FG to launch de-risking fund in May to ease loan access for SMEs 

Special Adviser to the President on Job Creation and MSMEs, Mr Temitola Adekunle-Johnson, made this known on Saturday at the 2025 International Women’s Day event organised by the Nigerian Association of Small and Medium Enterprises (NASME) in Abuja, as reported by the News Agency of Nigeria (NAN).

He said the initiative is part of the Tinubu administration’s plan to address high lending rates—currently as high as 28% to 30%—which continue to stifle MSME growth.

“In the month of May, we are going to be launching two very important schemes. One is the de-risking fund for SMEs. 

“We are encouraging state governments and our commercial banks to come together to ensure that SMEs are able to get loan facilities for less than the ridiculous 28% or 30%,” he stated.

Adekunle-Johnson said the fund would operate as a risk-sharing mechanism, allowing state governments and banks to jointly provide loans at lower interest rates. While he did not commit to a specific rate, he said the goal is to offer much lower rates than what is currently available in the market.

He added that the de-risking fund would also serve as a buffer for small businesses facing the impact of international trade challenges, such as the 14% tariff imposed by the United States on certain Nigerian goods.

The Federal Government also announced plans to expand its network of MSME shared facility hubs across the country, aiming to provide small businesses with affordable access to international-standard equipment in sectors such as ICT, agriculture, and fashion.

These hubs are part of a broader initiative to enhance productivity and competitiveness among micro, small, and medium-sized enterprises.

Adekunle-Johnson said 10 hubs have been established so far, with plans to add 8–10 more by year-end, bringing the total to around 20.

Echoing these concerns, NASME’s National Women Coordinator, Dr Beatrice Benjamin, urged swift and deliberate action from both the government and financial institutions. She stressed the need for tailored support models and infrastructure, noting that while policies exist, implementation remains weak.