New Opportunities Open for Small Businesses to Access up to N5m Business Loan
- A new opportunity has been launched for SMEs to access funding to grow their business
- The scheme, in partnership with NEAT Microcredit, offers low-interest loans of up to N5 million
- About 90% of beneficiaries are women, with the initiative expanding from Lagos to Abuja and other regions
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
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.
The scheme offers low interest rates and flexible repayment plans, with eligible SMEs able to access up to N5 million each, provided they demonstrate integrity and a solid business track record.
Source: Getty Images
The initiative, launched in partnership with NEAT Microcredit, is 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.
Punch reports that the facility primarily targets the informal sector, where micro-entrepreneurs often struggle to access capital due to strict collateral requirements from larger banks.
SMEs get another opportunity to access N100m loan
Michael Ogbaa, COMCIN Chairman, said the coalition’s advantage in working closely with local communities.
His words:
“Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more.”
A key feature of the scheme is its demographic focus: approximately 90% of beneficiaries are women, identified by COMCIN as primary drivers of family stability and local commerce.
Ogbaa added:
“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.”
Loan terms and expansion plans
Source: Getty Images
The rollout has commenced in Lagos, with the pilot phase expanding to Abuja and Enugu, and further plans to cover the South-West, South-East, and North-East regions.
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, the Nation reports.
Ogbaa noted:
“Our goal is to support at least 100,000 SMEs across the country. We are developing a platform that links funding partners with trusted micro-lending institutions, providing a dependable pathway for financial inclusion.”
He noted that COMCIN aims to attract larger funding pools from international development finance institutions and private investors.
He 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.”
Creditcorp for youth business
Earlier, Legit.ng reported that the Nigerian Consumer Credit Corporation (CREDICORP) has introduced YouthCred, a national loan program providing Nigerian youths with access to loans of up to N5 million to support their ambitions.
According to Ayodele Olawande, the Minister of Youth Development, the initiative is open to all young people, not only corps members, regardless of their background or status.
Nwagba described the programme as a 'credit revolution', adding that it seeks to change how young Nigerians think about money, borrowing, and financial responsibility, Guardian reports
Source: Legit.ng
