The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has inked a groundbreaking partnership with Sterling Bank, earmarking a whopping five billion naira in loans to bolster small businesses nationwide. These loans come at a remarkable single-digit interest rate of 9%, presenting one of the most attractive credit options available for Nigeria’s NSMEs.
The Memorandum of Understanding (MOU) was officially sealed on Wednesday, November 22, at the SMEDAN Corporate Headquarters in Idu, Abuja. Mr. Charles Odii, the Director-General of SMEDAN, and Mr. Abubakar Suleiman, the Managing Director/CEO of Sterling Bank, formalized this game-changing agreement.
To access this financial support, small businesses are required to register with SMEDAN and complete an online application. Subsequently, the bank will process these applications for loan disbursement. This opportunity is open nationwide to small businesses across diverse sectors, offering loan options ranging from ₦250,000 to ₦2,500,000.
This strategic initiative signifies a monumental stride in fulfilling Mr. Charles Odii’s commitment to fostering prosperity by bolstering small businesses’ growth through enhanced financial access. Acknowledging the pivotal role SMEs play in revitalizing the Nigerian economy, this move strongly aligns with President Bola Ahmed Tinubu’s Renewed Hope agenda, focusing on growth-oriented economic reforms and support.
In continuation of SMEDAN’s pledge, following an agreement with the Anambra State government, the Odii-led agency is set to provide a 1 billion naira loan portfolio for small businesses in the state. Plans to forge additional partnerships with state governments and private entities echo the agency’s mission to broaden financial access for small businesses. The ₦5 billion pact with Sterling Bank signifies a definitive step towards fulfilling this commitment.
During the signing event, DG Charles Odii highlighted this as “an important milestone in our efforts to stimulate economic growth and drive prosperity by enhancing SME access to finance. We believe that this financial support, at an exceptionally competitive rate, will aid SMEs in expanding operations, hiring additional employees, and contributing to an overall upswing in beneficial trade and economic activities.”
The ₦5 billion loan agreement with Sterling Bank spans 24 months, with repayments commencing after a minimum three-month period, enabling small businesses to fully leverage this facility.
Sterling Bank’s MD, Mr. Abubakar Suleiman, emphasized the partnership’s aim to provide prompt financial access for small businesses, guiding them through a formalization process crucial for sustainability and access to funds. This includes pivotal strategies such as record-keeping, separating personal from business finances, and investing in competitive strategies for success.
