CBN allocates N220b SMEs development

The Central bank of Nigeria (CBN) has earmarked about N220 billion as Micro Small and Medium Enterprises Development fund (MSMEDF) to boost business viability and economic prosperity in the country. Addressing a sensitisation workshop organised by the Central Bank of Nigeria (CBN) on Micro, Small and Medium Enterprises Development fund (MSMEDF) in Ilorin, the CBN governor Mallam Sanusi Lamido Sanusi who was represented by Ilorin Controller of the apex bank, Onoriode Monday Olotewo, said the bank's objective is to reach over 20 million MSMEs in over 10years period with 60 percent of women as the major beneficiary. He said the workshop was organised with the primary aim of sensitizing the kwara state government, the participating financial Institutions and the organised private sector on the funds. He explained that the fund has the broad objective of channeling long term-low interest funds to the small and medium business sector of the Nigerian economy through the participating financial institutions. He said the apex bank has developed operational guidelines for the state government’s participating in the MSME development fund in order to reach those at the grassroots. The CBN boss maintained that the MSME development fund two broad objectives of performing both social and commercial functions. He said the social /development fund shall constitute 10 per cent which is made up of grant five per cent, Interest drawback of three per cent and managing agents operational costs would remain at two per cent while the commercial fund shall constitute 90 per cent of the fund. Kwara State Governor, Alhaji Abdulfatah Ahmed commended the Central Bank for organising the workshop for the beneficiaries in the state. He urged the participants and beneficiaries to take advantage of the sensitization with a view to achieving the full benefit of the fund. He advised them to try hard and ensure they meet up with the guidelines to enable them benefit from the earmarked fund. In his presentation, “Titled The thrusts benefits and requirements for the N220 Billion naira Miro, Small and Medium enterprises development Fund” the guest lecturer, Daniel Inyang of the development finance department, CBN headquarters, said the essence of the fund is to help people finance their businesses. He however urged the potential beneficiaries to act in accordance with the law in accessing and repaying the loan as it is meant to develop the economy of the country.