‘No collateral’ – Apply for free interest-free loan, FG tells Nigerians (See Amount)

As Nigeria’s economy shows signs of stabilization, thanks in part to the bold measures implemented by President Bola Ahmed Tinubu, positive developments are emerging for the nation’s citizens.

Among these is the increasingly stringent lending practices adopted by many banking institutions, which often require significant collateral.

This has resulted in a number of individuals being unable to access vital funding opportunities to grow their businesses. Click the link to continue reading the article.

In light of this situation, the Federal Government is set to initiate the disbursement of interest-free loans to smallholder farmers and businesses nationwide before the conclusion of 2025, as indicated by Hamza Ibrahim Baba, National Programme Manager of the Government Enterprise and Empowerment Programme (GEEP).

Mr. Baba announced this development during an engagement session with representatives of traders’ associations and stakeholders in the informal business sector in Kaduna recently.

He stated that the loans, with a maximum amount of N100,000 per beneficiary, are an integral component of the FarmerMoni scheme under GEEP, which aims to assist small-scale farmers engaged in poultry, aquaculture, livestock rearing, and crop production.

“This pilot phase is designed to support farmers throughout the nation, including those in Kaduna State,” Mr. Baba remarked.

Beneficiaries will be granted a six-month moratorium to allow for production prior to initiating repayment. The funds are intended to facilitate the acquisition of essential inputs such as fertilizers, livestock, veterinary drugs, and other critical resources.

Mr. Baba further noted that the programme is situated under the Federal Ministry of Humanitarian Affairs and Poverty Alleviation, representing one of the flagship initiatives of the National Social Investment Programme.

According to Mr. Baba, GEEP provides collateral-free, interest-free loans to micro-enterprises, petty traders, artisans, youth entrepreneurs, and farmers to assist in scaling their businesses and promoting financial inclusion.

He elaborated that GEEP operates three distinct schemes: TraderMoni, which targets youths aged 18 to 45 engaged in petty trades; MarketMoni, focused on women in small-scale trading; and FarmerMoni, which is geared towards rural farmers.

“It is crucial to emphasize that these are loans, not grants; however, they are interest-free,” he stated.

The objective is to assist Nigerians at the lowest economic levels in enhancing their businesses, integrating them into the formal financial system, and ultimately creating employment opportunities.

Mr. Baba indicated that the loan amounts vary from N5,000 to N100,000, depending on the respective scheme, and are structured to promote sustainability through ongoing monitoring and evaluation processes.

He encouraged traders’ associations and cooperatives to collaborate closely with GEEP Desk Officers and field enumerators across all 774 local government areas of Nigeria to ensure that only deserving beneficiaries are selected.

“The success of this programme relies on transparency and precise targeting. We aim to reach individuals who genuinely require support, rather than those attempting to exploit the system,” he added.

Mr. Baba assured that the Tinubu administration is committed to expanding the reach of all GEEP schemes and emphasized that the pilot farmer intervention will provide a basis for a broader rollout anticipated in 2026.

He recognized the significant contributions of previous administrations and Ministers to the development of GEEP since its inception in 2016 and commended ongoing reforms aimed at enhancing delivery and accountability.

Mr. Baba noted, “GEEP also collaborates with other components of the National Social Investment Programme, including the National Home-Grown School Feeding Programme, Conditional Cash Transfer, and Grants for Vulnerable Groups. These initiatives collectively aim to alleviate poverty and improve the livelihoods across Nigeria.”

In a subsequent interview, one beneficiary, Hauwa Musa, expressed gratitude to the Federal Government for the initiative, stating that the support has significantly improved her life and expanded her business operations.

Another respondent, Mallam Umar Usman, expressed his hopes of being included in the forthcoming GEEP 3.0 phase, which is expected to commence soon, despite not having yet benefited from the programme.

The News Agency of Nigeria has reported that market leaders and stakeholders also commended the Federal Government for its support of business owners through interest-free loans. They assured their commitment to collaborating closely with the GEEP Desk Officers to facilitate equitable distribution and ensure that assistance reaches those in genuine need.