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LequteMan
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The Central Bank of Nigeria (CBN), stopped governors of some states in the country from using the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEs) launched in August 15, 2013 to score political gains and jettison the motive it was created for, the Acting Director, Development Finance Department of CBN, Dr. Mudashiru Olaitan, said in Katsina.
Represented by Mr Babatunde Ogunlaja, Assistant Director in the same department, Olaitan according to Daily Independent, said the CBN took the decision in the interest of the target audience and also to cater for the interest of women who are the major target of the fund.
“A state government is allowed a maximum of N2 billion under the scheme but that is the best the state can do, they are not given the money directly because of political reason and as a result, the money will be disbursed through participating financial institutions (PFIs). A good number of states were turned down when they requested to disburse this fund directly”.
He added that access to finance has been identified as the most critical challenge to MSMEs development in Nigeria. The financing gap of the MSMEs sub sector of the country is estimated at N9.6 trillion in 2010 (IFC& McKinsey).
“In recognition of this, the CBN launched the N220 billion MSME development development fund to provide long term affordable funding the sub-sector. The Micro, Small and Medium Enterprises Development Fund (MSMEs) would provide a long term affordable funding for MSMEs sub-sector. This will require the commitment of all stakeholders in order to achieve the desired objectives of real sector growth of the Nigeria economy”.
However, the CBN has put in place a robust monitoring strategy to ensure compliance with the guidelines for operations of the fund.
#Nigeria #CBN
Represented by Mr Babatunde Ogunlaja, Assistant Director in the same department, Olaitan according to Daily Independent, said the CBN took the decision in the interest of the target audience and also to cater for the interest of women who are the major target of the fund.
“A state government is allowed a maximum of N2 billion under the scheme but that is the best the state can do, they are not given the money directly because of political reason and as a result, the money will be disbursed through participating financial institutions (PFIs). A good number of states were turned down when they requested to disburse this fund directly”.
He added that access to finance has been identified as the most critical challenge to MSMEs development in Nigeria. The financing gap of the MSMEs sub sector of the country is estimated at N9.6 trillion in 2010 (IFC& McKinsey).
“In recognition of this, the CBN launched the N220 billion MSME development development fund to provide long term affordable funding the sub-sector. The Micro, Small and Medium Enterprises Development Fund (MSMEs) would provide a long term affordable funding for MSMEs sub-sector. This will require the commitment of all stakeholders in order to achieve the desired objectives of real sector growth of the Nigeria economy”.
However, the CBN has put in place a robust monitoring strategy to ensure compliance with the guidelines for operations of the fund.
#Nigeria #CBN
