Apply for CBN Micro, Small and Medium Enterprises Development Fund (MSMEDF) 2022 below.
Newsonline reports that the CBN has launched the MSME Development Fund with a share capital of N220 billion. The Fund was established in recognition of the significant contributions of the Micro, Small and Medium Enterprises (MSME) sub-sector to the economy and the existing huge financing gap.
ALSO: 100 For 100 PPP: CBN Disburses N29 Billion To 31 Companies (Full List)
Ten (10) percent of the Fund has been devoted to developmental objectives such as grants, capacity building and administrative costs while ninety (90) per cent commercial component will be released to Participating Financial Institutions(PFIs) at 2% for on-lending to MSMEs at a maximum interest rate of 9% per annum.
Eligible activities to be financed include agricultural value chain, services, cottage industries, artisans, trade and commerce and any income-generating business as may be prescribed by the CBN from time to time.
Objectives of the MSMEDF
The broad objective of the Fund is to channel low-interest funds to the MSME sub-sector of the Nigerian economy through PFIs to:
- Enhance access by MSMEs to financial services;
- Increase productivity and output of microenterprises;
- Increase employment and create wealth; and
- Engender inclusive growth
Benefits of the MSMEDF to Some Stakeholders
- PFIs
The Developmental Components will be utilized for capacity building of staff of PFIs, research and provision of other financial services infrastructure - MSMEs
Long term single digit loans at 9% p.a. This has resulted in reduced cost of borrowing which will impact positively on the earnings of the MSMEs - Microfinance Sub-sector
The Fund will provide liquidity for the sub-sector and result in general improvement of the financial system stability - General Public
Job creation
Eligible Activities under the MSMEDF
In line with the provisions of the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, enterprises to be funded under the Scheme include:
- Micro Enterprises
- Small and Medium Enterprises (SMEs)
The following are eligible activities under the Fund:
Microenterprises
- Agricultural value chain activities
- Cottage Industries
- Artisans
- Services
- Renewable energy/energy efficient product and technologies
- Trade and general commerce
- Other economic activity as may be prescribed by the CBN
Note: Only 10% of the Commercial component of the Fund shall be channeled to trade and commerce.
Click here to see frequently asked questions on Micro, Small and Medium Enterprises Development Fund
