Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has launched a N500 million zero-interest revolving loan scheme, tagged ‘Grow Fund,’ to provide easier access to finance for members of business and professional associations across the country.

Director-General of SMEDAN, Charles Odii, who announced the initiative while speaking at the commemoration of the 2026 World MSME Day in Abuja, said the fund was created in response to demands from small business owners for affordable financing.

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“They all said that what they want the government to do for them at this time is to give them money.
“What we did after hearing that, we came down here and then we launched a fund called the Grow Fund,” Odii said.

According to him, the facility will be administered through registered associations and cooperatives as a revolving, interest-free loan scheme to ensure more entrepreneurs benefit from the intervention.

Explaining how the initiative would operate, Odii said the associations would manage the fund on behalf of its members.

“What that money will do, it will be a revolving fund. We will hand that money to the executives of associations.

“What they will do with that fund is make it available to members,” he stated.

Odii disclosed that the decision to establish the fund followed consultations with market leaders during the ongoing review of Nigeria’s MSME Policy.

He stressed that the review process was designed to ensure the new policy reflects the realities facing entrepreneurs before it is approved by President Bola Tinubu.

The SMEDAN boss described Micro, Small and Medium Enterprises as the backbone of Nigeria’s economy, noting that they contribute about half of the country’s Gross Domestic Product.

“SMEs, as we all know, are the bedrock of our society. SMEs contribute up to 50% of Nigeria’s GDP”.

Odii also gave an update on the agency’s institutional development, recalling commitments made in 2025.

“We had said last year that this year we are looking forward to getting our Polytechnic licence, starting our tertiary institution.

“We are looking forward to getting our School Acquisition Centre licence. We are looking forward to getting our Microfinance Bank licence,” he said.

He urged stakeholders to continue to hold the agency accountable for delivering on its commitments to Nigeria’s MSME ecosystem.