No fewer than 200,000 small-scale businesses have expressed their interest in securing credit facilities totaling N5bn from the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). This development stems from a collaborative agreement between the agency and Sterling Bank, aiming to distribute loan options ranging from N250,000 to N2,500,000 at a single-digit interest rate of nine per cent, fostering the expansion of small businesses through improved financial access.
Charles Odii, the Director General of SMEDAN, hailed this collaboration as a significant milestone in stimulating economic growth and driving prosperity by enhancing SMEs’ access to finance. He emphasized the belief that the financial support, offered at a competitive rate, would empower SMEs to expand operations, hire additional employees, and contribute to a positive upswing in beneficial trade and economic activities.
The loan agreement with Sterling Bank spans a 24-month duration, with repayments commencing after a minimum three-month grace period, allowing small businesses to fully leverage the facility.
Providing an update, Peter Adeshina, the media aide to the SMEDAN Director General, informed the press that successful applicants had received emails from the bank. He stated that through these communications, additional details outlining the steps leading to disbursement within a few days would be finalized.
Adeshina mentioned, “We have received thousands of applications, with about 200,000 businesses and counting submitting their requests. The bank has reached out to successful applicants via email too.”
He further noted that the disbursement process is expected to commence shortly, stating, “The bank has commenced assessment, and applicants will receive information on how to proceed. The process has been streamlined, so we should commence disbursement in a matter of days.”
Successful applicants received a confirmation email that read, “Thank you for expressing your interest in the Sterling-SMEDAN N5bn program. Your application has been received, and we are pleased to inform you that you are qualified to be among the first to receive updates on the subsequent steps in the application process. In the meantime, we encourage you to gain a deeper understanding of the N5bn loan program.”
While SMEDAN received thousands of loan applications in two months and is on the brink of disbursement, the Federal Government, through the Ministry of Industry, Trade and Investment, has yet to finalize details of a N275bn palliative loan promised to manufacturers and micro, small, and medium-sized enterprises in the country, seven months after its announcement by President Bola Tinubu. This delay suggests a slow pace in project implementation.
In separate exclusive interviews, prospective beneficiaries expressed frustration over the lack of information on why the funds had not been disbursed. Femi Egbesola, the President of the Association of Small Business Owners, decried the slow pace of data collation by the supervising agencies, alleging that genuine businesses were intentionally discouraged from accessing the loans.
