Samsung Electronics has launched a Smart Signage TV, designed to provide small and medium enterprises (SMEs) with all that they require to get up and running with digital signage.
Director of Samsung Electronics West Africa’s Enterprise Business Division, Mr. Charles Ojei, said the new smart signage solution is specifically targeted at SMEs to improve productivity as well as lower operational cost.
“At Samsung, we understand the unique challenges that small business owners face when it comes to selecting and implementing technology, and we built this product to address the market need for a cost-effective, easy-to-manage, professional-grade solution that is better suited for these environments. With Samsung Smart Signage TV, we’re giving SMEs the power to enhance their customer communications and enable them to create more personalised content to drive conversations that extend long after a customer leaves the store to keep them coming back. The solution helps to Turn on Your Business,” he said.
Speaking further on the solution, its Head of Enterprise Display Unit, Mr. Anu-Rotimi Agboola, said: “It is available in 40-inch and 48-inch models, Samsung’s smart signage TV provides a complete platform for displaying digital content on promotions, sharing educational information about products and services, and broadcasting live TV for customer entertainment. Business owners can wirelessly connect to the TV from their laptop, tablet or mobile device to instantly publish and update content, or load new content using a USB drive. The solution boasts over 200 free templates for creating personalised signage designs and split-screen content.’’
To aid its development financing objectives, especially to Small and Medium Enterprises (SMEs), the Bank of Industry (BoI), has secured a $100 million line of credit from the African Development Bank (AfDB).
According to the bank, the line of credit, which is designed for on-lending to SMEs engaged in export-oriented businesses, is the first of such foreign facility accessed by BoI after its reconstruction in 2001 out of the defunct Nigeria Industrial Development Bank (NIDB).
The bank, in a statement at the weekend, explained that already, the first tranche of $50 million was recently disbursed to BoI from AfDB for on-lending to small businesses engaged in export-oriented businesses with capacity to generate foreign exchange.
BoI added that the credit approval was received as a result of the implementation of various strategies and plans which have enhanced its operations and repositioned it to better tackle the current challenges of Nigerian small businesses.
“In order to deepen the impact of the facility, BoI hired an
international firm, Messrs. BDO/GBRW, based on African Development Bank’s quality selection procedure, to render capacity building services to BoI staff and the prospective SME customers. The capacity building services would enhance the business capabilities of the SME customers thereby enabling them to better manage their businesses and mitigate risks. The capacity building would also strengthen the ability of staff members to manage small business loans and the related risk management issues.
“BoI wishes to acknowledge the support of the Federal Ministry of Finance, Debt Management Office (DMO) and the Central Bank of Nigeria (CBN) among other stakeholders for facilitating access to the Line of Credit”, the statement read in part.
The bank however urged prospective entrepreneurs engaged in export-oriented businesses with potential to earn foreign exchange to submit their applications to facilitate access to the facility.
A Lagos entrepreneur, Mrs. Ogo Ibok, is facilitating mentorship to help investors increase returns on agric investments and boost the sector‘s job creation potential. DANIEL ESSIET reports.
Chief Executive, Skill En hancement Centre (SENCE) Agric, Ikoyi, Lagos Mrs Ogo Ibok is an enterprise development specialist, who provides support to small medium businesses, especially start-ups.
She has consulted for a wide range of start-ups and multi-million Naira mid-level organisations, covering industries such as real estate, power, food, entertainment, IT, construction, education, transport and social sector etc.
She is promoting a mentorship project to help more Nigerians grow produce for international markets.
Addressing a day opportunities’ seminar in agribusiness in Lagos, Mrs Ibok said there was a need to accelerate agricultural growth and the way forward to foster an entrepreneurship climate in the agribusiness sector.
She briefed participants on agro business opportunities, new ventures, food business, seed and farm business, and fund facilitation for potential agribusiness entrepreneurs.
She spoke on business opportunities in the food sector and elaborated on funding opportunities to potential entrepreneurs.
She sought the participation of potential entrepreneurs present at the gathering, assuring them of effective business incubation and support to help move their agribusiness ideas and ventures forward.
She expressed concern that Kenyans and other Africans have taken over the foreign market while Nigerians with so much to offer are lacking behind with an opportunity to earn foreign exchange with dwindling oil revenue.
In the face of this, she explained that the growth of agro exports, needs to be placed in the broader context of the nation’s economic policy and performance.
This, according to him, means more Nigerians will have to export agro produce to enable the nation earn more income from other sources other than oil and create jobs.
The advantage is that the nation’s climate, soils and overall ecology are favourable for commodities production, making organic crops competitive.
According to her, organic produce is highly rated at export markets and are accorded premium prices.
Consequently, she has taken up a campaign to educate producers on how to improve their yields and quality and to take advantage of growing market opportunities.
She said as part of the project, would–be agro entrepreneurs will match with established farmers and exporters to enable them learn how to meet export standards to earn premium prices.
She maintained that mentorship as a form of skills development is essential in providing an opportunity for hands-on practical experience and a safe place to try new things under the guidance of an experienced mentor.
At SENCE, she said, the organisation networks with potential mentors, who can help new entrepreneurs take advantage of agribusiness opportunities.
At the international market, she noted that the most important concern among European consumers is food safety certification and compliance with environmental and ethical standards.
Meeting these requirements, she noted, presents a real challenge and some Nigerians are unable to remain as suppliers to the fresh vegetable trade with Europe. Yet, the rising food safety and other standards have provided an important opportunity to Kenyans and other Africans’ fresh produce to trade more generally.
The business of agro exports, she maintained, can be complex, with the sophistication required to compete at the high-value end of the market. The international market, she explained is affected by changing consumer demands, rising standards, and just-in-time delivery that necessitates careful supply chain management and close co-operation with the overseas clients.
The strategy, according to her, is for Nigerians to differentiate itself on the basis of product innovation and stringent quality assurance/food safety management systems.
She reiterated that her organisation is determined to facilitate the continued participation of many Nigerians in various ways, such as raising awareness on export standards and certification compliance.
On the other hand, she said, the local markets still provides some opportunities and that traditional commodities offer prospects for significant growth in volume and prices are expected to continue to increase.
She stressed the need for a high-quality and comprehensive agribusiness training programme, targeting small and medium enterprises (SMEs).
With a sizeable piece of arable land and elaborate farming skills offered by experts, Ibok said Nigerians engaged in different start-up agric businesses will be equipped with advanced skills and mentored on managing sustainable enterprises.
SENCE’s agribusiness skills training bolster agricultural production and productivity through modern agronomical practices, agro-processing and marketing.
If Nigeria is to improve agro business competiveness both locally and internationally, Mrs Ibok stressed the need to improve the efficiency in handling enterprise employees, marketing, quality of the product and capturing more value-added products in ways that will increase returns on investments and boost the agricultural sector job market.
SENCE, she said,promotes value chain linked business models that support farmers and agro entrepreneurs to produce for processing through their own investment in local cottage industries, as well as in financial inter-mediation, policy and regulation issues.
The event proved to be a highly valuable initiative to guide and mentor individuals interested in agribusiness.
The Bank of Industry (BoI) has partnered Grow Africa Equity Partners Limited to raise a $60 million Venture Capital Fund (VCF) for small and medium enterprises (SMEs). This is to expand BoI’s intervention in the industrial sector through loan disbursements.
Specifically, the VCF aims to provide equity capital, along with strategic and operational support to early stage and fast growing businesses involved in technology, agriculture, consumer goods and services sectors. Under the arrangement, BoI made an investment commitment of $6 million to aid provision of equity capital for fast growing businesses.
BoI’s Managing Director, Rasheed Olaoluwa, in a statement at the weekend, said: “Nigerian businesses cannot be built on debt alone. It has long been part of the bank’s vision to find ways to provide needed equity capital and business advice to promising businesses.”
He explained that the partnership with Grow Africa is one of the avenues for realising this vision and that the bank remains committed to the pursuit of its core mandate of providing long-term financial support to small, medium and large companies/projects in Nigeria’s key sectors.
Olaoluwa added that the investment commitment was informed by the track record of Grow Africa’s partners, the developmental impact of their existing portfolio and their strong pipeline for potential new investments.
The Chairman of Grow Africa Equity Partners Limited, Adedotun Sulaiman, noted that with the right type of support, Nigerian businesses can become global leaders. Sulaiman, who also chairs the Boards of Interswitch, SecureID, IDEA, New Horizons and others, said: “Over the past 10 years, I have provided capital and advice that have helped several businesses grow from ideas into multi billion Naira industrial leaders. Through this partnership, I hope to see many more entrepreneurs realise their dreams of creating leading companies and delivering massive value to Nigeria.”
Managing Director of Grow Africa Equity Partners Limited, Afam Edozie, added that, “We are extremely pleased with this partnership with BoI, and this is a strong signal of the bank’s commitment to supporting indigenous Fund Managers to catalyse growth and sustainable development in Nigeria.”
Edozie said the new investment will increase development impact and socio-economic benefits through the creation of additional jobs, development of local entrepreneurship and will create additional fiscal revenue to government. He added that BoI has demonstrated that it shares his company’s dedication and passion in helping to build world class industries in Nigeria.
BoI is Nigeria’s leading industrial development financing institution. The bank has a loan portfolio of N592 billion to projects in Nigeria’s real sectors including agro-processing, solid minerals, gas & petrochemicals, as well as engineering & technology. It also upports SMEs through a network of 14 offices across Nigeria and 122 Business Development Services Providers (BDSPs).
Sterling Bank has said its ‘Get Ready For Work’ initiative for this year will be extended to entrepreneurs and owners of small businesses to enable them add more value to their enterprises.
The bank’s Executive Director, Finance & Strategy, Abubakar Suleiman who disclosed this yesterday in Lagos, said apart from getting the youths ready to pursue their career choices and helping them acquire the required skills, the lender will also through the programme, reduce the unemployment rate in the country.
Suleiman, who spoke ahead of this year’s edition of the event coming up on the September 11, said that Get Ready For Work’, now in its third year, is the bank’s way of giving back to the society and equipping the youths with the right skills to succeed in their jobs.
He also said the lender is considering extending its ‘Get Ready For Work’ initiative to more states of the Federation and encouraged other banks to join in the project.
He said that the lender was committed to helping to reduce the high level of youth unemployment in the country, pointing out that there would be serious consequences for the society if the problem is not addressed.
According to him, “There is no country in the world that would not be affected by a high level of youth unemployment. Once youth employment stands above 25 per cent in any country, that country is heading for chaos.”
He noted that the problem of youth unemployment in the country had been made worse by the fact that what students are taught in schools these days often leaves them ill-equipped to handle simple tasks when they eventually secure employment.
Speaking at the event, Executive Director, Field of Skills and Dreams VTE Academy (FSD) Omowale Ogunrinde, commended Sterling Bank for investing in the future of youths in country through the initiative.
According to her, the bank was responsible for organizations like hers agreeing to take part in the programme without charging participants professional fees. Last year the bank held the ‘Get Ready for Work’ concert in Ibadan which was designed to change the mindset of graduates towards entrepreneurship and equip them with skills to bridge the gap between employee expectations and employer requirements.
Heritage Bank and the Entrepreneurship Development Centre (EDC) of the Pan Atlantic University (PAU) are looking at ways of improving business opportunities available to Small and Medium Enterprises (SMEs).
To achieve this, both institutions will next month, hold a conference where top chief executive officers of key institutions will discuss prospects for the SMEs subsector.
Speakers at the ninth EDC annual SME conference Heritage Bank Executive Director, are Mrs. Mary Akpabome; CEO Centre for Leadership at PAU, Prof Pat Utomi; Founder Coscharis Group, Dr Cosmos Maduka; CEO Design Options, Mrs Ifeyinwa Ighodalo.
Heritage Bank Managing Director/Chief Executive Officer, Ifie Sekibo said partnering with EDC to organise this conference is part of the lender’s efforts to help SMEs get better and bigger, which is one of the strategic objectives in our its of Enterprise Bank.
“Each of these CEOs have proven track record in various business endervours which are nationally acclaimed. We believe that their testimonials will serve a big boost of inspiration for SME operators that would attend the conference”, he said.
Over the years, Heritage Bank has partnered with EDC and other organisations to help SMEs build competence, access new opportunities and develop necessary leadership skills required for success in the business world.
These include the Heritage Bank SME Clinic, Heritage Governance Model, the Paris Club Credit Scheme and the Enterprise Stories, a radio programme whichfocuses on stories of successful entrepreneurs. The sponsorship of the Annual EDC’ SME Conference is to complement these initiatives, which are aimed at promoting SME development in Nigeria.
The SME Conference is a forum for members of EDC Business Network, and other SMEs alike to come together to learn, interact and share experiences. Last year, the conference with the theme “Model, Money and Market- Positioning Your Organization” brought together more than 500 people made up of SME owners, SME stakeholders, representatives of financial institutions. In the past three years, Heritage Bank has partnered with the centre on this annual event.
Stakeholders in the health sector have identified well-funded small and medium scale enterprises (SMEs) as a tool to drive sustainable healthcare. According to them, SMEs deliver 60 per cent services in the sector.
They spoke at a health sector small and medium scale enterprises forum with the theme: Exploring opportunities for SMEs financing in the health sector.
It was organised by the Lagos State Ministry of Health in collaboration with UKAID’s Partnership for Transforming Health System Phase II (PATHS 2) and Bank of Industry (BoI).
Permanent Secretary, Lagos State Ministry of Health, Dr Modele Osunkiyesi, said the availability of funds to drive the health system is important.
The state government, she said, cannot drive the financial investment needed for a viable healthcare system alone, without creating a synergy and a friendly environment for private sector-driven healthcare delivery.
Dr Osunkiyesi, represented by the Executive Secretary, Health Facilities Monitoring and Accreditation Agency (HEFAMAA), Dr Mabel Ajekugele, said the major challenge is the need to consider the demand and supply aspect of the healthcare system. She added that finance is another constraints.
“The budgetary allocations to overhead cost, payment of salaries and wages to our teaming healthcare workers are worrisome if we are to address the problems of other sectors,” she said.
She urged financial institutions and supporting partners to make funds available to health facilities, especially those in the private sector to provide qualitative healthcare.
Managing Director, Bank of Industry (BoI), Mr Rasheed Olaoluwa, said healthcare is very important to development, adding that it is the indices of millennium development goals (MDGs).
Olaoluwa, who chaired the occasion, noted that healthcare must be qualitative to improve the competitiveness.
The BOI, he said, has been supporting the sector to access funds, adding that eight companies are using the bank’s facilities to attain good manufacturing practice.
“Two companies have achieved that,” he said.
Olaoluwa said companies with good proposals should come forward, adding: “We have 14 offices across Nigeria to look after their interests.”
BoI, he said, would continue to support investors in the sector, stressing that the bank only considers business models that are very clear.
“As a lender we want to be sure that their businesses can generate sufficient funds to pay back their loans,” he said.
He said BoI usually looks at the quality of the team a company presents, dedication and passion. For him, 100 percent commitment is important to accessing loans.
National programme manager, PATHS 2, Mr Mike Egboh, said it was good to know that banks and the health sector are working together.
PATHS2, he said, has been receiving support from the United Kingdom’s Department for International Development (DFID), adding that the programme, which hitherto was for six years has been increased to eight years.
The aim, he said, was to use the country’s resources effectively and efficiently to achieve development, especially in delivering effective, quality and sustainable pro-poor health system.
He condemned the lack of development in the country, stressing that Nigeria’s position as the seventh largest producer of oil did not transform to a vibrant economy.
“The country contributes 10 per cent of maternal mortality globally. Some war-torn countries are better off. Liberia’s health indices are better than those of Nigeria,” he said.
Egboh said if there is adequate investment in the healthcare, there would be development, which would reduce health tourism.
“Many Nigerians still lack access to healthcare. There is the need for us to have social responsibilities,” he said.
He called on investors to take advantage of benefits, which abound in the health sector because doctors are not real businessmen as their calling is to save lives.
“Healthcare should be everybody’s business. Health practitioners need help because they cannot do it alone. The federal and state governments need to contribute their quotas,” he said.
Former Permanent Secretary, Lagos State Ministry of Health, Dr Femi Olugbile said SMEs are responsible for taking care of health seeking encounters of people daily.
According to him, there are less than 300 state-owned health facilities in Lagos with the rest totaling about 3000 owned by private sector.
Olugile, who spoke on the ‘’Role of government in promoting SMEs in the health sector’’, said the governments have their hands full with responsibilities of governance and running of health policies and programmes.
Skye Bank has held its Small and Medium Enterprises (SMEs) seminar in Kano to share new business methods with operators.
On the occasion, the bank pledged its support to the manufacturing sector as a veritable catalyst of change and harbinger of economic development.
The Executive Director, Abuja and Northern Directorate, Mr. Idris Yakubu, said manufacturing represents a good approach to diversifying the economic base of the country.
Yakubu said aside providing employment, manufacturing enhances the tax net of the government and increases its ability to handle developmental projects.
He described Kano as crucial to the economy as it hosts many companies.
A former Speaker of the House of Representatives, who is a major manufacturer in Kano, Alhaji Salisu Buhari, advised SME operators to seek the input of experts and the advice of consultants when setting up their businesses.
According to him, such experts’ advice will help them to avoid pitfalls in business and set them on the right course. He said learning about the business from an expert is a sure guarantee for success.
Buhari advised manufacturers and those aspiring to go into the business to acquire enough information about the line of business they want to invest in.
The Head, Retail Banking Group, Skye Bank Plc, Nkolika Okoli, thanked the SME owners for attending the seminar, promising to support and transform their businesses into successful enterprises.
Okoli said the bank would hold the seminar across the country as its contribution to building the required skill and knowledge for small business owners to run their companies.
Head, Small Business Group, Skye Bank, Ayo Olojede explained: “Helping business owners to achieve the best in their businesses with a platform like the SME seminar is important to SkyeBank. We understand that many SMEs lack management skills and do not understand the process of accessing fund. We are eager to proffer solutions to some of these challenges to help the growth and development of SMEs in Nigeria, knowing how fundamental it is to the growth of the nation’s economy. We want to add value to our customers, and help their businesses grow.”
Some small businesses may be given a cash injection thanks to GEMS4 £3.5 million matching Challenge fund, a United Kingdom sponsored project that focuses on developing business leaders and ideas along various sectors of the economy. The GEMS4 Enterprise Challenge Fund is a cost sharing grant scheme.
GEMS4 Spokesperson, Kikelomo Koya, said unequivocal proof of the dedication of applicant contributions to the project will be required before grants are disbursed to applicants.
Koya said the fund is to encourage enterprises come up with creative business ideas which benefit local communities and result in jobs and income opportunities for the poor.
The best ideas will receive grant investment of up to £150,000 with special consideration for applications from women owned or managed enterprises.
According to her, individuals can pitch their business ideas to win funding and support.
She said the Challenge Fund will invest in businesses wishing to implement commercially viable and high development impact projects, with the intent to spur business innovation and investment in agribusiness development across the country.
Applications will be assessed during rounds.
So far, she said GEMS4 has provided financial and technical support to innovative business ideas that tackle the loss of perishable produce due to spoilage and wastage, or create income opportunities for women.
It has been identified that seven out of every 10 baskets of perishable food produce such as tomatoes, pepper, and vegetables are lost within the value chain before it gets to the end consumer due to poor preservation techniques and storage facilities, while many women in the wholesale and retail sector which contributed (N22 trillion) to last year’s national Gross Domestic Product(GDP) are poor.
Eligible organisations, according to her are encouraged to apply for the GEMS4 Enterprise Challenge Fund through a funding window.
Each funding window seeks to address a specific market problem facing small and medium enterprises, small-holder farmers/producers, poor and vulnerable men and women engaged in economic activities within the wholesale and retail sector, and its value chain.
Deadline for submission of applications is August 24, 2015. Applications submitted after the deadline date will not be accepted or processed.
The maximum duration of projects to this funding round of the GEMS4 Enterprise challenge fund is six months. The GEMS4 Enterprise Challenge Fund will end on December 30, next year.
GEMS4 has been involved in the training of agro entrepreneurs in the handling , transporting and packaging tomatoes. In Mile 12 market, traders have been encouraged to adopt good handling practices to preserve tomato shelf life and maintains quality. The GEMS4 pilot, provided access to returnable plastic crates for transporting and packaging tomatoes, and facilitated an instalment repayment plan, enabling traders purchase the plastic crates.
Applicants are advised to send enquiries to the fund manager via challengefund@coffeynigeria.com or call +23413428155
The Central Bank of Nigeria (CBN) has taken measures that will encourage banks to support Small and Medium Enterprises (SMEs). Many banks have keyed into the policy, instituting internal measures and finding ways to woo SMEs, COLLINS NWEZE reports.
Banks product development and risk management units are becoming more creative on how they fund Small and Medium Enterprises (SMEs). The banks, which have the backing of the Central Bank of Nigeria (CBN), are thinking outside the box on their approaches to SMEs’ financing.
CBN set the ball rolling when it set up guidelines for the management of the N220 billion Micro, Small and Medium Enterprises Development (MSME) fund it launched last year to support SMEs’ financing. It said the fund would be managed by a Special Purpose Vehicle (SPV). But CBN will manage the fund, pending the establishment/appointment of the SPV or Managing Agent (MA).
The regulator said many unserved and under-served clients are in the MSME sub-sector, stressing that to address the funding requirement of this critical segment of the economy, an 80:20 ratio for on-lending to micro enterprises and SMEs respectively has been designed.
The CBN said women’s access to financial services should increase by 15 per cent annually in order to eliminate gender disparity. It also said to achieve this, 60 per cent, N132 billion of the fund has been earmarked for providing financial services to women.
The regulator said that in operating the fund, special consideration will be given to institutions that will provide financial services to graduates of the Central Bank of Nigeria’s Entrepreneurship Development Centres (EDCs).
Also, 10 per cent of the fund will be earmarked for social and developmental objectives as grants, N11 billion; Interest Drawback Programme, N6.60 billion; MA’s Operational Expenses N4.4 billion. However, MA is expected to generate income from its operational activities to fund its future expenses on a sustainable basis.
It explained that N6.6 billion earmarked for Interest Drawback will be used to settle the rebates to financial institution’s customers under the fund who repay their loans as and when due while the N11.0 billion for grants will fund programmes that are aimed at developing the MSME sub-sector.
However, 90 per cent of the fund, amounting to N198 billion, will be utilised for the provision of direct on-lending facilities to participating financial institutions.
It said participating financial institutions can only finance agricultural value chain activities; trade and general commerce; cottage Industries; artisans among others.
The banking watchdog said 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 channelled to trading and commerce.
Lenders’ responses
• Adeola
Managing Director, Sterling Bank Plc, Yemi Adeola said the bank is introducing in an innovative manner competitions, ideas, innovations; making it possible for young entrepreneurs to be able to think beyond the negative society ills and build strong businesses.
The bank, he said, instituted the “Meet the Executive” programme meant to select three young Nigerian entrepreneurs that will not only get project-based grants but would be introduced to local and international investors.
Speaking during a meeting with participants in the programme, he described entrepreneurs as the backbone of the economy, adding that the programme is driven by the lender’s passion for helping budding entrepreneurs attain great heights.
“We plan to choose three out of the whole people, and work out the modalities or logistics of the fund with them, but it is easy money. The fund will be project-based,” he said.
Also, KPMG, an international consulting firm, has named First City Monument Bank (FCMB) Limited as the fourth most customer-focused bank in Small and Medium Enterprises (SMEs).
The report on the ranking showed the bank got the recognition after scoring 74.94 per cent. It also came fifth in retail banking with 73.16 per cent based on comments by customers surveyed by KPMG.
This performance, which is coming barely four years after the Bank transformed to become a retail and commercial banking-led lender, is an improvement when compared to 2014 when it occupied the eight and seventh positions in the SMEs segment and retail banking space, respectively.
The rating, as contained in the 2015 report of the KPMG Banking Industry Customer Satisfaction Survey (BICSS), was on the basis of Customer Satisfaction Index (CSI), which took into account convenience, product/service offering, excellence, and value for money and customer care. The KPMG BICSS survey was launched in 2007 to heighten the consciousness of service delivery among Nigerian Banks. The survey has evolved over the years and in 2015, the scope covered over 23,000 retail customers, 2,800 SMEs and 400 corporate/commercial organisations across the country.
• Balogun
The Group Managing Director/Chief Executive, Mr. Ladi Balogun, said that, “this is a welcome development”, adding that, “it shows that we are on the right path towards achieving our goal of attaining the highest levels of customer advocacy in the industry”. He further stated that the upward rating of the bank, “is a demonstration that the various initiatives we are driving in the areas of service, products offering and operations to enhance customer experience are yielding the desired results and our customers appreciate them”.
Skye Bank Plc has gone into a consultancy partnership with the International Finance Corporation (IFC), to evolve an effective lending framework for medium, small and medium enterprises (MSMEs).
In a statement, the bank said the partnership would produce a new lending framework for Small and Medium Enterprises (SMEs) that would de-emphasise relying on collateral rather than evaluating business viability.
Based on this new framework, when a business passes the viability test, the bank can consider nontraditional collateral options outside real estate to reduce the difficulty faced by business owners in their bid to secure credit facilities from banks.
It said the bank has also concluded plans to stop charging commission on turnover (COT) on all retail current accounts, well ahead of the deadline given by the Central Bank of Nigeria.
Heritage Bank Limited expressed its commitment to building a network of Entrepreneurial Leaders necessary to drive the growth of Micro Small and Medium Enterprises (MSMEs) in the country.
Its Managing Director/Chief Executive Ifie Sekibo said the lender developed and introduced wide range of services to address the capacity and financing needs of MSME businesses.
“The goal of Heritage Bank’s MSME offerings is to build a network of entrepreneurial leaders that will drive the growth of the sector. This would enhance the ability of the MSME sector to effectively play its role as the engine growth of the economy,” he said.
Heritage Bank’s commitment to leadership building in the MSME sector is reflected in the bank’s SME Clinic. “The Heritage Bank SME Clinic is designed to enhance the entrepreneurial capacity of our SME customers. Through the Clinic, Heritage Bank understands the different aspects of the customer’s business in order to identify areas where it can add value. As a result we are able to develop customised products and services based on the identified needs of each SME customer,” Sekibo said.
This, he added, is complemented with Heritage Governance Model, through which the lender introduces Corporate Governance Framework to its MSME customers. The phase one of the scheme focuses company secretary services; auditing and assurance; accounting services; and tax consultancy. These services, he said, are rendered to SME customers of the bank at subsidised fees by network of consultants.
• Wigwe
Likewise, the Group Managing Director, Access Bank Plc, Herbert Wigwe has reiterated the bank’s commitment to financial empowerment of SMEs and youths in Africa.
Speaking at the Africa Sustainable CEO Business Roundtable held in Lagos, the bank chief who discussed how the lender is financing youth entrepreneurs and SMEs in the continent said traditional problems such as access to finance, environment and the right knowledge on the society where they operate are some of the factors affecting today’s youths.
Wigwe, who was represented by the Executive Director, Personal Banking, Victor Etuokwu disclosed that the lender has a team that drive and add value to SMEs in the country.
Fund disbursement
However, the CBN has reported that only about 20 per cent of the N220 billion Micro, Small, and Medium Scale Enterprises (MSMEs) fund has been disbursed to beneficiaries, the Central Bank of Nigeria (CBN) has said.
CBN Director, Banking Supervision, Mrs. Tokunbo Martins, said the supervisory bank was working on ways of ensuring that more funds get to the critical sectors of the economy.
Head, Relationship Management, MSME Development Finance Department, Tobin Jonathan, said CBN was jolted by low access to the fund by operators.
CBN, he said, is worried that since the fund was launched last August only insignificant portion has been disbursed to operators because of stringent conditions attached to accessing the funds.
MSME-operators, Ibrahim said, were complaining that the criteria were too difficult to meet hence CBN Governor Godwin Emefiele relaxed them to make the funds more accessible. He added that the CBN also addressed other complaints 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.
He said it is important as part of efforts to stimulate financing to the MSME sector in Nigeria, stressing that collateral registry would provide part of the infrastructure for pushing the initiative ahead.
