A N220 billion MSMEs fund that was re-launched last year by the Federal Government in Nigeria has just received a dose of better! With the recent development, it is now possible for Nigerians to get quicker and easier accessibility to it through their commercial banks. Aside that, priority would be given to people living with
A N220 billion MSMEs fund that was re-launched last year by the Federal Government in Nigeria has just received a dose of better! With the recent development, it is now possible for Nigerians to get quicker and easier accessibility to it through their commercial banks. Aside that, priority would be given to people living with disabilities, and about 60 per cent of the fund would be made available to women.
All this and more was made public after a meeting of the National Council on Micro, Small and Medium Enterprises (MSMEs) chaired by Vice President Namadi Sambo in Abuja on Tuesday. Also discussed at the meeting, is the matter of creating more awareness about the fund, which is domiciled in the Central Bank of Nigeria (CBN).
Minister of Industry, Trade and Investment, Dr Olusegun Aganga, announced that the council had taken a number of decisions affecting criteria for accessing the funds, following the report submitted by a committee that was chaired by the Minister of National Planning.
“The first is that access to collateral requirements which was initially 75 per cent which made it difficult for some commercial banks to be able to access has been reduced to 50 per cent,” Aganga stated.
“All inclusive interest rate must not exceed nine per cent. That has always been the operative of the CBN and we have stuck to that. However, the CBN is disbursing to these banks, financial institutions and others at two per cent from the original interest rate of three per cent.”
He noted that the council also deliberated on ways to make the fund sustainable across board for micro- finance institutions because micro-businesses at the grassroots constituted 99 percent of the total MSMEs sector and they require the most support of the Federal Government.
According to Aganga, “We also agreed that all government programs should be better coordinated. As a result, we are looking at all the funds available and we will be making information available to all Nigerians on the funds that are available and the guidelines on how each one of them can be accessed by the average Nigerian.”
Dear Entrepreneur, take advantage of this funding opportunity to expand your business! Approaching your local bank with the necessary requirements, which they will advise you on. A successful implementation of these noble plans would sure spell great progress for micro and small scale businesses.