Abuja: The Nigeria Association of Small and Medium Enterprises (NASME) has called for the institutionalisation of intervention funds as revolving schemes to ensure sustainable financing for Micro, Small and Medium Enterprises (MSMEs) in Nigeria. Dr Abdulrashid Yerima, President of NASME, made the call during a panel discussion at the ongoing 2025 MSME Forum in Abuja.
According to News Agency of Nigeria, Yerima stated that the practice of disbursing intervention funds as one-off measures was not sufficient to address the long-term challenges faced by MSMEs, especially in a volatile economic environment. He advocated for a revolving fund mechanism, suggesting that intervention funds should not be one-time disbursements but should be structured in a way that ensures continuity, allowing for ongoing access as repayments are made.
Yerima acknowledged the positive impact of past government interventions through the Bank of Industry (BOI) and other platforms on businesses. However, he emphasized the need to scale up and sustain such efforts through long-term planning. He also called for a national MSME financing framework that aligns with Nigeria’s industrial, trade, and youth employment strategies, leveraging donor funds and public resources to de-risk private capital, which could attract more private sector participation in MSME funding.
He highlighted the importance of the newly established Credit Guarantee Company, describing it as a critical development for small businesses. Yerima noted that the credit guarantee scheme is essential, especially as MSMEs are considered high-risk by conventional lenders. He also urged financial institutions like BOI and the Credit Corp to simplify loan requirements and ensure MSMEs are prepared to access available financial products.
Yerima stressed the need for targeted support to critical sectors such as agriculture, manufacturing, logistics, and services, underscoring their interconnectedness in building a resilient economy. He called on the government to subsidise and capitalise MSME funds, ensure low interest rates around three percent, and invest in capacity building to improve loan repayment and business sustainability.
On regional cooperation, Yerima advocated for the development of cross-border financing tools to support MSME trade across Africa under the African Continental Free Trade Area (AfCFTA). He mentioned engagement with other SME associations across ECOWAS and beyond to ensure African MSMEs are not left behind in the regional integration and trade drive.
Mrs Nike Kolawale, Executive Director of Operations at Credicorp, reiterated the importance of collaboration between state-level MSME leaders and Credicorp to drive grassroots engagement. She mentioned efforts to establish a robust national credit rating and verification infrastructure to support small businesses and ensure transparency in credit administration.
Mr Peter Shivute, Executive Director for MSME Development and Export Promotion at the Namibia Investment and Development Board, emphasized unity among African economies for progress in trade and development. He highlighted Namibia’s natural advantages in solar energy and emerging industries and called for strategic industrialisation and smarter trade policies under AfCFTA.
Mrs Ogo Akabogu, Divisional Head of North Central at BOI, also expressed the bank’s commitment to the growth of the sector. She indicated that BOI was exploring ways to shorten the turnaround time for assessing loans to benefit small business owners.
