Small Businesses to Benefit From FG’s N250 billion Loans in 2022

Small Businesses to Benefit From FG’s N250 billion Loans in 2022

  • Medium Scale Enterprises in Nigeria will soon benefit from the federal government's N250 billion loan facility
  • The facility is part of Nigeria's National Development Plan from 2021-2025 aimed at creating jobs and small business growth in the country
  • The loans will be disbursed by the Development Bank of Nigeria to also build the capacity of small businesses to access funds from commercial banks

The Nigerian government says it plans to expend about N250 billion as loans to Small and Medium Scale Enterprises (MSMEs) to drive job creation in the country.

A long-term plan

A Punch report said this is part of the National Development Plan 2021-2025. The federal government plans to increase the loan payment to the MSMEs from N190 billion to N440 billion.

Minister of Finance, Budget and National Planning, Zainab Ahmed
Minister of Finance, Budget and National Planning, Zainab Ahmed Credit: Zainab Ahmed
Source: UGC

According to the government, the loans are part of its plans at creating jobs and employment drive which is aimed at taking advantage of the youth population in the country who are mostly unemployed. Unemployment in Nigeria currently stands at 33 per cent and is high among the young demography.

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The report said the recommendation seeks to create linkages to open up the potential of high growth areas that is critical to job creation by showing and determining opportunities that have potential job creation.

Boost for small businesses

The plan will also support the visibility of MSMEs in order to drive growth and standard operating procedure.

The government, through the Development Bank of Nigeria, wants to provide technical assistance to partner with financial institutions to enhance MSME lending capacity, build their operational efficiency and also be able to access funding and grow their individual businesses.

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This is a question on the lips of many as the deadly virus has not only caused a global health crisis but also brought the global economy to its knee.

To answer the question, the Nigerian government has just announced two important social intervention programmes:


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