In a bid to strengthen Nigeria’s small business sector, the Coalition of Microlending and Cooperative Institutions in Nigeria (CMCI) has launched a N100 million joint loan facility.
The program, developed in partnership with NEAT Microcredit, is designed to overcome traditional banking barriers by channeling funds through a network of grassroots micro-lenders. It aims to empower the country’s most hardworking micro-entrepreneurs with the capital needed to expand and sustain their businesses.
The facility focuses on the unorganized sector, where microbusiness owners frequently find it difficult to obtain funding since larger banks have strict collateral requirements.
COMCIN makes sure that the money reaches people at the bottom of the economic pyramid by directing the N100 million to participating microfinance institutions.
The Executive Director of COMCIN, Mr. Michael Ogbaa, emphasized on behalf of the Chairman, Dr. Iredele Oyedele, that the coalition’s strength is found in its closeness to the people.
“Commercial banks often exclude people at the grassroots, but our members are positioned to reach them.”
This facility will empower them to do more,” Ogbaa stated.
The scheme’s demographic goal is among its most remarkable elements. Women make up around 90% of the beneficiaries, and COMCIN recognizes them as the main forces behind local business and family stability.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” Ogbaa added.
Low interest rates and flexible repayment options are provided by the program, which allows qualified SMEs with a track record of economic success and integrity to borrow up to N5 million apiece.
Although the rollout has started in Lagos, the pilot program is now spreading to Abuja and Enugu, with additional plans to reach the South-West, South-East, and North-East areas.
As of right now, 85 more applications are being handled, and twelve micro-lending institutions have already profited from the program. But the N100 million fund is only the start of a much bigger plan.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa noted.
COMCIN hopes to draw bigger funding pools from private investors and international development finance organizations as the pilot program shows efficiency and openness.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he concluded.
