As part of the strategic steps to uplift the small businesses, the Nigerian government has announced plans to roll out a De-risking Fund for MSMEs in May 2025. The initiative, revealed by Temitola Adekunle-Johnson, the Special Adviser to the President on Job Creation and MSMEs, is designed to make loans more accessible and affordable for small businesses across the country.
Currently, many MSMEs face serious challenges in accessing funding due to high interest rates—often as high as 30%. The new fund aims to address this issue by serving as a risk-sharing mechanism between the federal government, commercial banks, and state governments, allowing financial institutions to lower their lending rates and extend more credit to small business owners.
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Tackling Key Barriers to SME Growth
The De-risking Fund is part of a broader strategy to support Nigeria’s MSME ecosystem, which contributes about 48% to the country’s GDP and employs over 80% of the workforce. By easing credit access, the government hopes to stimulate entrepreneurship and reduce unemployment.
Adekunle-Johnson made the announcement during the 2025 International Women’s Day event organized by the Nigerian Association of Small and Medium Enterprises (NASME) in Abuja. He emphasized that many entrepreneurs have the ideas and drive to grow but are hampered by a lack of resources—especially affordable finance.
This move comes at a crucial time. Nigerian small businesses are facing increasing pressure from global economic challenges, including a recent 14% tariff hike imposed by the U.S. on select Nigerian goods. The fund is expected to provide a cushion for SMEs navigating these shocks.
Shared Facilities and a Focus on Women-Led Businesses
Alongside the De-risking Fund, the federal government is expanding its shared facility hubs—a project offering small businesses access to equipment and infrastructure in sectors such as ICT, agriculture, and fashion. With 10 hubs already running and 8 to 10 more planned for 2025, each center can serve up to 200 entrepreneurs daily, offering power and tools for as little as ₦1,000 per day.
NASME President Dr. Abdulrashid Yerima used the platform to call for more targeted support for women entrepreneurs, who make up over half the global workforce but remain underrepresented in Nigeria’s formal economy.
This new initiative marks a hopeful turn for Nigerian MSMEs, especially those led by women, paving the way for more inclusive and sustainable business growth.
