Nigeria: CBN signs €1 billion MoU to boost SMEs' access to finance

Jul 28, 2014

The Central Bank of Nigeria (CBN) has signed a Memorandum of Understanding (MoU) with the country's 36 state governors for the creation of a N220 billion (€1 billion) development fund for small and medium-sized enterprises (SMEs).

The Central Bank of Nigeria (CBN) has signed a Memorandum of Understanding (MoU) with the country's 36 state governors for the creation of a N220 billion (€1 billion) development fund for small and medium-sized enterprises (SMEs).

Governor Godwin Emefiele said the initiative was necessary to enable the federal government to bridge the socio-economic gap in the country, Vanguard reports.

He added
the scheme is expected to reduce poverty, boost economic growth and income generation, as well as job creation.

This initiative comes a week after the Bank of Industry (BoI) announced
it
is ready to review its current credit portfolio to increase access to credit for
SMEs in Nigeria.

The new Chairman of the BoI, Alhaji Abdulsamad Rabiu, said that there is a need for it to carry out an upward review of the loanable funds in a manner that would enable the sector to create more jobs and generate wealth.

Studies by the IFC show that approximately 96 per cent of Nigerian businesses are SMEs compared to 53 per cent in the US and 65 per cent in Europe. They contribute around one per cent of GDP compared to 40 per cent in Asian countries and 50 per cent in the US or Europe.ADNFCR-2976-ID-801737897-ADNFCR