Nigeria: SMEDAN, Sterling bank unveils N5 billion single interest loan for small businesses

By InstinctBusiness Jun 14, 20240

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in collaboration with Sterling Bank Ltd., introduced a N5 billion initiative named Databanc, aimed at closing financial gaps for small businesses.

Databanc, designed to provide Nano, Micro, Small, and Medium Enterprises (NMSMEs) with access to single-digit interest loans, was launched in Lagos with the theme “Building with Data: Promoting Economic Growth through Data-Driven Insights.”

SMEDAN’s Lagos State Manager, Mr. Bunmi Kole-Dawodu, highlighted that this funding tool aims to deliver targeted support to small businesses, improving their access to markets and essential resources for entrepreneurial success.

Additionally, the initiative seeks to enhance Nigeria’s export potential by offering precise data to foster the growth and sustainability of nano enterprises.

He noted that SMEs have historically struggled to access financial support, a challenge this initiative aims to overcome.

He stated, “Now this platform would provide accurate data on nano, micro and small businesses in Nigeria while facilitating the requisite business support for these businesses.”

“It is important to have the support of business membership organisations to help encourage members to go on the platform and register to foster data-driven insights,”

The Director General of SMEDAN, Mr. Charles Odii, emphasized the importance of data for the agency in making informed economic decisions to strengthen the small business ecosystem.

He stated that as the leading force for livelihood enhancement, SMEDAN will continue to bridge the gap between the government and small businesses.

He said, “One thing we have observed is that businesses are not responding or taking advantage of the various interventions out there for them.”

“Databanc as a platform would help build products’ knowledge about small businesses and it is very important for entrepreneurs to be aware of this to help grow their businesses”.