KEY POINTS

• Scheme targets grassroots entrepreneurs
• Women make up most beneficiaries
• Loans offer flexible repayment options

Coalition of Microlending and Cooperative Institutions in Nigeria has launched a micro loan scheme aimed at closing the financing gap for small businesses across the country. The initiative introduces a ₦100 million facility designed to reach entrepreneurs often excluded from traditional banking.

The micro loan scheme, developed in partnership with NEAT Microcredit, focuses on the informal sector where access to capital remains limited. Organizers say the structure allows funds to flow through grassroots institutions that already serve local communities.

Focus on underserved entrepreneurs

The program targets traders, service providers and small operators who struggle with collateral requirements imposed by commercial banks. Through participating microfinance institutions, beneficiaries can access up to ₦5 million with relatively low interest rates.

Notably, about 90 percent of recipients under the micro loan scheme are women. Coordinators say this reflects a strategy to support those seen as central to household stability and local commerce.

In addition, eligibility depends on business credibility and track record, ensuring that funds go to active and reliable operators. Early rollout has begun in Lagos, while expansion plans already include Abuja and Enugu.

Expansion plans underway

Program leaders say the micro loan scheme represents only the first phase of a broader funding strategy. So far, 12 institutions have accessed the facility, while 85 additional applications remain under review.

Officials aim to scale the initiative nationwide, targeting at least 100,000 small and medium enterprises. As a result, the coalition is positioning itself as a bridge between funding partners and micro-lending networks.

Meanwhile, organizers expect that demonstrated transparency will attract support from development finance institutions and private investors. They say early feedback from beneficiaries has been positive, reinforcing confidence in the model.

The micro loan scheme highlights a growing shift toward decentralized financing solutions. By leveraging local networks, the initiative seeks to expand financial inclusion and strengthen economic activity at the grassroots level.