In a move aimed at strengthening Nigeria’s small business sector, the Coalition of Microlending and Cooperative Institutions in Nigeria (COMCIN) has unveiled a N100 million joint loan facility in partnership with NEAT Microcredit. The initiative seeks to address the persistent financing gap faced by micro-entrepreneurs, particularly those operating outside the formal banking system.
Unlike traditional commercial banks, which often require substantial collateral and exclude grassroots operators, the facility leverages a network of local micro-lending institutions to reach Nigeria’s most vulnerable yet industrious economic participants. By channeling the funds through these community-focused institutions, COMCIN hopes to ensure that the support reaches those at the base of the economic pyramid.
Speaking on behalf of the Chairman, Dr. Iredele Oyedele, COMCIN’s Executive Director, Mr. Micheal Ogbaa, highlighted the coalition’s unique advantage: its close proximity to the people. “Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” Ogbaa said.
A notable aspect of the program is its focus on women, who make up roughly 90 per cent of the target beneficiaries. Recognizing women as primary drivers of household stability and local commerce, COMCIN is prioritizing traders, service providers, and informal sector operators. “By supporting these individuals, we are not only strengthening families but also contributing to broader national development,” Ogbaa added.
The scheme offers attractive terms for small and medium-sized enterprises (SMEs), including low interest rates and flexible repayment schedules. Eligible businesses with proven integrity and operational track records can access loans of up to N5 million each.
While the facility’s initial rollout has begun in Lagos, the pilot phase is rapidly expanding to Abuja and Enugu, with further plans to reach the South-West, South-East, and North-East regions. Already, twelve micro-lending institutions have benefited from the program, with 85 additional applications currently under review.
COMCIN emphasizes that the N100 million fund represents just the beginning of a broader vision. “Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa explained.
The coalition also hopes that the success of the pilot will attract larger investments from international development finance institutions and private investors. “Early beneficiaries have shared encouraging testimonies. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he concluded.
By tapping into grassroots networks and prioritizing underserved entrepreneurs, COMCIN’s initiative aims to not only expand access to capital but also foster sustainable growth within Nigeria’s informal economy.