Nigerian Banks to inject N25 billion into SMEs annually
The fund will be raised from 5 percent of banks’ Profit After Tax (PAT) savings.The Nigeria Bankers Committee under the leadership of the Central Bank of Nigeria (CBN) governor has agreed to inject N25 billion annually to spur growth of export related Small and Medium-sized Enterprises (SMEs) in the country. Speaking at the Bankers Committee meeting in Abuja yesterday, the Director of Banking Supervision Department of the CBN, Mohammed Abdullahi made it known that N25 billion will be raised from the five percent of every bank's Profit After Tax (PAT) savings beginning with 2016 results. "The five per cent of each bank's PAT is to be kept with CBN to finance legitimate and bankable projects through equity contribution. The banks will own shares in the business concerns and provide the funding. It is not a loan. The fund injected is for a maximum of 10 years. "So, the way the funds will be disbursed will be controlled by members of the committee and entries of those to be chosen will be reviewed by the committee. Banks will share in the profit. The programme is not entirely new. It was announced in Bankers Committee's retreat of last year," he clarified. Mr Abdullahi also added that the Bankers Committee is committed to supporting the Federal Government's effort in diversifying the economy by boosting exports for the country to
earn foreign exchange and generate employment.