COMCIN N100m Microloan for Nigerian Women in Informal Sector

A coalition of microfinance and cooperative institutions in Nigeria has launched a N100 million joint loan facility aimed at addressing the financing gap for small and medium-sized enterprises (SMEs) in the country’s informal sector. The initiative, spearheaded by the Coalition of Microfinance and Cooperative Institutions in Nigeria (COMCIN) in partnership with NEAT Microcredit, will distribute funds through a network of member micro-lending institutions to reach entrepreneurs often excluded by commercial banks.

The facility specifically targets micro-entrepreneurs who lack traditional collateral, a common barrier in Nigeria’s formal banking system. By channeling capital through grassroots lenders, COMCIN intends to deliver financing directly to the base of the economic pyramid. Mr. Michael Ogbaa, Executive Director of COMCIN, stated that the coalition’s strength lies in its local presence. “Commercial banks often exclude people at the grassroots, but our members are positioned to reach them,” he said, speaking on behalf of COMCIN Chairman, Dr. Iredele Oyedele.

A key feature of the scheme is its demographic focus, with approximately 90 percent of projected beneficiaries being women. COMCIN identifies women as primary drivers of family stability and local commerce. The plan targets traders, service providers, and other informal sector players, offering low interest rates and flexible repayment terms. Eligible SMEs with proven business records can access loans of up to N5 million each.

The pilot phase has commenced in Lagos State and is expanding to Abuja and Enugu, with plans for broader regional coverage across the South-West, South-East, and North-East zones. To date, twelve micro-lending institutions have received capital allocations, with 85 additional applications under review.

COMCIN frames the N100 million as an initial investment toward a larger vision. “Our target is to reach at least 100,000 SMEs nationwide,” Ogbaa noted, explaining that the coalition is building a platform to connect international development finance institutions and private investors with credible micro-lending partners. Success in the transparent and efficient management of the pilot phase is intended to attract larger funding pools.

The rollout reflects ongoing efforts to enhance financial inclusion in Nigeria, where micro, small, and medium enterprises contribute significantly to GDP but often struggle with access to credit. By leveraging an existing network of microfinance institutions, the initiative aims to provide a scalable model for channeling capital to underserved entrepreneurs.