Nigerian Government sets aside N220 billion for SMEs

States can access up to about N2billion from the fund.

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The Central Bank of Nigeria, CBN, says Micro, Small and Medium Enterprises MSMEs have the potentials to boost production, create jobs, reduce poverty and ensure inclusive economic growth and development in the country if adequately funded.

The CBN governor, Godwin Emefiele, said this at the signing of Memorandum of Understanding, MoU with the 36 State governments on “MSMEs Development Fund’’ in Abuja on Thursday.

Mr. Emefiele said that in spite of global recognition, MSMEs in Nigeria had not received adequate financing required to play their pivotal roles in national development.

He said a joint report by the International Financing Corporation, IFC, and McKinsey indicated that financing gap of the critical sector of the Nigerian economy was N9.6 trillion as at 2010.

The governor said the CBN initiated the funds as an innovative way of improving access to finances at single digit interest rates by MSMEs in order to unlock their potentials and unleash them for growth.

He said the state governments would be able to access up to N2 billion each for on-lending to eligible beneficiaries through participating financial institutions in their states.

The CBN, Mr. Emefiele assured, would ensure that the funds got to people at the bottom of the country’s economic and social pyramid at a maximum of nine per cent interest rate.

He also said 60 per cent of the funds would be given to women, who often turn out better yields than their men counterparts.
According to him, the CBN would be committing considerable human and material resources to monitoring the disbursement and utilisation of the funds in a robust and verifiable manner.

“Participating financial institutions will be required to submit periodic returns on disbursement as well as analysis of the social impact of these funds on our people’’, he said.

He implored the state governors to assist the CBN to achieve its goals by ensuring that the funds were deployed in an efficient manner to beneficiaries.

Akwa Ibom State governor, Godswill Akpabio, who spoke on behalf of the other governors, commended the CBN for initiating policies that bordered on poverty reduction in the country.

Mr. Akpabio, however, stated that the N220 billion set aside for the initiative was relatively small, considering the size of the country, the rate of unemployment and its economic potentials.

He urged the CBN to review the procedures involved in the disbursement of the fund to enable it get to the targeted population without difficulties.

Oyo State Governor, Abiola Ajimobi, on his part urged the CBN to carry out needs assessment of the states to establish their real needs, adding that the number of MSMEs varied from state to state.

Mr. Ajimobi said there was need to disburse the funds according to the size and needs of the MSMEs in various states of the federation.
For Emmanuel Uduaghan of Delta State, the funds should be channelled through the states owned microfinance banks to allow easy access by the people.

Mr. Uduaghan said if microfinance banks were encouraged to handle the funds, more jobs would be created at the grassroots and more people involved in economic activities at the local level.

Governor Rauf Aregbesola of Osun State said the best way to address the country’s economic challenges was by empowering the MSMEs and creating opportunities for the youths.

The governor stated that if about 50 million youths in the country were involved in economic activities, the country’s earning would be increased.

(NAN)


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  • Mahmoud Lawal

    Confused xenophobic corrupt writer, filled with ambivalence, hate and support for mediocrity.

    • Garden-City Boy

      Hear who is talking about xenophobia! Who is more xenophobic than you awusa ass-wipes? Nobody, not even Femi Fani-Kayode, is not compelling awusa junk to remain here. If anything, awusa should leave……it is something they have always wanted……something they push for with their militant Boko Haram jihadists. You forget that we all know that the spirit of ARABA is always in the awusa man’s psyche.

  • IdislikeBigots

    Essentially a one fat I told you so right? It’s very hard for me to take anyone seriously who happily States they support hezbollah and the Russians. Or one that likes to link to conspiracy, propaganda and other dodgy websites as fact. It’s also quite hard to listen to a certified tribalist. I read it, you make some fair points, but unfortunately shot yourself in the foot as you always do. How can you even compare America’s responses to that of Nigeria? How can I take you seriously when you state they maybe brutal dictators but at least they’re secularists? Really?

    Didn’t the late president yar’adua do more and try to tackle it head on? What has our current president done apart from wait for international coverage/pressure before action? Even then with lies. All the funds for security operations and personnel, where has that gone? Why are they ill-equipped? Where is our air force? Why so many conflicting reports?

    Honestly I feel bad for the citizens affected by BH and the soldiers who put their lives on the line. May God be with them because clearly your lot clearly have got nothing else to offer but delusions of grandeur. I hail thee FFK, celebrator of mediocrity and inept-ness. Master of the i told you so and it’s ok to be a dictator as long as you’re a secularist club.

    Every time I think I can’t lose anymore respect for you, you outdo yourself.

  • personality

    This guy always conflates himself. In his struggling attempt to defend Jonathan, he says America was slow in responding to ISIL. If I may ask: is ISIL in on the American soil? USA has not been slow to respond to ISIL for your information. It said that helping with ISIL in Iraq was conditional on Al maliki leaving and a broad based government formed because it is more of Sunni -Shiite age old feud. This happened about 2 weeks ago, hence US upping the game there. In any case what has Iraq’s problems got to do with America’s prompt response? Are you telling us America does not know everything about BH including how it can be defeated? Anybody who thinks that must be deluded. You are silent on Moudu Sheriff now. And when he was in APC you shouted hoarse that the party was hobnobbing with BH sponsors and in fact formed one of your reasons for your so called defecting back to PDP. This guy, FFK, is fake and should be talking to market women and not intellectuals. He is full of contradictions and opportunism. Do I blame him? No. I blame the highly compromised and incompetent media for not putting him in his right place. Reason he runs his mouth anyhow without logic thinking that he is the most eloquent one around because of the so called schooling in England. Rubbish.

  • Engr Jibrin Mohammed Maaji

    Don’t have time to read rubbish full of trash and hatred written by opportunist and metally derailed character!!!