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Tag: MSMEs

  • BoI, Taraba partner on N700m MSMEs Fund

    BoI, Taraba partner on N700m MSMEs Fund

    Taraba State government in partnership with Bank of Industry, (BoI), has signed a N700 million Memorandum of Understanding (MoU) for the establishment of micro, small and medium scale enterprises (MSMEs) Development Fund in the state.

    The business and development fund, for which the state government and the bank have contributed N350 million each, is meant for indigenous entrepreneurs engaged in, or willing to establish MSMEs in the state.

    The Governor, Darius Dickson Ishaku and the Managing Director of BoI, Mr. Rasheed Olaoluwa signed the deal in Abuja.

    He said the MoU would serve as a catalyst for industrialisation.

    “With the MoU just executed, it will serve as a catalyst to the industrialisation process of the state which this administration is committed to achieving, the Governor said.

    “The state government’s N350million contribution to the fund was released to BoI in April 2014, we are using this medium to appeal to the Bank to commence the process of disbursing the loan to the people of Taraba.

    “The loan would enhance capacity building of the people as well as reduce unemployment and poverty among them, we all know that the state is richly endowed with vast fertile land and other natural resources.

    “Majority of the people live in abject poverty due to lack of entrepreneurship and business development knowledge, if these resources are properly harnessed, the state could be poised for a promising future.

    “The partnership would lay the foundation that will bring about the take-off of the industrial development of the state by inculcating entrepreneurship culture among the people of Taraba State.”

    He added that it would also create employment opportunities to reduce over-dependence on government by encouraging them to be self-reliant and provide agro-based industries to take advantage of agricultural raw materials that abounds in the state.

    Olaoluwa said the MoU would foster the industrial development of the state and promote inclusive growth through job and wealth creation.

    He said Taraba was the second state in the Northeast  to partner BoI on its state’ matching fund scheme, noting that the state is renowned for its agrarian nature and rich alluvial soil which made it abundantly endowed in agricultural products as well as large untapped solid mineral deposits.

    He said: “In our quest to promote inclusive growth, BoI has embarked on the identification of thriving real sector SME clutches in all parts of the country.”

    He said  the strategy that would be adopted in the administration of the Matching Fund in the state is to finance projects in the identified agricultural and solid mineral clusters.

    These, Olaoluwa listed, to included the Mambilla Plateau for tea and coffee, Jalingo for rice, Wukari for cassava, Gebu for daity products, Sardauna for kaolin as well as Ibi for barylites.

  • FCMB disburses N122m to MSMEs

    First City Monument Bank (FCMB) Limited has disbursed  additional N122 million to Micro, Small and Medium Scale Enterprises (MSMEs). The amount is expected to grow in the coming months.

    In a statement, the bank listed some of the latest beneficiaries which include, Health Products and Farms Limited, Midows Limited in Lagos, Everlasting Hands Limited, in Kaduna State and God’s Will Technical Services Limited in Ogun State.

    The bank pledged support for the Central Bank of Nigeria (CBN) N220 billion MSMEs’ Development Fund meant to provide loans at lower interest rate of nine per cent and over a maximum period of five years to MSMEs’ operators.

    FCMB said its support is in line with its objective to contribute to the success of such businesses considering the key role they play in driving national economic growth and the well-being of the people, especially in the areas of employment and poverty eradication.

    According to the bank’s Group Head, Business Banking, George Ogbonnaya, the lender realises that SMEs play critical roles in the growth of the economy.

    As agents of growth, it is committed to helping these businesses thrive and contribute to the country.

    He added: ‘’We understand that a number of factors combine to determine the success or failure of SMEs. We will continue to support our customers operating in the SMEs segment to overcome the challenges they usually face, especially at the take-off stage. We want to be part of their success story.’’

    Ogbonnaya pointed out that with statistics showing that over 17million SMEs are registered in Nigeria and contribute to the country’s Gross Domestic Product (GDP), FCMB realises the strategic importance of this sector.

  • Govt unveils result of 2013 national survey on MSMEs

    Govt unveils result of 2013 national survey on MSMEs

    The Director-General,  Small and Medium Scale Enterprise of Nigeria,  (SMEDAN), Bature Umar Masari yesterday unveiled the result of the 2013 Micro, Small and Medium Enterprises Agencies (MSMEs).

    He said the National policy on MSMEs, is important considering the fact that all over the world, effective and successful developments have been driven by a robust policy framework and the availability of accurate data.

    Masari, said the policy on MSMEs and the results of the 2013 national MSME survey, will provide a veritable platform for the planning,  implementation,  monitoring and evaluation development programme within the MSMEs sub- sector in Nigeria.

    He said: “The first national policy was developed in 2007, the policy had been implemented for about seven years now and needed to be reviewed.  The aim of the review process was to ensure that the policy was updated to reflect unfolding economic and social imperatives affecting MSMEs in Nigeria.  It is also to ensure that the policy is aligned with international best practices in MSMES development.

    “The first ever national policy on MSMEs was developed by the agency in partnership with the African Institute of Applied Economic AIAE, the United Nation  Development Programme  (UNDP) and other relevant stakeholders.

    “I am pleased to inform you that after due consideration,  the reviewed national policy was approved by the Federal Executive Council (FEC) which is what is being presented to you today.

  • FCMB lifts MSMEs with N122m

    FCMB lifts MSMEs with N122m

    First City Monument Bank (FCMB) Limited reiterated its support for the growth of Micro, Small and Medium Scale Enterprises (MSMEs) in the country by disbursing additional funds worth N122 million. The fund is expected to grow in the coming months.

    In a statement, the bank listed some of the latest beneficiaries to include, Health Products and Farms Limited, Midows Limited (both based in Lagos); Everlasting Hands Limited, in Kaduna State and God’s Will Technical Services Limited, located in Ogun State.

    It also pledged support for the Central Bank of Nigeria (CBN) N220 billion MSMEs’ Development Fund meant to provide loans at lower interest rate of nine per cent and over a maximum period of five years to MSMEs’ operators.

    FCMB said its increased support to SMEs is in line with its value as a helpful bank and contributing to the success of such businesses considering the key role they play in driving national economic growth and the well-being of the people, especially in the areas of employment and poverty eradication.

    Its Group Head, Business Banking, George Ogbonnaya, said the lender realised that SMEs play critical roles in the growth of the nation’s economy.

    As agents of growth, it is committed to helping these businesses thrive and contribute to the development of the country.

    He said: ‘’We understand that a number of factors combine to determine the success or failure of SMEs. We will continue to support our customers operating in the SMEs segment to overcome the challenges they usually face, especially at the take-off stage. We want to be part of their success story.’

    Mr. Ogbonnaya pointed out that with statistics showing that over 17million SMEs are registered in Nigeria and contribute significantly to the country’s  Gross Domestic Product (GDP), FCMB realises the strategic importance of this sector.

  • ‘Revive MSMEs, address unemployment, others’

    The National Association of Small and Medium Enterprises (NASME) has urged the President-elect, Gen Muhammadu Buhari (rtd), to revive small-scale businesses.

    Its Executive Secretary, Mr Eke Ubiji said in Lagos, that sustained  policies on Micro, Small, and Medium Enterprises (MSME) will enhance economic development.

    He said Buhari’s experience in governance has positioned him to have a better understanding of the needs of the real sector and its strategic place in sustaining national development.

    According to him, for Nigeria to attain its goal of becoming one of the top economies, special attention should be given to MSMEs, a critical sector that would drive the economy effectively.

    He said:“The president-elect should give cognisance to MSMEs by addressing the various challenges facing it because that sector will help generate employment for its teeming unemployed youths.

    “The challenges of infrastructure, transportation and power are critical to the survival and growth of viable MSMEs. The issue of multiple taxes should also be addressed. If you listen to entrepreneurs in different parts of the country, they are saying the same thing. Federal Government is charging tax, states and local governments are also charging, all on a sector that is not moving forward.”

    Ubiji also urged Buhari to improve on President Goodluck Jonathan’s efforts in rail transportation and access to finance for MSMEs in the country.

    He said: “Most critically, the issue of access to finance is grinding MSMEs to a halt. President Goodluck Jonathan did something very spectacular on March 23, this year. He launched a new development finance institution for the country, called Development Bank of Nigeria.

    “It is a good initiative and I expect the president-elect to pay attention to it because it is a bank that is set up to address the issue of access to finance as it affects MSMEs in the country.”

    “You don’t throw away the baby with the bath water.”

    Pointing out that although Jonathan may have tried and failed in some areas and that there were some things he did that were good and commendable. He advised Buhari to constitute a strong and knowledgeable economic management team that would steer the economic affairs of the country to the desired change.

    He urged Buhari to appoint people who know their onions with regard to economic issues to advise him properly so that they would be able to come up with good economic blue print for the next four years.

    “Economically, Nigeria is not in good shape now. If the challenges facing the economy are not addressed then we are still where we are,” he said.

    The National Bureau of Statistics (NBS) recently put the number of MSMEs in Nigeria at more than 17 million.

  • NEDEP’s N1b credit line for Lagos MSMEs

    NEDEP’s N1b credit line for Lagos MSMEs

    The Federal Government has unlocked a N1billion special credit line, through the National Enterprise Development Programme (NEDEP), for Micro, Small and Medium Enterprises (MSMEs) and Cooperatives in Lagos State.

    The Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said the direct micro-enterprise funding further demonstrated the commitment of the current administration to developing enterprises at the grass roots in order to create jobs, enhance growth and ultimately reduce poverty.

    He said NEDEP provided the necessary platform for the sustainable ongoing funding of micro enterprises, adding that the disbursement of the N1billion loan to MSMEs in Lagos was part of ongoing MSME funding across the 36 states of the federation and would be in phases.

    Aganga spoke in Lagos on yesterday while presenting cheques to the beneficiaries of the first N100million special credit line.

    NEDEP is an initiative spearheaded by the Federal Ministry of Industry, Trade and Investment and its three parastatals – the Bank of Industry (BoI), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the Industrial Training Fund (ITF).

  • CBN disburses N40b MSMEs’

    The Central Bank of Nigeria (CBN) has disbursed a total of N40.3 billion out of the N220 billion Micro, Small, and Medium Scale Enterprises (MSMEs) fund it inaugurated last year.

    The disbursement of the funds to Deposit Money Banks (DMBs), Microfinance Banks (MfBs) and other stakeholders, falls below the N9.6 trillion financing deficit of this critical sub-sector of the economy.

    Its Head of Relationship Management, MSME Development Finance Department, Tobin Jonathan, who spoke at an MSM forum, said the apex bank is worried by low access to the fund by operators of the sector.

    The N220 billion, he added, is designed to address the gap and unlock the potential of the MSMEs  as an innovative way of improving their access to finance, shoring up their potentials for job creation and enabling them to reduce poverty within the country.

    He said the apex bank is, particularly, worried that since the fund was launched in August last year, stringent conditions attached to accessing it have prevented any segment of the economy targeted by the fund from accessing it.

    He said: “As we speak, N40.3 billion has been disbursed to state governments, commercial banks, MfBs,  financial co-operatives. We have disbursed to 19 state governments, some of them have taken first tranche of N1 billion.”

    He said complaints from the MSME operators suggested that the criteria were too strict and difficult to meet. This he said made the CBN Governor, Godwin Emefiele, to relax the criteria across board to make the funds more accessible.

    He added that the CBN has also addressed all other complaints raised by participating financial institutions including the spread of profit to cover their cost of operations.

    “They can collect the forms at two per cent and give it out at five per cent. So they have seven per cent spread which is good enough. That has encouraged so many of them to begin to apply,” Jonathan said.

    Participants in the fund include Micro, Small and Medium Entrepreneurs, DMBs, MFIs, MfBs, state governments, Federal Ministers, Heads of Government Agencies and Departments, International Development Agencies and captains of industries.

    The guidelines for disbursement showed that a 80:20 ratio for on-lending to micro enterprises and Small and Medium Enterprises (SMEs) and request that 60 per cent of the fund, representing N132 billion, be earmarked for providing financial services to women-owned businesses.

    The banking watchdog said that to ensure that productive sectors of the economy continue to attract more financing necessary for employment creation and diversification of the country’s economic base, a maximum of 10 per cent of the commercial component of the fund will be channeled to trading and commerce.

     

  • CBN to disburse 50% of N220b MSMEs’ fund by year-end

    CBN to disburse 50% of N220b MSMEs’ fund by year-end

    The Central Bank of Nigeria (CBN) is targeting 50 per cent disbursement of the N220 billion Micro, Small, and Medium Scale Enterprises (MSMEs) fund by year-end.

    CBN Head of Relationship Management, MSME Development Finance Department, Tobin Jonathan who disclosed this yesterday at an MSME workshop in Lagos, said the apex bank is jolted by operators’ low access to the fund.

    He said that the apex bank is particularly worried that since the fund was launched last August only N40.3 billion has been disbursed to operators because of the stringent conditions attached to accessing the funds.

    He said: “As we speak, N40.3 billion has been disbursed to state governments, commercial banks, Micro Finance banks, and financial Co-operatives. We have disbursed to 19 state governments, some of them have taken first tranche of N1 billion”.

    He disclosed that complaints from the MSME operators suggested that the criteria were too strict and difficult to meet, hence the CBN Governor, Godwin Emefiele decided to relax the criteria across board to make the funds more accessible.

    He added that the CBN has also addressed all other complaints raised by participating financial institutions including the spread of profit to cover their cost of operations.

    “So they can collect the forms at two per cent and give it out at five per cent. So they have seven per cent spread which is good enough. That has encouraged so many of them to begin to apply,” Jonathan said.

    Also, the Project Manager, Financial Infrastructure Project to the CBN, International Finance Corporation (IFC) and a resource person at the workshop, Ubong Awah, said:“We are collaborating with the CBN to establish the National Collateral Registry which will be launched by June”.

    He said it is important as part of effort to stimulate financing to the MSME sector in Nigeria stressing that collateral registry will provide part of the infrastructure for pushing the initiative ahead.

     

  • Fed Govt unveils N39.6b Business Devt Project for MSMEs

    Fed Govt unveils N39.6b Business Devt Project for MSMEs

    • Scheme to serve as collateral for MSMEs

    The Federal Government, yesterday launched the first ever Nigerian Business Development Services (NBDS) Network for effective performance of Micro, Small and Medium Enterprises.

    The N39.6billion (about $200m) project, called the Nigerian Business Development Services Network, is a  private sector business development service providers network that is expected to work with MSMEs across the country to mentor them, provide support services and link them up with financial institutions.

    Speaking during the launch of the NBDS and the unveiling of the National Business Development Services Market Place in Abuja, the Minister of Industry, Trade and Investment,  Olusegun Aganga, said the new initiative marked another milestone in the current administration’s determination to reposition the MSME sector as the major driver of inclusive and sustainable economic growth in Nigeria.

    “Today marks another milestone in the development of the MSME sector in the country. Over the course of this administration, we have championed the course of MSMEs and we have made them the centre of economic policy, he said, adding that government treated them as a distinct sector and has developed policies and programmes to enable them grow and contribute significantly to GDP growth.

    Aganga explained that in the latest survey on MSMEs, it emerged that access to funding was the biggest challenge for MSMEs in the country, pointing out that approximately 84.6 per cent of small businesses in Nigeria have to resort to personal savings and borrowing from friends and families.

    He said, in addition to helping MSMEs to formalise their operations, the NBDS would also serve as indirect collateral for small business operators.

    Aganga said part of the  reasons formal financial institutions give for not lending to this critical sector, is the informal nature of their operations, their poor record keeping and their lack of collateral in support of loans. “These are the issues to be addressed by business development service providers, he said.

    “They will help the small businesses with their accounting records, and with formalisation of their operations. In addition, they will serve as some form of indirect collateral because financial institutions will be more comfortable lending to small businesses when they know that they are being guided by professional businesses development service providers.”

    Aganda praised the World Bank for their productive partnership with the ministry, assuring that the NBDS initiative would go a long way in addressing sector specific challenges hampering the growth and development of major growth sectors of the nation’s economy.

    He said, “The launch of this network and programme would not have been possible without the support of the World Bank Growth and Employment (GEM) project, which is managed under the Ministry of Industry, Trade and Investment.

    “This is a $200 million programme, which is focused on stimulating industry-wide activities in certain sectors in order to create jobs and improve the fortunes of participants in those industries.”

    Aganga said the sectors were carefully chosen for their job creation ability and the multiplier effect that the development of these sectors have on the overall growth of the economy. He listed the growth sectors as Information and Communications Technology, Hospitality, Building and Construction, Entertainment and light manufacturing.

    He said the  project involves engaging with stakeholders in these sectors and addressing sector specific issues hampering the growth of these industries. Deserving companies in these industries will also be given grants that will enable them develop their concept, hire additional staff and grow their business.”

  • Involve OPS in N220b MSMEs fund’s administration, says chamber

    Involve OPS in N220b MSMEs fund’s administration, says chamber

    Access to the N220 billion Micro, Small and  Medium Enterprises (MSMEs) intervention fund by the Central Bank of Nigeria (CBN) remains a challenge for members of the Organised Private Sector (OPS).

    To ensure access to the fund, OPS members should be brought into its administration, the Director-General, Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), Mr. Emeka Okereke, has said.

    He told The Nation  that if OPS members were involved in the administration of the fund, some of the factors responsible for members’ lack of access to the fund would be addressed. “Some of our members don’t package their feasibility studies very well; they lack the capacity to do their feasibility,” he said, insisting: “OPS should be brought into the administration of the fund.”

    Reminded that the Bank of Industry (BoI) had earlier signed an agreement Business Development Service Providers (BDSPs) to help Small and Medium Enterprises (SMEs) package their loan requests, develop bankable business plans and proposals for to facilitate their access to finance, Mr. Okereke said most of the MSMEs don’t have the financial resources to hire experts or professionals to their feasibility studies.

    Describing the N220billion MSMEs fund as ‘a laudable objective capable of reinvigorating the sector’ the ECCIMA chief pointed out that most MSMEs lack good management structure and accounting system to make them attractive to financial institutions for any form of assistance.

    Noting that the N220billion MSMEs intervention fund is not charity, he said OPS members must possess all the basic criteria for accessing the fund, including a bankable proposal.

    Okereke pointed out that since the fund is a developmental thing, OPS members should be involved in its administration. According to him, this would allow a chamber like ECCIMA vouch for the integrity of its members wishing to access the fund. This, he said, would go a long way in reducing incidents of loan default, as the OPS would be engaged in setting eligibility criteria for assessing the loans.