T

he Central Bank of
Nigeria (CBN), last week sensitised stakeholders in Oyo State on how to access the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF).

The Deputy-Director Development Finance Department of the CNB in Abuja, Mr Musa Uji Amedu, who tutored the participants on the thrust of the fund on all the conditions therein for the fund to be accessed, said the Central Bank was encouraging eligible Nigerians to avail themselves of the opportunity to jointly grow the economy.

The Central Bank official was however quick to inform those willing to access the fund not to see it as a national cake,” saying every amount accessed should be repaid with its corresponding interest rate.

Eligible enterprises to be financed by the fund according to him, include agricultural services, schools, restaurants, artisans, cottage industry and trade and general commerce and all other agencies that can repay.

The funds, he said would be majorly channeled through Participating Financial Institutions (PFIS) like micro finance banks non-governmental organizations and other finance houses including deposit money banks.

On the benefits accruable from the venture, Amedi listed these to include, the job creation, women economic empowerment, capacity building for stakeholders, to provide cheap wholesale funds, grassroots economic development, and promote and deepen access to finance.

At the launch of the fund, the CBN had stated that it was designed to further enhance access to finance by MSMES with the following major objectives, provide wholesale financing windows for participating financial institutions.

It will improve the capacity of the PFIS to meet credit needs of MSMES, provide funds at reduced cost to PFIS, enhance access of women entrepreneurs to finance by allocating 60 per cent of the fund to them, and improve access of NGO/MFIS to finance.

The fund was said to be one of the elements in the micro finance policy of the federal government.