The Federal Government on Tuesday launched the GROW Fund to provide affordable financing for over 6,000 young entrepreneurs trained under the Inspire, Create, Start and Scale programme.
The initiative, powered by the Small and Medium Enterprises Development Agency of Nigeria, was unveiled in Abuja. It is being implemented in partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit, the Society for Organisation, Planning and Training, and the Kaduna Business School.
Speaking at the launch, the Minister of Youth Development, Ayodele Olawande, said the government was committed to ensuring that youth training programmes translate into real economic opportunities.
He noted that access to finance remains a major constraint for youth-led enterprises.
“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 to practical skills, digital accountability and enterprise development,” he said.
“But we know that training must connect to opportunities. Skills must be connected to capital.”
Olawande 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. But the young people cannot feel the impact,” he stated.
According to him, the government is prioritising youth-led enterprises in agriculture, manufacturing, the creative industry and technology. He added that the ministry would deepen collaboration with SMEDAN and other institutions to scale the initiative nationwide.
Director-General of SMEDAN, Charles Odii, said the GROW Fund was designed to close the gap between training and access to capital.
“Training must meet capital,” Odii said, adding that the fund targets 6,122 graduates of the ICSS programme.
He explained that the standardised 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. When they complete the curriculum, they can now unlock financing,” he said.
According to him, the fund will provide affordable loans at single-digit interest rates. He noted that while about 100 beneficiaries would receive initial funding, the programme would be expanded across the country.
The Head of Development Cooperation at the German Embassy, Karin Jansen, said the programme was designed to promote inclusive economic growth.
She said the initiative demonstrates 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 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,” the bank stated.
Nigeria’s MSME sector accounts for a significant share of employment and economic activity. However, it continues to face challenges, including limited access to formal credit, infrastructure gaps and high borrowing costs.
Official data shows that Nigeria has over 39 million small businesses, yet only a fraction can access formal financing.
The ICSS programme forms part of the Federal Government’s broader strategy to boost enterprise development, expand industrial capacity and promote inclusive growth.
