FG mulls de-risking fund for SMEs, expansion of MSMEs hubs
The Federal Government has announced plans to inaugurate a de-risking fund in May, aimed at improving access to affordable financing for Micro, Small and Medium Enterprises (MSMEs) across the country.
Temitola Adekunle-Johnson, Special Adviser to the President on Job Creation and MSMEs, made the announcement during the 2025 International Women’s Day event organised by the Nigerian Association of Small and Medium Enterprises (NASME) on Saturday in Abuja.
Adekunle-Johnson explained that the fund forms part of a broader strategy to address prohibitive lending rates and stimulate the growth of small businesses nationwide.
“In May, we’ll be unveiling two key schemes. One of them is the de-risking fund for SMEs,” he stated. “We are encouraging collaboration between state governments and commercial banks to ensure SMEs can access loans without having to pay the exorbitant 28 or 30 per cent currently demanded.
“That kind of interest rate is simply not viable. The idea is that when a state provides a facility, we find a commercial bank to match the funding. This will allow loans to be extended to SMEs at a much more affordable rate. While I can’t promise 9 or 10 per cent, I can confidently say it’ll be significantly below 28 per cent.”
He further explained that the fund is also intended to act as a buffer for small businesses dealing with the fallout of international trade challenges, including a 14 per cent tariff imposed by the United States.
While the Minister of Finance has already addressed some aspects of the tariff issue, Adekunle-Johnson noted that further measures are being considered to cushion the impact on affected businesses.
In addition, the presidential aide revealed plans by the Federal Government to expand shared facility hubs for MSMEs across the country. These hubs are designed as centres where entrepreneurs can access high-end equipment in sectors like ICT, agriculture, and fashion, among others.
“Last year, the President announced that we had established 10 facility hubs. By the end of this year, we expect to have completed another eight to ten. That means, by the close of 2025, we’ll have around 20 such hubs in operation,” he said.
At subsidised rates—as low as ¦ 1,000 per day—small business owners can make use of these facilities, which also guarantee reliable power supply to help meet production targets.
Each hub, according to Adekunle-Johnson, is designed to accommodate between 150 and 200 entrepreneurs daily. Over 120,000 MSMEs have benefited from the initiative within the past year alone.
He stressed that the initiative is driven by the private sector, with the government providing oversight to ensure transparency, efficiency, and proper execution.
He reaffirmed the Tinubu administration’s commitment to building a dynamic and resilient MSME ecosystem as a cornerstone of job creation and inclusive economic development.
Earlier at the event, NASME President Dr Abdulrashid Yerima made a strong case for immediate and tangible support for women-owned MSMEs, urging stakeholders to move beyond rhetoric and take decisive action.
Yerima noted the critical role women play in Nigeria’s MSME landscape and in the broader economy.
“Today we celebrate our women entrepreneurs in Nigeria and around the world, especially those within NASME. They are making remarkable strides, and we have consistently supported them,” he said.
Quoting a World Bank report, Yerima pointed out that women represent 55 per cent of the global labour force and remain indispensable to the growth of MSMEs and national GDP.
He identified key challenges confronting women entrepreneurs—including limited access to finance, markets, capacity-building opportunities, and weak corporate governance structures. He affirmed that NASME had prioritised tackling these obstacles.
“We present their needs to development partners and banks, and we facilitate the training they require,” Yerima added. “We also help them explore export opportunities through our Export Readiness Programme.”
Despite ongoing hurdles such as a 40 per cent tariff from the United States, Yerima said NASME is assisting women exporters in identifying new markets in Europe, Asia, and within the African Continental Free Trade Area (AfCFTA), through the Guided Trade Initiative.
Speaking during the event, NASME National Women Coordinator Dr Beatrice Benjamin expressed deep concern over the lacklustre implementation of policies meant to support women in business.
“There are policies on the books intended to support female entrepreneurs, but execution has been virtually non-existent,” she said. “We’re not gathered here to recite achievements—we’re here to demand concrete steps.
“We want infrastructure and business models that are tailored to women’s specific needs—support that understands our reality and is built around it.”
She also criticised the lack of basic infrastructure—such as electricity and internet access—in rural communities, which she said continues to restrict the potential of women in nano and micro enterprises.
“How many of our rural communities have regular power? How many women can access the tools or movable assets needed to secure funding? What we need now is serious intervention, not just more promises,” she said.
Benjamin acknowledged the Federal Government’s intent to engage more women in entrepreneurial initiatives but stressed that such engagement must be swift, intentional, and tailored.
“Development banks must establish dedicated programmes specifically for women. We’re done waiting for change—we’re calling for immediate, measurable action,” she said.
The NASME event brought together a wide array of stakeholders in the MSME space, all focused on evaluating the status of women in business and devising more inclusive, impactful strategies for economic empowerment.
