In a move to drive Micro Small and Medium-sized Enterprises (MSMEs) growth in the country, the federal government has announced plans to ensure that operators of small businesses get a single-digit loan of N75 billion in 2024, Temitola Adekunle-Johnson, senior special assistant to the President on MSMEs and Job Creation has said.
In an interview with Channels Television, Johnson emphasised that President Tinubu’s administration will give attention to the growth of Nigeria’s MSME landscape.
“We will try to ensure that running a business in Nigeria is more seamless. SMEs should be able to walk into banks and access loans with as low as 9 percent interest rate,” he said.
He added that Tinubu’s administration understood the role of MSMEs in the country’s economy, and is willing to see that the single-digit loan is effectively carried out without delay and hiccups.
“For 2024 we are deliberate that running business in Nigeria is as seamless as possible. This is not going to be like other years,” he said, affirming the words of the President.
Nigeria is home to about 36.9 million MSMEs representing about 96.7 percent of total businesses with 67 percent youth-owned.
The office of the vice president had in the previous year announced that in partnership with the Bank of Industry (BOI), MSMEs are eligible for a single-digit loan.
“The government is working urgently to ensure quick access to single-digit loans for Nigerians small businesses within the shortest time possible,” Vice President Shettima had said in his statement to mark the 2023 World Micro Small and Medium Enterprises Day on June 27, 2023.
Nigeria’s Manufacturing Purchasing Managers Index saw a rise in December 2023 to 52.70 points from 48.0 points in November and is expected to be 50.60 points by the end of Q2 2024, according to Trading Economics global macro models and analysts’ expectations.
MSMEs play a major role in Nigeria’s economy. They are responsible for driving innovation, creating job opportunities, and creating competition in many sectors.
They contribute over 45 percent to the country’s Gross Domestic Product, with 98.8 percent of them in the micro cadre. They account for nearly 90 percent of the jobs in the country. Their effective function is therefore pivotal for growth.