FG, SMEDAN present fund to finance over 6000 youth entrepreneurs
FILE: The Minister of the Federal Ministry of Youth Development, Ayodele Olawande
Olawande assures of government’s readiness to ensure that training programmes are translate into real economic opportunities.
The Federal Government on Tuesday presented the GROW Fund to provide affordable financing for over 6,000 young entrepreneurs trained under the Inspire, Create, Start and Scale programme, in a move channelled to tackle the persistent funding gap confronting micro, small and medium enterprises in Nigeria.
The initiative, powered by the Small and Medium Enterprises Development Agency of Nigeria, was unveiled in Abuja.
The event was in partnership with the German Society for International Cooperation, the Society for Organisation, Planning and Training and the Kaduna Business School.
Speaking at the official unveiling, the Minister of Youth Development, Ayodele Olawande, said the government was committed to ensuring that training programmes for young Nigerians translate into real economic opportunities.
He noted that access to finance remained a major constraint to youth-led businesses, stressing that the new facility would address the challenge.
Olawande said the ministry was implementing reforms to ensure that skill development programmes deliver measurable results.
“At the Ministry of Youth Development, we are addressing this through several initiatives, particularly our effort to build a Nigerian Coursera through the Nigerian Youth Academy. This initiative is increasing access not just for young people but also for practical skills, digital accountability and enterprise development.
“But we know that training must connect to opportunities. Skills must be connected to capital,” he said.
He criticised past interventions that focused heavily on training without tangible economic outcomes.
“For over 40 years in this country, young people have not been able to see or touch government. It has always been about training, training and more training. Before you know it, agencies claim to have trained millions and even billions of people. But the young people cannot feel the impact.
“We believe enterprise development must connect directly with opportunities. When young people are properly trained, structured and linked with credible financial institutions, the outcome is business expansion, job creation and increased confidence,” he added.
The minister said the government was prioritising youth-led enterprises in key sectors.
“We are also providing funding support to youth startups, especially in agriculture, manufacturing, the creative industry and technology. The objective is straightforward — to prepare young entrepreneurs, connect them to markets and support them with finance.
“This programme rewards preparation, recognises discipline and provides structured support beyond sentiment,” he said.
He also disclosed that the government would deepen collaboration with SMEDAN and other institutions to scale the initiative nationwide.
Olawande expressed optimism that the initiative would help reposition Nigerian youth as drivers of economic transformation.
“With partnership, coordination and discipline, we can build a Nigeria where young people create value, build businesses and compete across Africa. The road may be gradual, but the destination is certain,” he said.
In his address, the Director-General of SMEDAN, Charles Odii, said the GROW Fund was designed to close the gap between training and access to capital.
“Everywhere you go, you see small businesses that have received one form of training or another. But it is not enough to just train people. Training must meet the capital. “We are targeting no fewer than 6,122 people who have graduated from the course, and for each of the 6,122 people who need financing, we will make sure that we fund them. Financing in this part of the country, we know it is very expensive and also very scarce,” he said.
He explained that the ICSS curriculum was developed to equip entrepreneurs with the skills required to access financing.
“Some banks tell us they have money but our people are not equipped enough to unlock the funding. So we created a standardised training. When they complete the curriculum, they can now unlock financing.
“One of the entrepreneurs who completed the programme secured about $40m in a pitch competition. The judges said it was the best growth plan they had ever seen,” Odii stated.
According to him, the new funding window would offer affordable, single-digit interest loans.
“Financing in Nigeria is very scarce and also expensive. So we are making available affordable financing for our small businesses because when they get this support, they grow and create jobs,” he said.
He added that although about 100 beneficiaries would receive initial funding, the programme would be scaled across the country.
“We are targeting 6,122 graduates. As we grow and expand, we will ensure financing is available for each of them. We have already conducted training in Niger, Edo, Enugu, Abuja, Lagos and Kano, and we are expanding to other states.
“This is the time to stop paying lip service to small business development. Funding must become an integral part of training,” he said.
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 initiative was implemented through the Deutsche Gesellschaft für Internationale Zusammenarbeit, adding that the programme had been deployed in several states.
“The results speak for themselves. The increasing demand confirms that this structured approach addresses the needs of entrepreneurs at different stages of their journey.
“While entrepreneurial capacity is essential, training alone is not enough. Access to finance remains one of the most significant constraints facing MSMEs,” she said.
According to her, the dedicated loan facility offers structured support, mentorship and responsible financing.
“This integrated model demonstrates how public institutions, financial partners and development cooperation can strengthen Nigeria’s MSME ecosystem,” she added.
A representative of Jaiz Bank, the financial institution managing the fund, described the GROW Fund as a strategic intervention to enhance productivity and financial inclusion.
“This fund represents more than capital. It signifies opportunity, empowerment and a renewed commitment to strengthening Nigeria’s SMEs. Beneficiaries must use this responsibly to build sustainable ventures,” the bank said.
Nigeria’s MSME sector, which accounts for a significant share of employment and economic activity, continues to face major challenges, including access to finance, infrastructure gaps and high cost of borrowing.
According to official data, the country has over 39 million small businesses, yet only a fraction have access to formal credit.
Business owners have consistently called for innovative financing models to support startups and young entrepreneurs, particularly as Nigeria grapples with rising youth unemployment.
The ICSS programme is part of the federal government’s broader strategy to boost enterprise development, expand industrial capacity and promote inclusive growth.
