In a strategic move to address the funding challenges within Nigeria’s Micro, Small, and Medium Enterprises (MSME) sector, the Small and Medium Enterprises Development Agency (SMEDAN), in collaboration with Sterling Bank, introduced a N5 billion fund in Abuja aimed at supporting businesses.
Mr. Charles Odii, the Director General of SMEDAN, highlighted the fund’s purpose, emphasizing its role in facilitating easier access to finance for Nigerian businesses, particularly addressing the capital constraints faced during the startup phase.
Odii stated, “The mandate of SMEDAN is to facilitate access to finance by MSMEs, which is why today, we have partnered Sterling Bank to sign this memorandum of understanding targeted at creating a N5bn fund at a single-digit interest rate for small businesses across different sectors.”
The Director General further outlined the swift implementation of the initiative, stating, “We will make these funds available in two weeks’ time and ensure that people key into it, and our target is 10,000 MSMEs, ensuring that the process is seamless across the country.”
Abubakar Suleiman, the Chief Executive Officer of Sterling Bank, underscored the bank’s commitment to corporate social responsibility by providing credit facilities at a single-digit interest rate.
Suleiman expressed optimism that out of the 10,000 MSMEs, 2,000 would experience significant growth, prompting them to seek commercial funding.
Regarding the loan application process, Suleiman assured that the bank would leverage technology platforms, specifically the ‘Banker’ platform, to ensure seamless access for business owners nationwide without the need for physical queues.
