The Nigeria Association of Small and Medium Enterprises has urged the federal government to adopt a revolving fund system for MSMEs, saying one-time intervention funds are not sustainable. NASME President Abdulrashid Yerima made the call during a panel at the 4th African Union MSMEs forum in Abuja.
He said funds should be structured to ensure continuity, allowing businesses to repay and make the money available for others. Yerima also proposed a national MSME financing framework that aligns with Nigeria’s industrial and youth employment goals, and encourages private-sector participation.
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The NASME president welcomed the newly launched Credit Guarantee Company, describing it as timely for businesses often labelled high-risk by lenders. He called on banks to simplify loan conditions and urged government to subsidise MSME funds, lower interest rates to three percent, and support trade through AfCFTA.
Also speaking, Credicorp’s Executive Director of Operations, Nike Kolawale, highlighted plans for a nationwide credit rating system for small businesses. She stressed the need for collaboration with state-level MSME bodies to build grassroots engagement and long-term credit infrastructure.
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