MSME
CBN increases SME intervention fund to N300 billion, disburses N149.21 billion
The CBN has announced its decision to increase the TCF for households and SMEs from N150 billion to N300 billion.
The Central Bank of Nigeria (CBN) has announced its decision to increase the Targeted Credit Facility (TCF) for households and Small and Medium Enterprises (SMEs) from N150 billion to N300 billion.
This is as the apex bank has revealed that it had disbursed a total of sum N149.21 billion to SMEs and households across the country under the TCF.
According to a report from Punch, this disclosure was made by the CBN Governor, Godwin Emefiele, at a virtual seminar organized for finance editors and correspondents in Lagos and Abuja simultaneously.
Emefiele, who was represented by the apex bank’s Deputy Governor, Corporate Services, Edward Lametek, said the CBN had set out to alleviate the plights of households and business owners who have been negatively impacted by the Covid-19 pandemic and drive economic growth during this period.
READ: CBN raises alarm over fake tweet posts on N50 billion COVID-19 fund
What the CBN Governor is saying
Emefiele in his statement said, “We initially created a N150bn Targeted Credit Facility for affected households and small and medium enterprises through the NIRSAL Microfinance Bank. Already, N149.21bn has been disbursed to 316,869 beneficiaries.
“Given the resounding success of this programme and its positive impact on output growth, we have decided to double this fund to about N300bn, in order to accommodate many more beneficiaries and boost consumer expenditure which should positively stimulate the economy.”
Emefiele stated that in line with the growing need to go digital, the application process was done online and required limited paperwork from prospective applicants.
READ: 3 bank directors resign from NESG in protest to CBN immunity letter
What you should know
- It can be recalled that in April 2020, the CBN introduced the Targeted Credit Facility (TCF) as a stimulus package to support households and micro, small and medium enterprises (MSMEs) that are affected by the coronavirus pandemic
- The TCF was designed to cushion the adverse effects of COVID-19 on households and MSMEs; support households and MSMEs whose economic activities have been significantly disrupted by the COVID-19 pandemic, and stimulate credit to MSMEs to expand their productive capacity through equipment upgrade and research and development.
Business News
TLG Capital and Fidelity Bank to invest $20 million on Nigerian SMEs
TLG Capital announced that it would be investing with Fidelity Bank Plc amount to the tune of $20 million on SMEs in Nigeria
Business
FG to set up micro, small and medium enterprises in 774 LGAs
The FG has disclosed plans to establish micro-enterprises in the 774 Local Government Areas (LGA) across the country.
The Federal Government has said that it plans to establish micro-enterprises in the 774 Local Government Areas (LGAs) across the country to help create jobs and ensure improvement in the well-being of the local populace.
This disclosure was made by the Minister of Special Duties and Inter-Governmental Affairs, Dr George Akume, at the Association of Local Governments of Nigeria (ALGON) General Assembly with the Theme: Strategic Positioning for the Future: A New Era, on Wednesday in Abuja.
Akume, who was represented by the Deputy Director, Office of the Minister, Mr Simon Tyungu, said that the establishment of the micro-enterprises was conceived to cushion the effect of the current economic situation.
READ: Why e-commerce platforms are struggling to capture Nigerian population
What the Minister for Special Duties and Inter-Governmental Affairs is saying
Akume said, “As a ministry, we have proposed the establishment of Micro, Small and Medium enterprises in the 774 local governments in Nigeria based on economic corridors. We believe that this will create jobs and ensure improvement in the well-being of the local populace.’’
Akume also applauded the role played by ALGON during the COVID-19 pandemic in bringing relief to the people at the grassroots despite their limited resources.
The Minister said, “The administration of President Muhammadu Buhari has taken some bold steps to reposition the local government administration such as granting of local government autonomy and enforcement of democratically-elected local government councils by the states.”
READ: EdTech startup Kabakoo receives funding from Zoom, launches first no-code training in Africa
“This is a clear demonstration of political will by Mr President. The COVID-19 pandemic that has ravaged the entire country in 2020 was felt more in our local communities. The leadership of ALGON contributed in no small measure, particularly on stimulus packages and advocacy, notwithstanding your financial limitations,’’ he said.
The minister said the Federal Government recognized the fact that people could be reached through the local government area councils and then put some measures in place.
Going further he said, “The Federal Government in its wisdom then realised that the local government area councils are the veritable vessels through which the dividend of democracy will reach the vulnerable indigent citizens.
“Mr President (of ALGON), I urge you to take advantage of this initiative and key into President Muhammadu Buhari’s resolve to lead 100 million Nigerians out of poverty in the next 10 years. The Federal Government is favourably disposed to attaining this developmental goal.’’
READ: FG earns N28.6 trillion from VAT, others
Speaking at the occasion, the ALGON National President, Dr Kolade Alabi, said that ALGON’s general assembly seeks devolution of powers, both financial and administrative, with concomitant fiscal devolution. He said that this is in addition to the request for complete autonomy for local government area councils for effective administration and service delivery to the people noting that such would require the review of the 1999 constitution as relates to local government administration and uniform tenure of the 4-year term for local government administration among others.
What this means
The establishment of such micro-enterprises by the Federal Government will create jobs especially among the unemployed youths and help to boost the economy. This is as the nation tries to recover from the impact of the coronavirus pandemic on the economy, businesses and households.
1 Comment