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CBN MSMEDF 2022 – All You Need To Know

The CBN established the MSME Development Fund with a N220 billion share capital. The Fund was founded in acknowledgment of the Micro, Small, and Medium Enterprises (MSME) sub-substantial sector’s contributions to the economy and the massive financing shortfall that exists.

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Ten percent of the Fund has been set aside for developmental goals such as grants, capacity building, and administrative costs, while the remaining ninety percent (90%) will be released to Participating Financial Institutions (PFIs) at a rate of two percent for on-lending to MSMEs at a maximum interest rate of nine percent per year.

Agricultural value chain, services, cottage industries, craftsmen, trade and commerce, and any other income-generating enterprise as stipulated by the CBN from time to time are all eligible for funding.

The MSMEDF’s Objectives

The Fund’s broad goal is to use PFIs to route low-interest funds to the Nigerian economy’s MSME sub-sector in order to:

Enhance access by MSMEs to financial services;

  • MSMEs’ improved access to financial services
  • Improved Microenterprises’ productivity and output
  • Improved Employment and wealth creation
  • Encouraged Inclusive growth

Benefits Of The MSMEDF To Some Stakeholders

PFIs

The Developmental Components will be used to enhance the capacity of PFI employees, conduct research, and provide additional financial services infrastructure to MSMEs.

MSMEs

The Developmental Components will be used to enhance the capacity of PFI employees, conduct research, and provide additional financial services infrastructure to MSMEs.  This has resulted in lower borrowing costs, which will have a favorable influence on MSMEs’ profitability.

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Sub-sector of Microfinance

The Fund will offer liquidity to the sub-sector and strengthen the financial system’s overall stability.

General Public

Job creation in the general public sector

Eligible Activities Under The MSMEDF

The Scheme will fund the following firms in accordance with the provisions of the Revised Microfinance Policy, Regulatory, and Supervisory Framework for Nigeria:

  • 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 products and technologies
  • Trade and general commerce
  • Other economic activity as may be prescribed by the CBN

Note that only 10% of the Fund’s Commercial component will be used for trade and commerce.

This information was first published on nyscinfo.comDMCA PROTECTED.

Source: Nyscinfo

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  1. EMMANUEL FESTUS

    at

    NOTIFY ME ON GRANTS AVAILABLE PLEASE

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