Nigeria’s Small Businesses to Access Single-Digit Loans by Late 2025, Government Pledges
In a significant move to support Nigeria’s small and medium-sized enterprises (SMEs), the Federal Government announced plans to disburse loans at single-digit interest rates by the third quarter of 2025. Temitola Adekunle-Johnson, Senior Special Assistant on Job Creation and MSMEs, disclosed this at a Nationwide Townhall and Sensitisation Programme on Tuesday, underscoring the administration’s commitment to creating a more enabling financial environment for SMEs.
“SMEs are the backbone of Nigeria’s economy, representing over 80 percent of our workforce and nearly half of the national GDP,” Adekunle-Johnson said. “To sustain this vital sector, we must address the long-standing issues of access to affordable financing.”
The plan comes at a time when Nigerian businesses face record-high borrowing costs. The Central Bank of Nigeria’s recent rate hikes, pushing the monetary policy rate to 27.25 percent, have created a challenging landscape for SMEs. High interest rates, combined with strict collateral requirements, have often kept small businesses from accessing loans, hindering their growth and competitiveness.
Adekunle-Johnson explained that the new loan scheme will partner with financial institutions, including Access Bank, Wema Bank, and the Bank of Industry, to provide SMEs with loans at single-digit interest rates. “By Q3 2025, small business owners across all states will have the opportunity to secure these affordable loans,” he stated, adding that 18 state governments have already signed on to support the programme.
“This is about creating a system where a business owner can approach a bank, demonstrate their financial credibility, and access financing without oppressive interest rates. SMEs don’t need token gestures; they need a structure that allows them to build their business with confidence,” he emphasised.
In his address, Minister of Information and National Orientation, Mohammed Idris, acknowledged the economic challenges created by recent government reforms but noted the importance of these interventions in supporting Nigerian businesses through the transition. “While these bold reforms have caused temporary hardships, we are committed to mitigating the impact through strategic support measures like the single-digit loan programme,” he said.
Other ongoing initiatives were highlighted, including N200bn in loans and N50bn in one-off grants for the smallest businesses, while the second phase of N75bn is designated for micro, small, and medium-sized enterprises (MSMEs). Larger manufacturers will also benefit, with a final phase of N75bn to support large-scale industrial operations.
The Minister further assured entrepreneurs that accessing these facilities will not require insider connections, stating that applications will be handled transparently under the Tinubu Social Intervention Programmes. The government is concurrently hosting town hall meetings across Nigeria’s six geo-political zones to better understand SMEs’ needs and inform future policies.
