MSMES

CBN advances loans to MSME at single digit

by with No Comment Businessfinance

The Central Bank of Nigeria (CBN) says it will continue to provide opportunities for Micro, Small and Medium Enterprises (MSMEs) to access loans without difficulty at single-digit rate as part of efforts to entrench a vibrant economy.

READ ALSO: NNPC Signs $1.5bn PH Refinery Rehab.

Samson Isuwa, the Nasarawa State controller of the apex bank, stated this at the opening of a three-day Nasarawa Entrepreneur Boot-camp in Lafia, the state capital.

According to Samson, CBN has remained consistent in initiating loan schemes covering agriculture, the entertainment industry, small scale business owners, among others at a single-digit interest rate to achieve Federal Government’s drive to economic prosperity.

He said interest rate for small scale businesses was at the moment 7 percent, adding, however, that this would soon rise to 9 percent to address the prevailing economic challenges.

He maintained that, henceforth, CBN would insist on only genuine business owners benefitting from such loans.

He said those collecting loan without utilising for the purpose it was meant would be denied the opportunity. He described the workshop for entrepreneurs as apt and advised participants to seize the opportunity to develop business strategies that would add value to their economic status.

Nasarawa commissioner for commerce, trade and investment, Obadiah Boyi said the loan would complement the effort of the Nasarawa entrepreneurs by encouraging them with all the necessary support required for SMEs to succeed in the state.

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MSME Tailors

FG disburses MSME Survival Fund to tailors

by with No Comment Businessfinance

The Federal Government has commenced the disbursement of its Micro, Small, and Medium Enterprises, MSME, Survival Fund to tailors, artisans in Lagos State.

The Special Assistant to the President on MSMEs/DFIs, Tola Johnson, said so far in the Bariga cluster alone, over 400 people had benefitted from the scheme, with11other clusters approved last week.

READ ALSO: MSME Clinic To be Flagged Off by VP Osinbajo And Pantami

Johnson stated this at the activation of the Artisan Scheme of the MSME Survival Fund by the Bank of Industry in Bariga area of Lagos on Thursday.

He explained that the fund was created to cushion the effect of the COVID-19 pandemic on small businesses in the country, reaffirming the Federal Government’s commitment to supporting MSMEs.

He said, “It is no news that the pandemic affected many businesses and the government in its wisdom thought about how it could support different clusters of people. We have people for the payroll support, the artisan and the transport sectors.

“We also have people that we give money to cushion the effect of the pandemic on their businesses. The Federal Government resolved to support 500,000 people every month for three months, while also supporting 303,000 artisans with N30,000 one-off grant and N50,000 to about 100,000 businesses that have been affected by the pandemic.”

According to him, the government will carry out monitoring and evaluation of the fund to ensure that it is disbursed judiciously.

Johnson added, “We are carrying out this programme in phases so that we can learn from the mistakes of the first and correct in the second stream. We are actually trying to monitor to a large extent to ensure that what was approved is what is being done.”

He said a second stream of states was waiting for approval for disbursement.

“For the payroll segment, we will let the public know when we want to commence disbursement. Every state has about 6,600 new business names to be registered for free, but the Federal Government is paying N6, 000 per business to the Corporate Affairs Commission.

The Chairman, National Union of Tailors, Bariga Chapter, Balogun Olatunde, commended the government for supporting small businesses and urged the government to do more.

He said most of the tailors under his jurisdiction were looking for loans to expand their businesses.

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now now

Registration for FG’s MSME survival fund to open Monday

by with No Comment Businessfinance

The federal government has announced that registration for the N75 billion survival fund for micro, small and medium enterprises (MSMEs) will begin on Monday, September 21.

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Mariam Katagum, minister of state for industry, trade and investment, said the programme is aimed at tackling the economic challenges faced by small businesses as a result of the coronavirus outbreak.

Katagum was speaking at the virtual commissioning of the fashion cluster shared facility for MSMEs tagged ‘Eko Fashion Hub’ in Lagos on Friday.

Katagum explained that the programme, which would run for an initial duration of three months, would be opened for 1 .7 million entities and individuals across the country.

“The federal government is fully committed to empowering Nigerians; more so in the face of the COVID-19 pandemic,” she said.

“In this regard, the government, through the economic sustainability committee had announced specific programmes aimed at cushioning the impact of COVID-19 on MSME businesses.

“These programmes include among others, the N75 billion MSME survival fund and Guaranteed Off-take schemes of which I have the honour to chair the steering committee for the effective implementation of the projects.

“The project, which will run for an initial period of three months, is targeting 1.7 million entities and individuals and has provisions for 45 percent female-owned businesses and five per cent for those with special needs.”

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FG SMEs

FG to support MSMEs with $1bn syndicated loan

by with No Comment Businessfinance

As part of efforts to boost Nigeria’s economic recovery and sustainable growth, the Bank of Industry (BoI) under the supervision of the Federal Ministry of Industry, Trade and Investment has concluded a $1billion syndicated term loan in conjunction with international partners to further support Small and Medium Scale Enterprises (MSME) in the country.

READ ALSO: BusinessDay with NetPlusDotCom Set to Host March Edition of Monthly Digital Webinar Series for SMEs

Minister of Industry, Trade and Investment, Otunba Adeniyi Adebayo, said the loan is aimed at “further improving the capacity of the bank to effectively support Micro, Small and Medium Scale Enterprises (MSME) – across key sectors of the Nigerian economy – with affordable loans of medium to long-term tenor, alongside moratorium benefits.”

Adebayo who disclosed this on Monday at the Quantum Mechanics Limited MSME Survival Fund capacity building programme in Abuja, also said discussion were ongoing with Dunn & Bradstreet to establish an SME risk rating agency – the SME Rating Agency of Nigeria (SMERAN), to provide empirical basis  for analysing the eligibility of SMEs to access credit.

The Minister who spoke on efforts of the Federal Government at supporting MSMEs in the country said, “I will like to reiterate that our Ministry fully supports MSMEs, as demonstrated by our MSME Survival Fund Initiative launched in the wake of the COVID-19 pandemic by the Federal Government as part of the Nigerian Economic Sustainability Plan (NESP); aimed at protecting MSME businesses from shocks the pandemic. The Fund comprises the Payroll Support Scheme which aims to support MSMEs in meeting their payroll obligations and safeguard jobs by paying up to N50,000 to a maximum of 10 employees in each MSME for three months; the Artisan and Transport Grant which supports self-employed artisans with a one-off payment of N30,000 targeting 333,000 individuals; the General MSME Grant which will provide 100,000 MSMEs with one-off grants of N50,000 each; and the Guaranteed Offtake Scheme which will engage approximately 100,000 businesses across the country to produce items typically manufactured in their locality, targeting 300,000 beneficiaries, including free registration of companies for 250,000 beneficiaries.”

He explained that the survival fund was estimated to save at least 1.3 million jobs across the country…

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