The Coalition of Microlending and Cooperative Institutions in Nigeria (COMCIN) has launched a N100m joint loan facility aimed at improving access to finance for small and informal businesses, marking a deliberate shift towards grassroots-driven financial inclusion.
The initiative, developed in partnership with NEAT Microcredit, is structured to bypass the rigid requirements of traditional commercial banking, which have long excluded a large segment of Nigeria’s informal economy. By leveraging a network of micro-lending and cooperative institutions, the scheme is designed to deliver funding directly to entrepreneurs who typically lack collateral or formal credit history.
The facility is specifically targeted at traders, artisans, and service providers operating within the informal sector. These groups, often described as the backbone of local economies, have historically struggled to access affordable credit due to stringent lending conditions imposed by larger financial institutions.
According to the Executive Director of COMCIN, Mr Micheal Ogbaa, who spoke on behalf of the Chairman, Dr Iredele Oyedele, the coalition’s advantage lies in its close connection to underserved communities.
“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.
Funds are being disbursed through participating Microfinance Institutions, ensuring that the N100m reaches entrepreneurs at the base of the economic pyramid. This decentralised model not only improves access but also strengthens trust, as local institutions are better equipped to assess credibility and monitor repayment.
A key feature of the programme is its strong focus on women, who make up about 90 per cent of the expected beneficiaries. COMCIN identifies women as critical drivers of household stability and local commerce, making their financial empowerment central to broader economic growth.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” Ogbaa added.
Eligible small businesses with proven integrity and track records can access loans of up to N5m under the scheme, which offers relatively low interest rates and flexible repayment structures tailored to informal income patterns.
The rollout has begun in Lagos, with expansion already underway in Abuja and Enugu, while additional regions across the South-West, South-East, and North-East are being considered. So far, twelve micro-lending institutions have accessed the facility, with 85 more applications currently 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,” Ogbaa noted.
