A new lending framework aimed at boosting access to credit for small and medium enterprises (SMEs) took effect this week, with participating commercial banks required to set aside a minimum percentage of their loan portfolios for qualifying businesses.

The framework, developed in consultation with banking associations, targets sectors such as agro-processing, light manufacturing, and retail trade that have historically struggled to secure affordable financing.

Economists say the move could unlock much-needed capital for entrepreneurs, though some warn that implementation and enforcement will determine its real-world impact.

“Policies like this only work if banks are held accountable for meeting their targets,” said one Lagos-based economic analyst. Small business owners have cautiously welcomed the news, calling for simplified application processes.