The Federal Government has launched the Grow Fund to provide affordable financing to over six thousand young entrepreneurs trained under the Inspire Create Start and Scale programme. This is a strategic move to close the persistent funding gap facing micro, small and medium enterprises in Nigeria.
The initiative is being implemented by Small and Medium Enterprises Development Agency of Nigeria and was officially unveiled in Abuja in partnership with German Society for International Cooperation. It is also supported by the Society for Organisation, Planning and Training and the Kaduna Business School.
Speaking at the launch, Ayodele Olawande, Minister of Youth Development, said the government was committed to ensuring that youth training programmes lead to real economic opportunities. He noted that limited access to finance remains one of the biggest challenges confronting youth led businesses. He explained that the Grow Fund was created to bridge this gap.
He said the ministry was reforming skills development programmes to ensure measurable outcomes and practical impact. According to him, the government is working to expand access to practical skills, digital accountability and enterprise development through the Nigerian Youth Academy. He added that training must be connected to opportunities. In addition, skills development must be linked to access to capital in order to deliver meaningful economic results.
The minister criticised previous interventions that focused heavily on training without tangible economic outcomes. He stated that for decades young people had been trained in large numbers without seeing the direct impact of such programmes in their businesses or livelihoods. He stressed that enterprise development must connect directly to opportunities. Explained further that when young people are properly trained, structured and linked with credible financial institutions, the result is business expansion, job creation and improved confidence.
Olawande further disclosed that the government is prioritising funding support for youth led enterprises in key sectors such as agriculture, manufacturing, the creative industry and technology. He added that the administration would deepen collaboration with SMEDAN and other institutions to scale the Grow Fund nationwide. He also expressed optimism that the initiative would reposition Nigerian youth as key drivers of economic transformation.
In his remarks, the Director General of SMEDAN, Charles Odii, said the Grow Fund was specifically designed to close the gap between training and access to capital. He explained that while many small businesses had received training in the past, the absence of affordable financing had limited their ability to grow.
According to him, no fewer than six thousand one hundred and twenty two graduates of the Inspire Create Start and Scale programme have been targeted for funding. He said financing in Nigeria remains expensive and scarce. He said that the Grow Fund would provide affordable loans to support business expansion and job creation. He added that the ICSS curriculum was developed to equip entrepreneurs with the skills required to access financing. He also noted that many small business owners lack the structure and documentation required by financial institutions.Nationwide job alerts
He revealed that one of the programme beneficiaries had secured about forty million dollars after presenting a strong growth plan at a pitch competition, which judges described as exceptional. He also confirmed that while the first phase would support about one hundred beneficiaries, the programme would be scaled nationwide to reach all eligible graduates. Training sessions have already been conducted in Niger, Edo, Enugu, Abuja, Lagos and Kano. In addition, there are plans to expand to more states.Employment consulting
Also speaking at the event, the Head of Development Cooperation at the German Embassy, Karin Jansen, said the German government supported the ICSS programme to promote inclusive economic growth. She explained that the programme is being implemented through Deutsche Gesellschaft für Internationale Zusammenarbeit. It has been deployed in several states across Nigeria.
Call For Applications: FG Oxford-TVET IDEAS Solar Training Program for Nigerians
She noted that the growing demand for the programme reflects the effectiveness of its structured approach to addressing the needs of entrepreneurs at different stages of their business journey. According to her, while entrepreneurial capacity is important, access to finance remains one of the most significant constraints facing micro, small and medium enterprises. She said the dedicated loan facility provides structured support, mentorship and responsible financing. She described the initiative as a strong example of how public institutions, financial partners and development cooperation can strengthen Nigeria’s MSME ecosystem.
A representative of Jaiz Bank, the financial institution managing the fund, described the Grow Fund as a strategic intervention aimed at boosting productivity and financial inclusion. The bank said the facility represents an opportunity for entrepreneurs to build sustainable ventures. Additionally, they called on beneficiaries to use the funding responsibly to grow their businesses.
Nigeria’s MSME sector, which accounts for a large share of employment and economic activity, continues to face major challenges including limited access to finance, infrastructure deficits and the high cost of borrowing. Official data shows that Nigeria has over thirty nine million small businesses. Yet, only a small fraction have access to formal credit.
Business owners and development stakeholders have continued to call for innovative financing models to support startups and young entrepreneurs. This is particularly important as the country grapples with rising youth unemployment and growing pressure on the informal economy.
Application link: https://smedan.gov.ng/icss/icss-registration/
🔗 Join Our WhatsApp Channel for Latest News
https://whatsapp.com/channel/0029Va9qtzXHwXbIyBGtjk2o
🔗 Join Our Telegram Channel
https://t.me/+WrSL9_-P-kBlZDM8
