The Federal Government of Nigeria is set to sign a landmark Memorandum of Understanding (MoU) with the United Nations Capital Development Fund (UNCDF) for the provision of interest-free loans and support for micro, small, and medium-sized enterprises (MSMEs).
The agreement was reached during the Fourth International Conference on Financing for Development (FFD4) in Seville, Spain. Nigeria’s delegation to the event was led by the Minister of Foreign Affairs, Ambassador Yusuf Tuggar, who met with UNCDF Executive Secretary, Mr. Pradeep Kurukulasuriya, to finalize discussions around the pact.
According to the Minister’s media aide, Alkasim Abdulkadir, both parties agreed in principle to deepen collaboration, with a shared focus on empowering Nigeria’s job creation efforts, entrepreneurial ecosystem, and the financial growth of SMEs—especially women and youth-led businesses.
“Both parties agreed in principle to sign a Memorandum of Understanding (MoU) aimed at providing interest-free loans and broader support for small businesses,” Abdulkadir confirmed in a statement made available to press in Abuja.
The partnership is expected to enhance the capacity of Nigerian development finance institutions such as the Bank of Industry (BoI) and the Bank of Agriculture (BoA), which have been pivotal to supporting MSMEs across the country.
The move aligns with President Bola Ahmed Tinubu’s broader economic strategy of improving access to capital and reducing poverty through financial inclusion and grassroots enterprise development. Ambassador Tuggar, delivering Nigeria’s national address at the conference on behalf of the President, emphasized the country’s commitment to building inclusive, sustainable economies driven by innovation, green finance, and youth participation.
At the sidelines of the conference, Tuggar also met with key stakeholders, including representatives from the Swedish government. He requested Sweden’s technical assistance in implementing Nigeria’s newly signed tax reform agenda and sought the country’s support for Nigeria’s bid for a non-permanent seat on the United Nations Security Council (2030–2031 term).
In addition to the UNCDF pact, Tuggar served as keynote speaker at the launch of the Green Guarantee Group (GGG) during the conference. He reiterated Nigeria’s growing focus on green finance as a driver of inclusive growth and long-term development.
“Nigeria is ready to lead on climate-resilient development through a mix of innovation, diplomacy, and international finance partnerships,” he said.
He added that the Tinubu administration is committed to leveraging international cooperation to scale sustainable investments, noting that proactive diplomacy remains central to Nigeria’s foreign economic policy.
The UNCDF, a UN agency dedicated to unlocking public and private finance for the poor, has increasingly played a vital role in facilitating access to concessional financing for least developed and low-income countries. Through this MoU, Nigeria stands to benefit from not just interest-free loans, but also advisory services, risk guarantees, and financial literacy tools that empower small business owners, particularly in rural and under-banked regions.
This collaboration is poised to address structural barriers that have long hindered MSME growth in Nigeria, such as limited access to credit, high-interest rates, and poor financial infrastructure.
Tuggar’s engagements in Seville reflect Nigeria’s renewed global posture under Tinubu’s leadership—centered on economic diplomacy, strategic alliances, and social inclusion. With the UNCDF agreement now in motion, the administration is reinforcing its commitment to economic reform, job creation, and the transformation of Nigeria’s SME sector.
The MoU signing is expected in the coming weeks, following technical consultations between Nigerian stakeholders and UNCDF teams. Once executed, the initiative will mark a significant milestone in Nigeria’s journey toward inclusive financial empowerment and sustainable development.