Home Business Today Entrepreneur CBN’s N220 Billion MSME Development Fund- How to Access it.

CBN’s N220 Billion MSME Development Fund- How to Access it.

150
35
Nigerian Naira

Finally, the Central Bank of Nigeria has published the procedure for accessing the fund. Find text below.

1.0 Is your business in any of the following areas?
. Agriculture
. Manufacturing
. Cottage Industries
. Artisanship
. Services
. Trade and general Commerce
. Renewable energy/energy efficient products and technologies
. Other income generating projects as may be prescribed by the CBN

2.0 If “Yes”….
2.1 Prepare your business plan or statement on how much you want for your business
2.2. You can get loan of up to:
(a) N500,000.00 for your micro-business; and
(b). N50 million for Small & Medium Enterprise (SME)

2.3. Go to your bank or any of the following institutions to access the Fund:
. Microfinance Banks
. Commercial Banks
. Cooperatives
. Finance Companies
. NGO-Microfinance Institutions
. Development Finance Institutions, i.e. Bank of Industry and Bank of Agriculture

3.0. Tell your bank how much you need

4.0. Your bank will discuss your request and provide you the money
4.1 The maximum interest rate of 9.0% p.a (charges inclusive) is applicable to all loans

5.0. Period for the repayment of the loan:
a) For micro business, it is a maximum of one year
b). For small and medium enterprises, it is a maximum of three years

NOTE: 60% of the Fund is reserved for enterprises owned by women; 2% for persons living with disability and 10% for start-up businesses.

There have been reports of bank branches claiming ignorance of the fund. In that eventuality or for more information, please send e-mail:
msmedf@cbn.gov.ng

-Source: CENBANK

35 COMMENTS

  1. please am seriously interested in acquiring some funds to start up my palm oil/palm kernel oil processing plant in Ankpa Kogi state.
    since u you-win may likely no longer hold, will need updates and possible info’s on how to secure a loan to enable me reach my goal n succeed in this business. thank u

  2. I am very interested. My SME is in the area of services – Legal Services. Ten Million Naira soft loan will enable me equip my Law Office with the appropriate infrastructure for the level we have attained.

  3. AJIMARE GLOBAl CONCEPT LTD. Are into Building, civil Engineering & general contractor. Also intoo Printing, Agro e.t.c. Thanks.

    • Thank you Alhadeen, Bizintelng (Business Intelligence) is a Business a Business Analysis, Performance, Report and News Website.
      It is your One-stop place for all your Business News and Market Report, oil and gas analysis, stock market Report, Agro Business and A place to provide you with information that will move your business forward.

      If you need to consult us on your business and help, simply let us know and full details of what you want.

  4. I must say that we have never been this disappointed, maybe because for the first time we believed the system was FINALLY going to work favorably for MSME. Another reason we had hope was because it was simply a copied programme – embarked by the Bangadesh bank (the equivalent of the CBN). It worked & is still working there so I thought – why not here.

    For purpose of establishing some background, I run a renewable power solutions outfit and we deploy Solar, Wind Power Solutions, Solar Thermal Technology, Energy Efficiency & Conservation, Retrofitting etc. Our management team also has a strong banking / financial background. All of this thrown in the mix meant the potential for being able to access funds seemed high.

    So we approached our main banker (one of the biggest banks in Nigeria) barely 2 weeks after the advert of the funds was placed in the newspapers. Our account officer had heard of the funds but had not got any word from the bank’s management.

    About a week later we proactively went back with a business proposal / plan. Our account officer at least took time to go through our abridge plan, consulted with the update they had received from their management and said ” to be able to access this fund you have to provide collateral which can be legal mortgage or Cash backed”. Now you can imagine my shock! A funds meant as an intervention fund for MSMEs must be collateralised by legal mortgage or cashed backed! I asked, so what is the difference with approaching a commercial bank but for the interest rate & of what use is a fund with low interest rate if the conditions to accessing it is stringent. There was even no talk of the business proposal, its potentials or financials.

    Upon leaving our banker and feeling deflated we sent a mail to the msmedf@cbn.gov.ng laying our complaint and we did not get even an acknowledgement response.

    We still did not want to be discouraged. We went ahead to visit the BOI’s (who is supposed to also be a channel for the disbursement) field office.

    The initial part of the discussion went well with us introducing our company and our products offering and strategies so far. However the discussion came to an abrupt stop the moment we mentioned the said CBN N220b. in fact the staff seem exasperated because of the number of MSMEs who have come to make enquiries and this was because they had no response to give. In fact the staff was short of saying that they (CBN) rushed to place adverts on the Papers when they seemed to have not actually started.

    I was however shocked to see on the news 10/04/2015 that the CBN had disbursed 20% of the funds.

    Now my question is to whom? How many MSMEs can meet the borrowing criteria of commercial banks (because they determine the conditions for accessing the loan). The implication is that the funds may not end up going to businesses for which it was setup nullifying the initial aim of the funds.

    Don’t get me wrong, all borrowing must be secured somewhat but applying the standard commercial bank securitization system will be a mismatch for the purpose of the funds. If the CBN is copying what another developing country has proposed they should also copy its implementation.

    For us MSMEs we seem to still be “on our own”.

    • Your story is really touching, but there are lists of banks assigned to disburse this funds.
      Hope you have gone through the Lists.. we published the list on our website and we will post it on our FB page, But we will make contact with the appropriate authority that is CBN and when we get feedback we will publish their feedback here, that we will do as soon as possible.. Thank you for this comment and it will provide a basis for us to work on and know what the challenge is.
      Regards,
      Bizintelng

  5. Please come to our rescue, that is my company name we have been to all this banks listed above but all they were saying was that they don’t give out loan. We have even in micro finance bank, are you saying we should go back and ask again? Please my company really need this loan please help.

    • Yes, you should check back.. we will have published the List of banks assigned to disburse the loans.
      If you still didnt get any response from them, kindly send us a message or send your comment via our blog and we will respond..

  6. Sincerety of purpose should be the key words…..Nigerians need this loan if right things are done. Well thank God for the wind of change in Nigeria that is divinely orchestrated. God bless Nigeria.

  7. I got this additional information on the modalities for accessing the CBN N220 MSME Development Fund to the effect that I can approach my commercial bank and apply.

    I need to get a further clarification on two fronts:

    1. I belong to a cooperative society of 10 persons in Kano; can we apply as a cooperative society through a commercial bank where we operate our cooperative account? If yes, do we need to provide a collateral of any kind?

    2. I run a firm, Creslead Nigeria Enterprises also in Kano, which had in 2012, received a N3 million grant from the YouWiN Business Plan Competition organized by the Federal Ministry of Finance. I need additional funding to expand my business; can I apply in the name of the firm from this fund? And again, will I be required to provide any form of security for the N5 million that I now require? I have an existing corporate account with GTbank; can I approach this bank for this facility?

    I shall be glad to receive further information in this respect as I would like to access funds for the expansion of my business as soon as possible.

  8. admin;
    please,how do we go about it locally,also am into catering services.At what interest rate and bank .
    Thanks

    • Pls check the link below the post to read more, if you still have more question after reading through, kindly contact us

    • Admin. Please kindly remove the enterpriseboom link in the above comment I made earlier. as the link will soon harm your SEO because the owner has sold it off.

    • Mr Mike, Kindly read through the listed eligible businesses for the loan and apply,
      You can find it at the bottom of this post and click the CENBANK link and see the procedure.
      If you still need more information, kindly let us know.
      Thank you

  9. Sir,
    I am into buying and selling of both men and ladies wears in Bida, Niger State and it is of my interest to start going to China to buy goods.
    My questions is can i approach any of the list banks and a loan will be given to me? Also the interest of 9% is it monthly or yearly and what is the mode of repayment.?
    How long would it take to get the loan from the bank and what are the thing is expected of me to take to the bank.
    Thank you.

    • Thank you Mr DAFE,
      for the procedure and what is needed for the Loan follow the link at the end of this post you just read, the link is marked “CENBANK”.

      After going through the link you can then see clearly if you are eligible or not.
      Regards.

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  11. Thanx For Keeping Us Informed, I Have A Provision Store In Dutse Jigawa State And I Want To Upgrade To A Dealer, Since This Loan Helps Women, Do I Need A Proposal To Access This loan? What Other Things Are Require For Me To Be Eligible?

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