Business
Why CBN’s N220bn MSME Fund Remains Inaccessible
One of the vehicles involved in an accident, where a truck carrying a container fell on two cars, at Idi-Oro Bus Stop, Mushin, in Lagos, last Sunday. Photo: NAN
The N220 billion MSME
fund launched by the CBN since August 16, 2013 at Transcorp Hilton, Abuja has suffered inaccessibility due to the stringent conditions attached to the fund.
Nine months after the launching of the Central Bank of Nigeria (CBN’s) Small and Medium Enterprises (SMEs) development scheme, the fund is yet to get to the enterprises or impact on the economic system which it is meant for.
The breakdown of the fund which allotted N2 billion to the different states with the floating of microfinance banks by government agencies has even compounded the issue of delay as CBN requirement results to unending processes.
CBN conditions for the access to the loans states that the state would, “Establish a Micro Credit / MSME SPV for the purpose of coordinating applications by PFIs for the fund. The PFIs shall be solely responsible for the administration (disbursement and recovery) of the fund.
“The approved application from the state government’s SPV shall be disbursed directly to the correspondent banks of the PFIs. CBN shall notify the state government through the state – SPV of all disbursements to the PFIs.
“Provide a bank guarantee or irrevocable standing payment order (ISPO) equivalent to the amount of the requested fund.
“Sign a Memorandum of Understanding (MOU) with the CBN.
“Access the fund at nine per cent per annum on amount drawn down and disburse at not more than four per cent interest rate to the target groups.
“Pay upfront the 5% differential in interest rate to the CBN in the case of Bank Guarantee, while the PFIs shall recover the balance of 4% from the beneficiaries.
“Open a sinking Fund Account with the CBN for the Ispo proceeds and the recovery of 2% from the PFIs”, the condition said.
A financial expert, who preferred anonymity said that the condition shows that CBN is not very concerned about the development of SMEs in the country.
Kingley Nna
Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.
Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.
The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.
Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.
“I did my best and I am happy for this performance,” said Sawe.
“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”
Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.
In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.
Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.
Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.