ARM Investment Managers has launched a N200 billion Private Debt Fund, seeking to alleviate the significant financing challenges faced by Small and Medium Enterprises (SMEs) in Nigeria. The fund is designed to provide SMEs with access to long-term credit at interest rates lower than current market rates.

The initiative comes as many SMEs struggle to secure funding from traditional banking institutions due to high interest rates and stringent collateral requirements. This often hinders their ability to grow, expand operations, and contribute effectively to the Nigerian economy. The ARM Private Debt Fund aims to bridge this gap by offering more accessible and affordable financing options.

By providing credit at more favorable terms, ARM hopes to empower SMEs to invest in their businesses, create jobs, and boost overall economic activity. The fund will focus on providing longer-term financing solutions, allowing businesses to plan and execute long-term growth strategies without the pressure of short-term repayment cycles.

The N200 billion fund is expected to have a considerable impact on the SME sector, fostering innovation and driving economic diversification. This development follows increased government and private sector focus on supporting SMEs as key drivers of economic growth and job creation in Nigeria.

Market watchers believe that this initiative by ARM Investment Managers could set a precedent for other investment firms, encouraging the development of more innovative financing solutions tailored to the specific needs of Nigerian SMEs. The success of this program could pave the way for increased investment and growth in the SME sector, contributing to a more robust and diversified Nigerian economy.