To boost production, create jobs, reduce poverty and ensure inclusive economic growth and development in the country, the Central Bank of Nigeria, CBN, has signed a Memorandum of Understanding, MoU with the 36 State governments on “MSMEs Development Fund’’.
Micro, Small and Medium Enterprises, MSMEs, the CBN says can drive Nigeria’s economy if adequately funded.
The CBN governor, Godwin Emefiele, says that the CBN initiated the funds as an innovative way of improving access to finances at single digit interest rates by MSMEs in order to unlock their potentials and unleash them for growth.
He said the state governments would be able to access up to N2 billion each for on-lending to eligible beneficiaries through participating financial institutions in their states.
The CBN, Mr. Emefiele assured, would ensure that the funds got to people at the bottom of the country’s economic and social pyramid at a maximum of nine per cent interest rate.
He also said 60 per cent of the funds would be given to women, who often turn out better yields than their male counterparts.
According to him, the CBN would be committing considerable human and material resources to monitoring the disbursement and utilisation of the funds in a robust and verifiable manner.
“Participating financial institutions will be required to submit periodic returns on disbursement as well as analysis of the social impact of these funds on our people’’ NAN quoted him.
He implored the state governors to assist the CBN to achieve its goals by ensuring that the funds were deployed in an efficient manner to beneficiaries.
Akwa Ibom State Governor, Godswill Akpabio, who spoke on behalf of the other governors, commended the CBN for initiating policies that bordered on poverty reduction in the country.
Mr. Akpabio, however, stated that the N220 billion set aside for the initiative was relatively small, considering the size of the country, the rate of unemployment and its economic potentials.
He urged the CBN to review the procedures involved in the disbursement of the fund to enable it get to the targeted population without difficulties.
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This article was first published on 27th July 2014
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To boost production, create jobs, reduce poverty and ensure inclusive economic growth and development in the country, the Central Bank of Nigeria, CBN, has signed a Memorandum of Understanding, MoU with the 36 State governments on “MSMEs Development Fund’’.
Micro, Small and Medium Enterprises, MSMEs, the CBN says can drive Nigeria’s economy if adequately funded.
The CBN governor, Godwin Emefiele, says that the CBN initiated the funds as an innovative way of improving access to finances at single digit interest rates by MSMEs in order to unlock their potentials and unleash them for growth.
He said the state governments would be able to access up to N2 billion each for on-lending to eligible beneficiaries through participating financial institutions in their states.
The CBN, Mr. Emefiele assured, would ensure that the funds got to people at the bottom of the country’s economic and social pyramid at a maximum of nine per cent interest rate.
He also said 60 per cent of the funds would be given to women, who often turn out better yields than their male counterparts.
According to him, the CBN would be committing considerable human and material resources to monitoring the disbursement and utilisation of the funds in a robust and verifiable manner.
“Participating financial institutions will be required to submit periodic returns on disbursement as well as analysis of the social impact of these funds on our people’’ NAN quoted him.
He implored the state governors to assist the CBN to achieve its goals by ensuring that the funds were deployed in an efficient manner to beneficiaries.
Akwa Ibom State Governor, Godswill Akpabio, who spoke on behalf of the other governors, commended the CBN for initiating policies that bordered on poverty reduction in the country.
Mr. Akpabio, however, stated that the N220 billion set aside for the initiative was relatively small, considering the size of the country, the rate of unemployment and its economic potentials.
He urged the CBN to review the procedures involved in the disbursement of the fund to enable it get to the targeted population without difficulties.
