New N100 Million Loan Scheme Offers N5 Million Funding for Nigerian SMEs
A significant new opportunity has been launched for small and medium-sized enterprises (SMEs) in Nigeria to access funding for business growth. The Coalition of Microlending and Cooperative Institutions in Nigeria (COMCIN) has unveiled a N100 million joint loan facility aimed at bridging the financing gap for small businesses across the country.
Partnership with NEAT Microcredit
The scheme, developed in partnership with NEAT Microcredit, offers low-interest loans of up to N5 million each to eligible SMEs. This initiative is specifically designed to bypass traditional commercial banking barriers by leveraging a network of grassroots micro-lending institutions to reach Nigeria's most vulnerable but industrious economic players.
Michael Ogbaa, COMCIN Chairman, emphasized the coalition's advantage in working closely with local communities. "Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more," Ogbaa stated.
Focus on Women and Informal Sector
A key feature of the scheme is its demographic focus, with approximately 90% of beneficiaries being women. COMCIN has identified women as primary drivers of family stability and local commerce in Nigeria. The facility primarily targets the informal sector, where micro-entrepreneurs often struggle to access capital due to strict collateral requirements from larger banks.
Ogbaa explained: "Our priority is traders, service providers, and participants in the informal sector. They drive much of the economy, and supporting them helps strengthen households and boost national development."
Expansion Plans and Current Status
The rollout has commenced in Lagos, with the pilot phase expanding to Abuja and Enugu. Further plans include coverage of the South-West, South-East, and North-East regions of Nigeria. Currently, twelve micro-lending institutions have already benefited from the scheme, while 85 additional applications are being processed.
COMCIN views the N100 million fund as the first step in a larger vision. "Our goal is to support at least 100,000 SMEs across the country," Ogbaa noted. "We are developing a platform that links funding partners with trusted micro-lending institutions, providing a dependable pathway for financial inclusion."
Future Funding and Accountability
The coalition aims to attract larger funding pools from international development finance institutions and private investors. Ogbaa concluded: "We have received positive feedback from initial beneficiaries. As we continue to show accountability and effective management, more institutions are likely to partner with us and provide funding."
Eligible SMEs can access up to N5 million each through this scheme, provided they demonstrate integrity and a solid business track record. The initiative offers flexible repayment plans alongside its low interest rates, making it particularly accessible to small business owners who have traditionally faced barriers in securing financing through conventional banking channels.
