Nigeria Launches $10 Billion Global Fund to Boost MSMEs

The federal government has recently revealed its plans to roll out a $10 billion global investment fund aimed at stimulating growth and development in Nigeria’s Micro, Small, and Medium Enterprises (MSMEs) sector.

The announcement was made by Dr. Doris Uzoka Anite, the Minister of Industry, Trade, and Investment, during the 2024 National MSME Conference in Abuja, which carried the theme, “GROW Nigeria: Sustaining a Digital and Innovative Driven Economy.”

In her speech, Dr. Anite emphasized that the $10 billion global investment fund will serve as an equity funding initiative designed to boost innovation and provide much-needed capital to MSMEs.

This initiative is part of the federal government’s broader strategy to support MSMEs, which are critical to Nigeria’s economic development.

She highlighted that the government is acutely aware of the financial challenges faced by MSMEs and is working to address this issue through several innovative funding mechanisms.

“As part of efforts to drive growth and development of MSMEs, we are launching a $10 billion global investment fund which is an equity funding that will stimulate innovation and fund capital,” the minister stated.

She further explained that the government has set aside a N200 billion Presidential Loans and Grant Scheme to provide easier access to finance, acknowledging that one of the most significant barriers to MSME success in Nigeria has been access to funding.

In addition to financial support, the minister also stressed the importance of building robust infrastructure, both physical and digital, for a thriving economy.

According to her, expanding access to high-speed internet, introducing 5G networks, and leveraging cloud technologies will be critical in allowing Nigerian MSMEs to integrate into the global digital marketplace.

She shared that Nigeria is now set to benefit from the Joint World Trade Organization-World Bank Digital Trade for Africa (DTA) project, which will support the country’s efforts in improving digital connectivity infrastructure and digitalization in both the public and private sectors.

“To this effect, my Ministry has secured the support of the Joint WTO-World Bank Digital Trade for Africa (DTA) project where Nigeria will be supported with digital connectivity infrastructure, digitalization across the public and private sectors in Nigeria, and the development of policies, strategies and tools to enhance Nigeria’s connectivity to the digital world,” she stated, underscoring how these technological advancements will bolster MSME participation in the global economy.

The government is also actively working to improve the ease of doing business for MSMEs. As part of these efforts, Dr. Anite noted that the Corporate Affairs Commission (CAC) now offers 24-hour business registration services for MSMEs, in partnership with companies like Moniepoint.

She announced that more than three million businesses have already been registered through this streamlined process, making it easier for small enterprises to formalize their operations and access various government and private sector resources.

Charles Odii, Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), also spoke at the event, shedding light on the need for capacity building and mentorship alongside financial support.

He pointed out that while financing remains a core challenge for MSMEs, many small businesses also struggle with a lack of access to mentors and capacity development programs.

To address these issues, SMEDAN has partnered with the German international development agency GIZ to implement rapid capacity-building programs across Nigeria.

“Therefore we commenced rapid capacity building in partnership with GIZ and also through the One Local Government, One Product initiative, we are giving interest-free loans to MSMEs through cooperatives,” Odii explained.

He further shared that the GROW (Guidance Resources Opportunities Workforce Support) initiative has been a critical tool in helping small businesses gain access to finance, including partnerships with financial institutions such as the Bank of Industry (BoI) for N1 billion and Sterling Bank for N5 billion.

SMEDAN has also secured partnerships with state governments like Enugu and Katsina, which have provided N1 billion each to support MSMEs within their jurisdictions.

President Bola Ahmed Tinubu, represented at the event by the Secretary to the Government of the Federation, Senator George Akume, emphasized the government’s commitment to ensuring that MSMEs remain central to Nigeria’s economic agenda.

He reiterated that the government is aligning its Ministries, Departments, and Agencies (MDAs), along with state-level stakeholders, to harmonize their efforts and ensure that MSMEs receive the priority they deserve.

“Government is working to ensure that all MDAs of the federal government, as well as state stakeholders, are better aligned and their efforts harmonized to prioritize MSMEs which are the key to unlocking Nigeria’s economic potential,” said President Tinubu, underscoring the central role that MSMEs play in driving economic growth and development in the country.

Through the combined efforts of the federal government, private sector collaborations, and international partnerships, the government hopes that these initiatives will not only lead to an increase in MSME growth but also spur job creation, stimulate innovation, and ultimately drive Nigeria’s broader economic development in the coming years.

With the upcoming $10 billion global investment fund and other supportive measures in place, Nigeria’s MSME sector is positioned to make significant strides towards sustainable growth and development.