The Coalition of Microlending and Cooperative Institutions in Nigeria (COMCIN) has officially unveiled a N100 million joint loan facility aimed at bridging the financing gap for small businesses.
Launched in partnership with NEAT Microcredit, the initiative is designed to bypass traditional commercial banking barriers by leveraging a network of grassroots micro-lending institutions. This ensures that funds reach Nigeria’s most vulnerable yet industrious economic players.
Targeting the informal sector, where micro-entrepreneurs often struggle to secure capital due to stringent collateral requirements, the facility channels funds through participating Microfinance Institutions to reach those at the base of the economic pyramid.
Speaking on behalf of the Chairman, Dr Iredele Oyedele, Executive Director of COMCIN, Mr Micheal Ogbaa, emphasized the coalition’s strength in its 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 stated.
Notably, about 90% of the beneficiaries are women, recognized as key drivers of family stability and local commerce.
“Our focus is on traders, service providers, and players in the informal sector. By supporting them, we are strengthening families and contributing to national development,” Ogbaa added.
The scheme offers low-interest rates and flexible repayment plans, allowing eligible SMEs with proven integrity and business records to access up to N5 million each.
The pilot phase has begun in Lagos and is already expanding to Abuja and Enugu, with plans to cover the South-West, South-East, and North-East regions. Twelve micro-lending institutions have benefited so far, with 85 more applications under review.
“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 noted.
With early beneficiaries reporting positive outcomes, COMCIN aims to attract larger funding from international development finance institutions and private investors.
“We have seen encouraging testimonies. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he concluded.
