
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