The Nigerian federal government is implementing solutions to ensure loans to micro, small, and medium enterprises (MSMEs) can be disbursed within 14 days. The goal is to reduce the high mortality rate of businesses that often fold while waiting for prolonged loan approvals.
Temitola Adekunle-Johnson, Senior Special Assistant to the President, announced the 14-day target at the inaugural Job Creation and MSME Quarterly Communications Forum held Friday in Abuja. Adekunle-Johnson said the aim is to achieve single-digit interest rates on loans for MSMEs as the norm rather than the exception.
“We want MSMEs to be able to apply for a loan and get it approved in 14 days maximum, not six months, where some businesses fold up while waiting,” he explained. “Quick disbursements after efficient loan assessments will help reduce the bottlenecks MSMEs face running around seeking funding.”
Access Bank has pledged N50 billion over four years to fund skills acquisition for 5 million Nigerians under the Federal Government’s “YouThrive” job creation program in a related initiative to support MSMEs. The funds will build capacity, improve access to affordable financing, and provide digital, technical, and skills training for small businesses to thrive.
Head of Non-Financial Services at Access Bank, Chioma Ogwo, said the participating MSMEs will receive affordable 15% interest loans, grants, business mentorships, and idea exchanges. “We aim to empower 4 million MSMEs over 4 years, with 1 million gaining financing access annually,” Ogwo said.
The aid comes as recent flooding has displaced 3 million small business jobs, according to SMEDAN DG Charles Odii. New flood early warning systems should help businesses relocate before future flood events. SMEDAN is also helping MSMEs mitigate production costs and access low-cost rents to boost resilience and productivity.