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  • Council, agency to close N3tr MSME fund gap

    Council, agency to close N3tr MSME fund gap

    British Council, in collaboration with Small and Medium Enterprises Development Agency of Nigeria, and support from Investment Climate Reform (ICR) facility, has launched Impact Advisory Group (IAG) to strengthen access to finance for MSMEs and bridge the N3 trillion funding gap hindering their growth in Nigeria.

    This was unveiled at the National Roundtable on MSME Financing: “Sustaining Impact: Achieving N3 Trillion Inclusive Financing Options for MSMEs in Nigeria,” in Lagos.

    It brought together government representatives, development partners, financial institutions, and private sector leaders to chart coordinated strategies for inclusive MSME financing and policy reforms.

    Country Director of British Council, Donna McGowan, said the partnership reflects the council’s commitment to deepening Nigeria’s reform ecosystem and promoting inclusive economic growth.

    “As ICR programme winds down, sustaining outcomes are a priority,” McGowan said. “IAG is a platform to sustain business environment reforms, promote access to finance for women-owned businesses, and establish mechanisms for accountability and coordination among stakeholders.”

    Convener of IAG and Chief Executive of Octovio Development, Nelson Okwonna, said the group was set up to harmonise efforts of government, private sector, and donor actors in the MSME ecosystem.

    “We realised interventions for MSMEs operate in silos.“The IAG seeks to connect those efforts, close the funding gap, and ensure impact is scaled beyond donor cycles.”

    Representing SMEDAN’s chief, a director, Dabureje Onesi-Lawani, stressed the agency’s resolve to improving MSME competitiveness through data-driven policy and public-private collaboration.

    He said: “SMEDAN has benefited from ICR facility in initiatives as National MSME Policy (2021–2025) and studies on women’s access to finance, but sustaining the impact requires a platform like IAG.

    “The collective effort that begins today is aimed at closing the N3 trillion funding gap, and every stakeholder must be part of that process.”

    National Escrow Member of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Chief Kola Akosile, emphasized the private sector’s role in formalizing and supporting MSMEs.

    “MSMEs make up the backbone of our economy but remain grossly underfunded,” he said. “At NACCIMA, we are collaborating with SMEDAN and the CAC to onboard one million MSMEs into the formal sector within a year, offering free chamber memberships to support growth and accountability.”

    Similarly, Mr. Iliya Anthony, Managing Director of the Kaduna State Enterprise Development Agency, shared insights from the Kaduna model, where the government has disbursed over ₦3 billion to small businesses.

    “Kaduna is leading by example,” Anthony said. “We believe access to finance, markets, and training must go hand in hand. Another ₦1 billion will be rolled out next month to support more SMEs and promote financial inclusion for women in rural areas.”

    A key highlight of the event was the signing of a Memorandum of Understanding (MoU) between SMEDAN and IAG’s implementing partners, EFInA, FATE Foundation, Sterling One Foundation, Africa Venture Philanthropy Alliance (AVPA), Impact Investors Foundation (IIF), and Octovio Development Company, to sustain and scale inclusive financing reforms nationwide.

    Read Also: Tinubu’s fiscal revolution rebuilding Nigeria, says APC

    During the roundtable, Okwonna delivered a lead presentation titled “Achieving ₦3 Trillion Inclusive Financing for MSMEs in Nigeria,” describing what he called the “MSME financing paradox.”

    “Private sector loans have grown to ₦77 trillion, yet less than two percent reaches MSMEs,” he said. “Only about 25.9 percent of women entrepreneurs have accessed formal financing despite MSMEs contributing 46 percent to GDP and 87.9 percent to employment.”

    Participants later engaged in breakout sessions on Asset Financing, Trade Finance, Agricultural Finance, and Start-up Equity Financing. Recommendations included creating state-level matching funds and de-risking instruments for MSMEs, promoting blended finance, expanding equity and impact investment, and strengthening digital trade finance infrastructure.

    In his closing remarks, Director of Programmes at the British Council, Mr. Chikodi Onyemerela, praised the collaboration between government and private partners.

    “This launch represents more than an event it is a movement toward sustainable MSME growth, we must continue this collective effort beyond donor cycles to ensure financing reforms reach every level of Nigeria’s economy”, Onyemerela said.

  • BoI opens application portal for FG’s N75bn MSME Fund

    BoI opens application portal for FG’s N75bn MSME Fund

    The Bank of Industry (BoI) on Monday announced the opening of its application portal for would-be beneficiaries the Federal Government’s N75billion Micro, Small, and Medium Enterprises (MSMEs) Intervention Fund.

    The Nigerian Association of Small Scale Industrialists (NASSI) lauded the FG for the intervention programme, describing it as lifeline for Nigerian MSMEs.

    A representative of the BoI, Amina Habu Mohammed disclosed the commencement of the application process during a press conference on a Memorandum of Understanding (MoU) between NASSI and Bank of Industry and sensitization on N75billion MSME Intervention Fund in Abuja.

    Amina said the fund targets 75million SMSEs at N1million each at nine per cent interest  rate for a period of three years without collateral.

    He said the flexible loan aims to boost SMSEs in the country and improve the conditions of living of the people and that the application portal can be accessed at https://fgnboimsmeinterventionloan.boi.ng/

    The National President of NASSI, Dr Solomon Vongfa, in his remarks, described the N75billion as a beacon of hope for countless MSMEs that have been struggling to access affordable credit.

    Vongfa said: “I stand before you today to express our profound gratitude to the Federal Government of Nigeria for its visionary initiative to launch the N75billion MSME Intervention Fund.

    “This landmark program, in partnership with the Bank of Industry (BOI), is a testament to the government’s unwavering commitment to empowering Micro, Small, and Medium Enterprises (MSMEs) across the nation.

    “The N75billion MSME Intervention Fund is more than just a financial injection; it is a beacon of hope for countless MSMEs that have been struggling to access affordable credit.

    “This initiative will undoubtedly catalyze economic growth, create jobs, and foster innovation.”

    According to him, the fund offers loans at competitive interest rates, making it easier for MSMEs to secure the capital they need to expand their operations.

    He added that the application process has been streamlined to minimise bureaucratic hurdles and ensure timely disbursement of funds.

    Read Also: BOI: 145 manufacturers to receive N1billion at single-digit interest rate

    He said the fund would provide technical assistance and capacity-building programmes to help MSMEs improve their business practices and enhance their competitiveness.

    On the role of NASSI, Vongfa said: “As the Nigerian Association of Small-Scale Industrialists, we are committed to playing a pivotal role in sensitizing MSMEs about this groundbreaking initiative.

    “We will organize workshops, seminars, and outreach programmes to educate entrepreneurs about the eligibility criteria, application process, and benefits of the fund in partnership with BOI across the 36 states.”

    He added: “We urge all eligible MSMEs to seize this opportunity and apply for the N75billion MSME Intervention Fund.

    “This is a golden chance to unlock your business’s full potential and contribute to the economic prosperity of our nation.

    “The N75billion MSME Intervention Fund is a game-changer for Nigerian MSMEs.

    “By working together with the government and financial institutions, we can create a thriving entrepreneurial ecosystem that will drive sustainable economic growth.

    “We extend our heartfelt thanks to the Federal Government and the Bank of Industry for their tireless efforts in making this initiative a reality.”

  • CBN lists criteria for accessing N220b MSME fund

    CBN lists criteria for accessing N220b MSME fund

    To achieve strong and viable agricultural base, the Central Bank of Nigeria (CBN) has listed conditions for accessing the Anchor Borrowers credit from the N220billion Micro, Small and Medium Enterprises Development Fund (MSMEDF).

    The Anchor Borrowers credit is for farmers at nine percent per annum interest rate to address the challenge of poor funding they face.

    CBN Governor, Godwin Emefiele, stated thus during an interaction with rice farmers in Awka, Anambra State.

    He said the idea behind the Anchor Borrowers programme initiative was to diversify the economy by addressing the issue of local production of agricultural products that reduces the nation’s foreign reserve.

    Emefiele, who was represented by his Special Adviser on Development Finance, Paul Eluhaiwe, identified lack of mechanisation, low quality inputs and poor funding as major hindrances to rice production but stressed that the programme was aimed at solving the problem of finance.

    On the conditions for accessing the loan, the CBN boss said the farmers will be thoroughly trained on the global best agronomical practices.

    According to him: “The farmers must be members of a validated cooperative before applying for the loan.

    “We will find out how much it will take to produce one hectare of rice to determine the amount that will be given to each individual. The idea is to enhance efficient management of the resources.”

    The Managing Director of Ebonyi Agro Nigeria limited and the Major Off-Taker of the programme in Ebonyi, Enugu and Anambra State, Engr. Charlce Ugwu, lamented Nigeria consumes about six metric tons of rice yearly but produces only 3.5 metric tons at about $3 billion.

    He noted that the two paddy aggregation centres in Anambra State will be made more viable, promising that his group will buy all the rice produced in the state through the programme.

    He also enjoined farmers to utilise the opportunity offered by the programme to increase their yield.

    Governor Willie Obiano, represented by the Commissioner for Agriculture, Afam Mbanefo, thanked the CBN and the Offtaker for the initiative and called on the farmers in the value chain to ensure that they are revalidated.

  • ‘OPS yet to access N220b MSME fund’

    The Onitsha Chamber of Commerce has decried the inability of members of the Organised Private Sector (OPS) to access the Federal Government intervention fund for Micro, Small and Medium Enterprises (MSME). The President of the Chamber, Dr Tim Anosike, expressed this concern in an interview with reporters. “The OPS is still having difficulties in accessing the Federal Government’s N220b MSME fund,” he said.

    Dr. Anosike disclosed that the problems facing the sector included the complicated procedures in accessing the fund and lack of interest of many banks in the programmme. “The current N220 billion MSME intervention fund by the Central Bank of Nigeria (CBN) is a laudable initiative. This chamber believes that if the fund could be made available for the target groups, the national economy would received a significant boost at the end of the day.

    He said this is more, considering that 60 per cent of the fund goes to women entrepreneurs. He, however, expressed fears over the complicated

  • MSME Fund: Who really benefits?

    MSME Fund: Who really benefits?

    The president has launched the disbursement of the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF) initiated by the Central Bank of Nigeria (CBN). The question in the minds of most Nigerians is: how many Nigerians would benefit from this fund? Bukola Afolabi reports

    The Micro, Small and Medium Enterprises (MSME) Development Fund (MSMEDF) was initiated by the Central Bank of Nigeria, CBN. The disbursement of the fund was part of the CBN’s 8th annual MSME Finance Conference and Entrepreneurship Awards in Abuja.

    With the theme, ‘MSME Financing in Nigeria: Past, Present and Future,’ the annual event which attracted major stakeholders in the financial system promised to bridge the funding gap in MSME. Speaking at the occasion, President Goodluck Jonathan said that the federal government in order to complement the efforts of CBN would establish a wholesale Development Finance Institution (DFI) to provide long-term funds for industrial development. He said that the proposed institution was part of measures to enhance the contribution of MSMEs to the country’s economic growth and development.

    He said: “The DFI will provide long-term finance spanning up to 15 years for relevant entrepreneurs and industrialists, especially people involved in tree crop production. MSMEs are recognised all over the world as engine of growth in any development-oriented economy.”

    He reiterated that the contribution of MSMEs to Gross Domestic Product (GDP) globally averages about 47 per cent, and that shows clearly the importance of MSMEs to any economy. According to Jonathan, “from the report of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), there are about 17.3 million SMEs in Nigeria. However, this is quite small compared to countries like Indonesia that is slightly more than us in terms of population, but they have about 40 million.

    He added that as Africa’s largest economy with excellent prospects of becoming one of the world’s 20 largest economies by 2020, the challenges confronting MSMEs in the country must be addressed frontally. The president admitted that government was aware that besides limited access to finance, MSMEs in the country are also confronted by poor infrastructure, especially power, among other challenges. He, however, said that federal government was investing heavily on critical infrastructure such as electricity, road, among others, to promote job creation and inclusive growth.

    Out of the N220Billion MSME Fund, non-economic activities such as grants to Micro-Finance Banks (MFBs), training of MSME’s, research, monitoring and evaluation and capacity building will get N22billion, which is 10% of this fund. While 90%, which amounts to N198billion, will go for economic activities. Already, a Special Purpose Vehicle (SPV) consisting of the federal government and the Central Bank is slated to manage the fund. They will lend this fund to the Micro Finance Banks and Finance Houses at the rate of 9% and the Micro finance bank has a margin of 5% lending. The Central Bank of Nigeria recentlydisbursed N220billion to state governments for onward release to operators of Medium and Small Enterprises (MSMEs).

    The MSMEs Development Fund was distributed to the state governors on behalf of their states by President Jonathan. With a share of N500million, which was received by Delta State Governor, Emmanuel Uduaghan, and N260million for Akwa Ibom State, the two states topped the chart as the highest recipients.

    Also speaking at the occasion the Governor of CBN, Godwin Emefiele, said that the CBN initiated the MSMEs fund as an innovative way of improving their access to finance; shoring up their potential for job creation and enabling them reduce poverty within the country.

    According to him, “In view of the fact that cost and access to credit continue to be inhibiting factors to the survival and growth of many MSMEs in Nigeria, the CBN would be working with relevant stakeholders to encourage venture capital companies and business angels to fund MSMEs.”

    He also assured that the CBN would be committing considerable human, material and financial resources to monitoring both the disbursement and utilisation of the funds.

    Meanwhile, the Nigerian Association of Chambers of Commerce and Industry Mines and Agriculture (NACCIMA) has criticised the exclusion of notable umbrella bodies of the Organised Private Sector (OPS) as members of the CBN’s N220 Billion Micro Small & Medium Enterprises Development Fund (MSMEDF).

    In its state of the nation press briefing in Lagos, NACCIMA’s national president, Badaru Abubakar, counselled that the CBN should review the guidelines and include the OPS in the Steering Committee for effective administration and management of the fund, with a view to enhancing private sector collaboration with the apex bank, stressing that it would improve access to finance to genuine MSME operators in the country.

    However, the body commended the government for the recently constituted Presidential Advisory Council for the Fund, which includes seasoned businessmen from the  Organised Private Sector(OPS).

    “We believe that the technocrats from the public and private sectors will bring their expertise to bear in ensuring the effective delivery of the objectives of the fund as desired in the overall interest of the economy,” he said.

    Also, the stakeholders said the disbursement process would be marred if it was done through state-controlled micro finance institutions as presently arranged.

    Mr Philemon Akusu, an industrialist, said, “Such development would be surely inimical to the process of fast tracking the industrialisation of the country going by the attitudes of state-controlled institutions.”

    According to him, “Micro-finance institutions across the states were the creation of state governments to misappropriate funds.”

    The CBN did agree to engage micro-finance banks (MFBs) with good track records and strong financial base for the disbursement of the funds.

    It said Participating Financial Institutions (PFIs) included non-governmental organisations (NGOs) and micro-finance institutions, which would be able to access funding at an interest rate of nine per cent per annum.

    According to stakeholders, the funds would be lent to other entities with a spread of up to six percentage points per annum.

    The scheme is expected to provide liquidity to PFIs on a maximum three-year tenure, with most institutions limited to N5 million or N10 million.

    It, however, added that national micro finance institutions would be able to access up to N1 billion.

    Mr Praise Emeka, Chief Executive Officer of Praz Finance Nig. Ltd, said most intervention funds of the government that followed this module had failed.

    Emeka explained that the CBN must learn to trust other arms of government saddled with the responsibility to carry out such tasks.

    “You are witnesses to the lack of corporate governance and transparency in the country’s finance sector.”

    The economic question to be asked is: Would the goal of this fund be achieved given our current economic atmosphere? We will answer this question from two perspectives viz; Rate of lending and output prospects. The government has celebrated a single digit fund to the SMEs and MSMEs, but this has not been achieved before and it’s clear that this might not be achieved in the nearest future.

    Analysts posit that a single digit interest rate is pertinent for the survival of MSMEs.

    Secondly, the output prospects of our GDP have exhibited that the services sector is structurally positioned to transform the economy, going by its 53% contribution to the GDP growth in the last rebasing.

    At the recent inauguration of the National Council on Micro, Small and Medium Enterprises (MSME), President Jonathan directed that the N220 billion Fund being provided by the CBN be easily accessible by qualified MSMEs.

    To realise this, the president stressed the need to develop a detailed Financing Value Chain Intervention strategy for MSMEs.

    According to him, “Our commitment is to meet the aspirations of our people and in doing so, ensuring rapid economic development, benefitting all our citizens, North, South, East, or West.

    “Our focus will remain to build an economy that works for all Nigerians, and the MSME Council we inaugurate today is essential to achieving this goal.

    “The growth of MSMEs is one that is very important in any nation that aspires towards self-sufficiency. MSMEs are the innovators, the wealth creators, as well as employment generators. Every MSME today has the potential of growing to the large corporation of tomorrow, and that is why we are now backing the initiative with the creation of this Council.

    “The N220 billion MSME fund provided by the Central Bank, which I launched a few weeks ago for small businesses, will begin to address access to finance for small businesses, and Nigeria Enterprise Development Programme (NEDEP) will play a role in ensuring that MSMEs in the country are bankable and viable enough to access these funds, as well as other MSME funds available.

    “An urgent priority I expect this Council to take up, is the development of a detailed Financing Value Chain Intervention strategy for MSMEs, so as to address the difficulties put in the way of small businesses in their strive to access finance,” the president said.

    President Jonathan again reassured that all the 774 local government areas in the country would be covered as the MSMEs have become a central part of national policy.

    He spoke further: “This coordination will extend to the state level, for which State MSME Councils have already been instituted in 10 states, and it is my hope that MSME structures will become operational in all 36 States and the FCT before long.

    “These councils are chaired by the state governors and will directly report to the National Council.

    “We have successfully taken the federal government’s support for MSMEs to all Nigerians by decentralising Small and Medium Scale Enterprises Development Agency of Nigeria (SMEDAN) from only 13 States, to all 36 States of Nigeria and FCT in just five months.

    “We have also identified, and are supporting at least one product in all 774 local governments in Nigeria based on each local government’s areas of competitive and comparative advantage.

     “This Council shall have the mandate to develop, support, and grow small businesses in Nigeria. To underline the importance of this Council, I have asked the vice president to chair the council, because of its strategic importance on small business development and the economy of the country at large.

     “A National Technical Implementation Committee will be chaired by the Honourable Minister of Industry, Trade and Investment to serve the National Council on MSMEs and fast-track the implementation of its mandate.

    “If each of these businesses employs one more person, we would create over 17 million extra jobs, which would indeed be a revolution in Nigeria’s job markets. This is the unexplored power of small businesses.”

    He lauded the Council members for heeding the call to national service and urged them to expand the frontiers of their thoughts and ideas in order to succeed on the assignment.

    Speaking, Vice President Namadi Sambo, who heads the Council, noted that Small and Medium Enterprises (SMEs) have been known all over the world to be the engine room for growth in any economy.

    However, he assured that the Council will not fail in the national assignment.

    Also speaking, the Minister of Trade and Investment, Olusegun Aganga, said that the inauguration of the Council is a game changer that will boost the Nigerian economy in the long run.

    According to him, “Three out of four people employed in this country are from this sector, but we have never, in the history of his country, treated the micro, small and medium enterprises as a sector.

    “As a result, they have had to grow on their own. A country where you have about 17 to 20 million SMEs, and only 8% of them have access to finance from recognised institutions, it means that the system has not supported them in anyway.

    “A country where you have SMEs and their cost of production is very high, there is no market access, no organisation, everyone does SME in one way or the other. That was the situation we had in the country.

    “This is a game changer, what we are doing today is saying, first of all, let’s get organised, which is about developing institutional framework to focus only on that sector, bringing together all federal and state government-related agencies and development institutions, to get her as members of that council to address the problems of SMEs, we put them into seven pillars, these are cross cutting measures.”

    On the Council are Benue State governor, Gabriel Suswam, representing the North Central; Ramalan Yero (Kaduna) North West, Ibrahim Dankwambo (Gombe) for North East, Ibikunle Amosun (Ogun) for South West, Theodore Orji (Abia) for South East and Sarieke Dickson (Bayelsa) for South South.

  • N220 billion MSME fund: Open letter CBN Governor

    SIR: I want to commend the Governor of Central Bank of Nigeria, (CBN) Godwin Emefiele, for the bold step he has taken to mastermind the proposed N220 billion loan to revive some moribund small scale enterprises and thereby creating employment opportunities for the unemployed in the country.

    According to the report, the N220 billion to be released shall constitute a first phase which shall be distributed to 10 states on pilot basis. Having examined the whole arrangement, there is a lacuna.

    There is no provision for clear-cut monitoring and evaluation of the loan after disbursement. And more importantly, since this intervention is to revive ailing medium scale businesses, the period of moratorium of between six and 12 months should be spelt out. So also, the duration of payment after moratorium should be indicated.

    Many Nigerians welcome this noble step and idea but the fear remains that it should not go the way the past government programmers went. The introduction and demise of some past government programmers such as Directorate of Food, Roads and Rural Infrastructure (DFRRI), Family Support Programme, People’s Bank of Nigeria (PBN), Urban Mass Transit Programme, River Basin Development Authority (RBDA) are still fresh in our memories.

    In order for this incoming programme to achieve its desired objective and for it not to die at birth, all hands must be on deck. Nigeria cannot afford to miss it again at this critical point. The country has just been categorized by the 2013 World Bank Report as one of the world’s five “extremely poor” countries.

    But in reaction to that report, President Good Luck Jonathan debunked the report. He was of the opinion that the nation’s major problem was that of redistribution of wealth. So, if people have access to soft loan, it is obvious that the situation will change for the better.

    As a concerned Nigerian with background information on how to put in place an enduring poverty alleviation programme in Nigeria, I want to put the record straight with the following suggestions before the CBN governor. I served as secretary, Poverty Alleviation Programme Development Committee (PAPDC) during the then Federal Military Government of Nigeria through the National Planning Commission and International Donor Agencies. The programme design lasted for almost five years and the committee later submitted the blue print on poverty alleviation to the then Federal Military Government. The blue print was later incorporated into the country’s rolling plan.

    I therefore want to state that as a custodian of that information, I owe the country a duty to advise the Governor of CBN to revisit that blue print for the purpose of full implementation so that the issue of distribution of wealth canvassed by the President can be realized.

    The PAPDC then identified a number of constraints which militated against the effectiveness of the aforementioned past programmes. They include lack of targeting mechanism, policy instability, adequate coordination mechanism, inappropriate approach to programme design and of course, absence of sustainability mechanisms.

    If the loan is released based on the current arrangements, the powers-that-be in each state will convert the loan to party affairs. Only the loyalists to the government in power will benefit. On that note, the principle of lack of targeting mechanism will come to play. Consequently, the purpose of the loan will be defeated.

    The blue print under reference has provided for how such loan should be administered. The federal government will have to set up a board of poverty alleviation at the top, similar board at the state and local government levels. Details are contained in the blue print being referred to here.

    • Gabriel E. Ayimoro,

    Adekunle Ajasin University, 

    Akungba-Akoko, Ondo State.