Grassroots Loan Initiative Aims to Boost Small Traders and Informal Businesses in Nigeria

A new ₦100 million lending programme has been introduced to help informal business owners and micro‑entrepreneurs overcome hurdles in accessing finance.

The funding initiative, set up by the Coalition of Microlending and Cooperative Institutions in Nigeria in collaboration with NEAT Microcredit, is designed to bypass the strict requirements of traditional commercial banks by channeling loans through local micro‑lenders.

Many small traders and service providers in the informal economy often find it difficult to secure loans because larger banks demand high‑value collateral. By using a network of grassroots lenders, the scheme seeks to ensure that the money reaches those who need it most.

According to officials, around 90 percent of prospective beneficiaries are women, whom the organisers view as key to family wellbeing and local economic activity.

Participants will benefit from lower interest rates and flexible repayment plans, and eligible small businesses with solid records can borrow up to ₦5 million each.

The pilot phase has already begun in Lagos, with plans to expand to Abuja, Enugu, and later to other regions across the country.

Organisers say the current fund is just the start of a broader vision to link funding partners with credible microfinance institutions nationwide.