The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched a new initiative called the Grow Fund for Small Businesses in Nigeria – a N500 million zero-interest loan fund for micro, small, and medium enterprises (MSMEs).

SMEDAN Director-General Charles Odii announced the fund in Abuja during the 2026 World MSME Day celebrations.

Unlike typical business loans, the money will not be given directly to individual entrepreneurs. Instead, it will be disbursed through cooperatives, trade unions, and business associations. Odii explained that this approach improves accountability and ensures that the funds get to genuine business owners who need them.

“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,” Odii said.

Beneficiaries can use the fund to boost working capital, secure workspaces, or buy tools and equipment for their businesses. Each association will agree on repayment terms with SMEDAN, allowing the revolving fund to help more entrepreneurs over time.

Odii also noted that the initial N500 million will be expanded through partnerships with state governments, development partners, and other institutions willing to provide matching funds.

On other developments, Odii revealed that SMEDAN is reviewing a draft National MSME Policy before sending it to President Bola Tinubu for approval. Proposed reforms include single-digit interest loans for MSMEs, reserving 30 percent of government procurement for small businesses, and removing age limits from intervention programs.

The agency also plans to engage regulators on issues affecting small businesses, including advertising registration requirements.