Nigeria: Kwara state invests N2 billion to help SMEs access credit

Sep 02, 2014

Nigeria's Kwara state government has signed a two billion Nigerian naira (€9.4 million) agreement with the Central Bank of Nigeria (CBN) to help small and medium-sized enterprises (SMEs) access credit.

Nigeria's Kwara state government has signed a two billion Nigerian naira (€9.4 million) agreement with the Central Bank of Nigeria (CBN) to help small and medium-sized enterprises (SMEs) access credit.

The state has credited a loan from the central bank's 220 billion Nigerian naira micro-credit fund scheme dedicated to SMEs.

Lukman Adams, assistant to the state governor, said the credit facility would aid SMEs and boost Kwara's economic growth.

He added that the loan is guaranteed by Irrevocable Special Payment Order and would be managed by a special purpose vehicle to be established by the state government to guard against mismanagement.

The CBN signed a Memorandum of Understanding with the country's 36 state governors for the creation of the SME development fund in July 2014.

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.ADNFCR-2976-ID-801746055-ADNFCR