Abuja- The Federal Government has earmarked N4.5 billion of the N220 billion Small and Medium Enterprises (MSMEs) fund for Disabled Entrepreneurs in the country.
This was disclosed by the President of Persons with Disabilities and Executive Director of the Disabilities Leadership Initiative, Mr Adeboye Abioye, at the end of the second National Council on Small and Medium Enterprises meeting.
The meeting was chaired by Vice-President Namadi Sambo.
“The Council also took into considerations that persons with disabilities were a critical factor in the scheme of things especially with regards to the MSME funds and so two per cent of the funds, about N4.5 billion, has been set aside to be accessed by entrepreneurs with disabilities.
“And what we have also agreed upon is to engage people with disabilities beyond the charity model to be able to engage their values and to see how they can also contribute to economic development in Nigeria.
“This is the first time and we will like to express our sincere gratitude to Mr. President for creating this fund for persons with disabilities and engaging the challenge of this particular group.”
The Minister of Trade and Investment, Olusegun Aganga and the Minister of National Planning, Sulaiman Abubakar also announced some reductions in collateral criteria and others to boost access to the fund.
“At the last meeting a sub-committee was set up to look at the funds, the conditions that are required or the criteria you have to meet to access the fund.
“That committee was chaired by the Minister of National Planning. His report was presented to council today and we had the privilege of the CBN governor react to the recommendations. And based on the comments of the CBN governor the council took certain decisions.
“The first is that access to collateral requirements which was initially 75 per cent which made it difficult for some commercial banks to be able to access has been reduced to 50 per cent.
“All inclusive interest rate must not exceed nine per cent. That has always been the operative of the CBN and we have stuck to that.
“However, the CBN is disbursing to these banks and the Financial Institutions and others at 2 per cent from the original interate rate of 3 per cent.”
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According to him, Council also deliberated on how to ensure sustainable funding across the board for micro finance institutions.
In his contribution, the Minister of National Planning, Dr Abubakar Suleiman, disclosed that the council approved that the collateral requirements of 50 per cent of MFB be progressively reduced by period of six to nine based on the ratings of the Micro Finance Banks (MFBs).
“The other ones in long terms MFB should be rated by independent rating agency to such that access to MSME funds will be based on their rating.’’
According to the Minister, the council approved that special focus be given to the banks with the strongest infrastructure and capacity for lending to the MSME sub-sector in the CBN strategy.
He said it also approved that the loan tenure for micro loans across agriculture value chain be determined on ‘a case by case basis’ based on the gestation period.
He said that the Council also approved the interest rate for the MSME fund to be reduced to two per cent.
“Council also agreed and approved that SMEDAN as an apex body for coordinating and regulating enterprising activities in the country and the National Planning Commission, the agency for coordinating all monitored and evaluation activities of agencies in the country, in partnership with Monitoring Unit of CBN, should monitor and evaluate all process for the MSMEs
“Council also approved that 70 per cent of the MSME should be disbursed by Development Finance Institutions (DFIs) and micro finance banks, while 30 per cent should be disbursed by the commercial banks. And that at least 40 per cent of the entire fund should be disbursed to mirco enterprises.
“It was also approved in council, that SMEDAN identifies the key women MSMEs organisation’s in the public and private sector.
“Council also approved that the CBN should engage the National orientation agency and SMEDAN to assist in disseminating information on MSMEDF – Micro Small and Medium Enterprises Development Fund to all states and local governments,” he stated
The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefuele, said that the CBN was committed to disbursing the N220 billion MSMEs facility to all economic sectors in the country.
While stressing that the disbursement process was already ongoing, he urged more Nigerians to take advantage of the facility.(NAN)