The Federal Government has unfolded N500mmillion growth fund to support small businesses in the Nigeria.

The Director-General of the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, Charles Odii, reaffirmed the Federal Government's commitment to empowering Micro, Small and Medium Enterprises, MSMEs, with affordable financing, business support and skills development.

Odii, in Abuja, announced a ₦500 million Growth Fund to provide zero-interest revolving loans to registered cooperatives, business associations and business development organisations.

He said the initiative followed nationwide consultations, where entrepreneurs identified access to finance as their biggest challenge.

The SMEDAN boss said the loans, repayable over 24 months without interest, will help businesses acquire equipment, expand operations and create jobs.

He added that funding will be based on the viability of each business proposal, while partnerships with development finance institutions will expand the funding pool.

Odii also disclosed that SMEDAN is reviewing the National MSME Policy to improve access to affordable credit, expand government procurement opportunities for small businesses and remove barriers to enterprise growth.

He described MSMEs as the backbone of Nigeria's economy, saying sustained investment in the sector remains key to job creation, poverty reduction and inclusive economic growth.

Meanwhile, stakeholders in the MSME sector are calling on the Federal Government to review the newly introduced tax law, warning that it could worsen the burden on small businesses already struggling with inflation, rising operating costs, unreliable electricity and foreign exchange challenges.

They say without urgent relief, more businesses could shut down, leading to job losses and slower economic growth.