SMEDAN, Sterling Bank sign Historic 5bn loan to Boast MSMEs in Nigeria

 

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has partnered with Sterling Bank Plc to sign a Memorandum of Understanding (MOU) for a 5 Billion Naira loan for MSMEs across Nigeria.

 

The Director General of Small and Medium Enterprises Development Agency of Nigeria, Charles Odii, stated this on  Wednesday in Abuja.

 

The DG said the agreement will focus on empowering Nigerian micro, small, and medium enterprises (MSMEs), with loans ranging from 250,000 to 2,500,000 Naira at an accessible and affordable single-digit interest rate.

 

Speaking at the signing of the agreement, Charles Odii, said, “This partnership with Sterling Bank is highly significant in SMEDAN’s journey to support and nurture the growth of MSMEs in Nigeria. By offering accessible financing options at a single-digit interest rate, we are creating accessible pathways for viable MSMEs to invest in their businesses. This partnership which is one of many to come, will serve to further develop a thriving ecosystem for small businesses that will drive innovation, create jobs, and diversify the economy in line with the vision of President Bola Tinubu’s administration.”

The statement stated that, this initiative is in line with President Tinubu’s commitment to propel economic prosperity among small businesses, an essential sector for the nation’s economic growth.

“Applications for the loan are now open, and interested MSMEs are encouraged to visit SMEDAN’s website to learn more and apply. With this initiative, SMEDAN and Sterling Bank reaffirm their commitment to the prosperity and growth of small and medium enterprises across Nigeria,” The statement noted.

Also, Managing Director, Sterling Bank, Abubakar Suleiman noted that He added that no collateral would be required in accessing the loan and a window of two years would be given for repayments.

The MD noted “We are going to deliver this through a technological platform because it has to be easy, it is not just about the interest rate but being able to access this funding without jumping through hooks from place to place.

“So, we have developed a platform called ‘Banker’ that is designed entirely to focus on small businesses, the platform allows you to access this financing, helps you to organise your business, keep your records and helps you to pay back when it’s time to pay back.

“In order words, any business that passes through this process, even though they fail to access or meet the standard to access the fund, will leave better off because they will understand why they were not able to access the funding and they can go back, make changes to their business practices and come back and access funding” he stated.