The Nation Newspaper

Tag: Micro Small and Medium Enterprises

  • ‘Fed Govt’s N200b intervention fund a lifeline for MSMEs’

    ‘Fed Govt’s N200b intervention fund a lifeline for MSMEs’

    The Minister of State for Industry, Trade and Investment, Sen. John Owan-Enoh, has described the N200 billion intervention fund for Micro Small and Medium Enterprises (MSME) as a financing pipeline for businesses.

    Owan-Enoh stated this at a town hall meeting on the presidential grant and loan scheme for MSMES in Calabar yesterday.

    The minister who described the scheme as a financing pipeline for businesses, stated that the fund had ‘democratised financing for overlooked businesses’

    He said the town hall meeting was to sensitise the business community in Cross River to take advantage of the opportunities provided by the intervention fund.

    Read Also: CBEX: Why Nigerians will always fall for Ponzi schemes

    “This gathering is not just to offer capital, it is to build confidence, ignite the spirit of enterprise and restore dignity in honest work,” he said.

    Owan-Enoh said that medium and small scale enterprises were the engine room of economic growth in any nation.

    He expressed concerns that MSMES were challenged by non-access to funds, high interest rates, institutional exclusions among others.

    “The future of Nigeria does not lie in the oil sector alone, medium and small scale businesses have critical roles to play.

    “This category of businesses hold the key to Nigeria’s economic and industrial prosperity.

     The current administration is determined to tap into the benefits of MSMEs,” he said.

    Also speaking, the Special Adviser to the President on Job Creation and MSMEs, Mr Temitola Johnson, said the intervention fund was part of the president’s post subsidy removal palliatives.

    He said that MSME operators could utilise the opportunity to raise up to N5 million to boost their businesses.

    “MSME operators can take advantage of this window to get as much as N5 million naira with a nine per cent interest rate,” he said.

    The Managing Director, Bank of Industries (BoI), Dr Olasupo Olusi, said that the scheme was an investment in Nigeria’s future, aimed at fostering inclusive growth and economic development.

    Olusi said that MSMEs accounted for 96 per cent of businesses in Nigeria, 84 per cent of employment, and nearly half of the nation’s Gross Domestic Product.

    The managing director stated that so far, the bank had disbursed over N107 billion to about 900,000 MSMEs across the six geopolitical zones.

    Also speaking, Gov. Bassey Otu, commended the Federal Government for the initiative, and described it as a good omen to medium and small scale businesses.

    Represented by the Commissioner for Wealth Creation, Mr Patrick Egbede, Otu said 2,000, out of the 8,168 registered small scale businesses in the state had benefitted from the grant.

  • CAC registers 3,098,193 companies in 28 years

    The Corporate Affairs Commission (CAC) on Tuesday said it had registered 3,098,193 companies and firms in Part A, B and C categories from its inception in 1990 to March 21.

    The Acting Registrar General of CAC, Mrs Azinge Azuka disclosed this at the commission customers forum in Abuja.

    Azuka said that in the last three years, the statistics on registration of firms and companies under Parts Limited Liability Company (A), Business Name (B) and Incorporated Trustee (C) was 618,309.

    She explained that in 2016, the council got the sum of 175,098 from the LLC (A), 193,194 from Business name (B) in 2017 and  252,035 from Incorporated Trustee (C) in 2018.

    Azuka said the number of Annual Returns filed under the Parts A,B and C in the last three years was 190,078.

    According to her, the major thrust in the present administration is to revamp the Nigerian economy though the support of Micro Small and Medium Enterprises (MSMEs).

    Read also: New CAC for Apapa port

    She said the commission remained resolute in reviewing its processes regularly, in a bid to improve service delivery.

    “In that regard, work is at advanced stage to amend it enabling law, the Companies and Allied Matters Act (CAMA) in collaboration with the National Assembly.

    “This seeks to ease starting and growing businesses in Nigeria, ensure more appropriate regulation for MSMEs.

    “Enhance transparency and shareholders engagement align regulate framework with International best practices and make Nigeria an investment destination of choice,” she said.

    CAC was established by the Company and Allied Matters Act, which was promulgated in 1990 to regulate the formation and management of companies in Nigeria. (NAN)

  • SME Business Account

    The Central Bank of Nigeria (CBN), in recognition of the significant contributions of the Micro, Small and Medium Enterprises (MSME) sub-sector to the economy, launched the Micro, Small and Medium Enterprises Development Fund (MSMEDF) on August 19, 2014.

    This is a value proposition designed to address business needs as a Micro, Small and Medium scale Enterprise (MSME). The account aims to help MSMEs grow their businesses.

    The proposition is categorised into three different groups:

    Heritage MSME Business classic with a maximum annual debit transaction of ¦ 50m

    Heritage MSME Business pro with a maximum annual debit transaction of ¦ 100m

    Heritage MSME Business premium with a maximum annual debit transaction of ¦ 250m

    MSME-business thumbnail image-B

    Account opening amount and minimum balance for each Heritage MSME Business category is as follows:

    Heritage MSME Business classic – ¦ 25,000

    Heritage MSME Business pro – ¦ 50,000

    Heritage MSME Business premium – ¦ 100,000

    FEATURES & BENEFITS

    • A current account with Zero COT.
    • Overdraft facility is 25% of the 6 months average monthly turnover and limited to the Heritage MSME Business category amount.
    • Higher credit such as LPO financing, term loans e.t.c are available but will have to pass through applicable credit process.
    • Easy access to Free POS terminal.
    • Easy access to (collateral free) loan.
    • Advisory services.
    • Access to credit life assurance protection against the borrowed funds.
    • Low transactional cost: – i.e. Zero COT.
    • Easy access to collateral free overdraft (which is a % of your 6 months average turnover).
    • Easy access to other higher credit facilities giving you the opportunity to acquire assets for the business & so on.
    • Free deployment of Point of Sale Terminal which reduces cost of handling cash and convenience of cashless trading.
    • Access to advisory service from appointed consultants, which will help you develop competitive edge business skill.
    • Credit life assurance cover on borrowed funds in case of default via death or physical disability
    • Regular networking events

    As one of the Participating Financial Institutions (PFIs), we have identified opportunities for Heritage Bank customers on this Fund.

    REQUIRED DOCUMENTS

    Application Letter – stating clearly Business Sector, Requested Amount and Tenor, Asset, last year turnover (if any)

    Board Resolution

    Heritage Bank Account

    Viable Business Plan with Cashflow Projection

    Letter of Authority to debit for CRMS Check

    Certificate of Incorporation or Registration & MEMART (as appropriate)

    Borrowers Contact – Business & Directors’ Addresses & Telephone numbers

    Collateral acceptable to Heritage Bank

    TARGET SECTORS

    Manufacturing

    Agricultural value chain activities

    Educational institutions

    Renewable energy/energy efficient product and technologies

    Any other income generating enterprise as may be prescribed by the CBN

    SME Loans and Credit Home   SME Loans and Credit

    Obligor Limit: N20, 000,000 (Twenty Million Naira)

    Product Description: Finances shortfall in working capital for traders and manufacturers.

    Criteria

    Achieved monthly credit turnover of 150%

    Achieve 200% after disbursement

    Account to swing to credit in the review cycle.

    Collateral FSV cover should be 150% (130% for cash or money market instrument).

    Tenor

    1 year with 90 days cycle for Traders

    1 year with 120 days cycle for manufacturers

    Facilities will be reviewed within 90 days or 120 days to ensure:

    Turnover covenant is met

    Account swings to credit at least once within approved cycle

    Pricing

    Interest Rate: 25%-27% p.a.

    Commitment Fee: 1% flat

    Management Fee: 1% flat

    Security

    Legal Mortgage with FSV of 150% collateral coverage of the facility amount, OR

    Money market instruments with 130% cover.

    Personal guarantee

    Undertaking to domicile daily sales proceeds

    Undated cheque with 150% cover.

    Stock hypothecation and trust receipts.

    Source: Heritage Bank

  • Minister hails firm’s off-grid power solution for MSMEs

    Minister of State for Industry, Trade and Investment Hajiya Aisha Abubakar has praised Tellco Europe Nigeria for its support for Micro, Small and Medium Enterprises (MSMEs) through clean energy.

    Speaking at the launch of a Swiss technology known as TellcoSol, an off-grid solar power solution introduced by the firm, she said MSMEs were critical to the economy and contribute 48.47 per cent to the GDP and 7.27 per cent to exports.

    Abubakar, represented by a top ministry official, Dr. Francis Alami, said there was the need to address the power supply deficit, noting that with TellcoSol, the challenge of affordable energy for small businesses would be reduced.

    “I heartily commend Tellco Europe and SolarLed Solutions for the efforts they have made in trying to provide clean energy for MSMEs in the country. This is in tandem with the sustainable development goals (SDG) considered as a pathway towards sustainable economic growth,” she said.

    The product, launched in Lagos, includes the 1200 watts TellcoSol model known as Lugano, which comes with a three-year warranty, two-year insurance, and can provide solar-powered electricity for over 24 hours daily, with fixed options of two AC standing fans, a 32-inch television and a refrigerator.

    According to the minister of state, the Federal Government has improved the regulatory environment, eased access to finance, and provided business support and market access in a bid to help business thrive and boost the economy.

    She said the government has introduced the nationwide MSME clinics and launched the economic and recovery and growth plan, adding that ministries, departments and agencies (MDAs) are expected to have at least 40 per cent local content in their procurement.

    “We believe that supporting small businesses by promoting green energy for MSMEs is essential for increasing productivity, creating jobs and boosting our economy by mitigating the effect of climate change and epileptic power supply in the country.

    “The Federal Government is committed to diversifying the economy and creating a favourable climate for both local and foreign investors. I urge spirited private sector organisations to partner with government in ensuring that our dear country actualises the economic growth we all hope for,” the minister of state said.

    Co-Founder of TellcoSol Switzerland said there was room for a pay-as-you-go installment option for the units.

    “We have the required tools to give you 24hour power. Our systems include solar panels, refrigerator, TVS, light bulbs, etc. Our TellCoSol systems are competitively priced compared to our competitors and is pocket friendly.

    “Tellco is a trusted name in renewable and sustainable technology and we offer maintenance free batteries for solar applications,” he said.

  • Diamond Bank supports women in MSMEs

    Diamond Bank Plc, has lent its support to make women succeed in Micro Small and Medium Enterprises, (MSMEs).

    Head Regional Business, Northern Directorate, Sufiyanu Garba who disclosed this in Abuja, said the bank is in full support of women in Micro Small and Medium Enterprises, (MSMEs) and has introduced a lot of iniative for women in that area.

    Sufiyanu Garba disclosed this during the Diamond Bank first customer workshop in Abuja, where he stated that “the bank is in full partnership with women to ensure they succeed in their businesses.”

    According to him, “Diamond bank is a retail bank that has strong support for MSMEs. our customers are very important to us and we always want to support them. In Diamond we have different programmes each month and at different locations, this is among our programmes for the year.”

    He also revealed that “Diamond bank gives out loans for starters, what we do is prepare people to receive this loans, we teach them business principles and how to use their money for business, at the end of the day, they make the business bankable and we position and educate them on how to use this loans.”

    Garba urged women MSME operators with bankable businesses to “can come to us, the bank has been giving a lot of loans to MSMEs, and we are willing to do more. If a new customer under Diamond Bank wants loans, all you need to do is maintain an account with the bank for three months, as long as the customer knows its not a grant but a loan and payable at the due time.”

    He lamented that, challenges facing loan collection in Nigeria “is enormous, among them is unregistered businesses that want loans at all cost, in that case we take the pains of registering the company for the client.”

    Also speaking at the event, a business woman, Ijeoma Ndukwe who has grown her business into million naira worth advised other businesswomen to work on their success, remain with the strategy for your success. always know that there are business challenges to deal with, if this does not happen your business is dead. There is no business without challenges. Diamond Bank can only support your works in business not give you ideas on how to create a business.”

  • Bol lifts 149 MSMEs in Oyo

    One hundred and forty-nine companies have benefited from a N1 billion loan scheme financed by the Oyo State Government and Bank of Industry (BoI) for Micro Small and Medium Enterprises (MSMEs).

    The state Bureau of Investment Promotion (BIP) Executive Secretary, Mr Yinka Fatoki, stated this at the screening of 45 new applicants. The scheme, instituted in 2012, has both parties contributing N500 million each.

    Fatoki said under the deal, an applicant was entitled to N10 million.

    He said the objective of the scheme is to provide MSMEs with medium-term facility of three years at five per cent interest rate.

    ‘‘Today’s meeting is a routine one; this meeting is basically to screen another 45 applicants. We have recorded 149 beneficiary companies since 2012,’’ he said.

    He urged residents to make good use of the opportunity, saying the government had released another N500 million to support businesses.

    The state BoI Officer, Mr Pacquuens Irabor, recalled that the business relationship between the bank and the state government started in 2012.

    ‘‘We signed a Memorandum of Understanding (MoU) of a partnership with the Oyo State Government to the tune of N1 billion. It is matching fund relationship whereby each party provides N500 million. This programme is essentially for manufacturers, processors, the small and medium enterprises located in the state. They are supposed to benefit from access to long term funding and over the years we have seen many MSMEs who have taken the fund, using it to grow their businesses,’’ he said.

    He said the loan was given out to the beneficiaries at a five per cent interest rate, the lowest interest rate in the country.

    According to him, ‘‘beneficiaries cut across those that are into value addition processes in agriculture, manufacturing, block molding and other processes that add value to raw materials.

    ‘‘The governor has put this one billion naira in place to assist them to start up and expand’’, stressing that this was one of the economic trees Governor Abiola Ajimobi planted.

    Irabor said  the economic tree had, since 2012, been producing financial fruits for MSMEs yearly.