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.
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.
The broad objective of the Fund is to channel low-interest funds to the MSME sub-sector of the Nigerian economy through PFIs to:
In line with the provisions of the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, enterprises to be funded under the Scheme include:
The following are eligible activities under the Fund:
Microenterprises
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
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