Apply for CBN Micro, Small and Medium Enterprises Development Fund (MSMEDF) 2022, N220 billion
CBN launches MSME Development Fund with N220 billion share capital. The fund was set up to make significant contributions to the economy of the Micro, Small and Medium Enterprises (MSME) sub-sector and to recognize the existing large financial gap.
Ten (10) percent of the MSMEDF – MSME Development Fund is dedicated to development goals such as grants, capacity building and administrative spending, while ninety (90) percent of the commercial part is dedicated to partner financial institutions (PFIs) at a rate of 2% for lending to MSMEs. Will be published. 9% per year at the maximum interest rate.
Eligible activities for financial assistance include agricultural value chain, services, cottage industries, artisans, trade and commerce and any income generating business as may be specified by CBN from time to time.
Objectives of the MSMEDF – MSME Development Fund
The broad purpose of the fund is to provide low interest funds through PFIs to the MSME sub-sector of the Nigerian economy:
- Enhance access by MSMEs to financial services;
- Increase productivity and output of microenterprises;
- Increase employment and create wealth; and
- Engender inclusive growth
Benefits of the MSMEDF to Some Stakeholders
The Developmental Components will be utilized for capacity building of staff of PFIs, research and provision of other financial services infrastructure
Long term single digit loans at 9% p.a. This has resulted in reduced cost of borrowing which will impact positively on the earnings of the MSMEs
The Fund will provide liquidity for the sub-sector and result in general improvement of the financial system stability
Eligible Activities under the MSMEDF
In line with the provisions of the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, enterprises to be funded under the Scheme include:
- Micro Enterprises
- Small and Medium Enterprises (SMEs)
The following are eligible activities under the Fund:
- Agricultural value chain activities
- Cottage Industries
- Renewable energy/energy efficient product and technologies
- Trade and general commerce
Other economic activity as may be prescribed by the CBN
Note: Only 10% of the Commercial component of the Fund shall be channeled to trade and commerce.