Launch of a €1 billion MSME Fund in Nigeria
A new N220 billion (€1 billion) Fund dedicated to micro, small and medium-sized enterprises (MSMEs) has been launched by the Central Bank of Nigeria.A new N220 billion (€1 billion) Fund dedicated to micro, small and medium-sized enterprises (MSMEs) has been launched by the Central Bank of Nigeria.
According to the institution, the Fund is designed to enhance MSME's access to finance by providing wholesale financing windows for Participating Financial Institutions (PFIs).
It aims to improve the capacity of PFIs to meet the financing needs of MSMEs, provide funds at reduced cost to PFIs and improve microfinance institutions' access to finance.
The CBN added that MSMEs have been unable to realise their huge potential for economic growth because of inadequate and inefficient infrastructures, the difficulty for small companies to provide
lack of adequate credit history.
"In 2012, Nigeria had about 17.6 million MSMEs employing about 32.4 million people, and contributing about 46.54 per cent of nominal
said CBN governor Mallam Sanusi Lamido Sanusi, quoted by Leadership newspaper.
However, a recent survey by IFC and
shows that 80 percent of MSMEs are excluded from the formal financial system.