SMEDAN and Jaiz Bank to Disburse N1.2bn Matching Fund for MSMEs – Check now
Dr. Olawale Fasanya, the Director General of the Small and Medium Enterprises Development Agency (SMEDAN), announced that the agency, in collaboration with JAiz Bank, will initiate the distribution of N1.2 billion in matching funds to Micro, Small, and Medium Enterprises (MSMEs) nationwide.
Check this: Shortlisted Candidates for Nigerian Navy NNBTS Batch 35 Interview 2023
Speaking at a press briefing in Abuja to mark this year’s World MSME Day, which centered around the theme “Building a stronger future together,” Fasanya revealed that SMEDAN currently holds over N600 million in matching funds, with Jaiz Bank matching it with an additional N600 million, resulting in a total of N1.2 billion. He further stated that the allocation for this year will be utilized to expand the program.
The pilot phase of the scheme has already commenced, focusing on individuals engaged in agri-business. Fasanya highlighted the involvement of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) due to the risks associated with agri-business. He explained that as funds become available, the program will be extended to encompass other sectors.
Read on app : Download our Android app for more news. (Install Now)
Fasanya emphasized that the intervention aims to provide credit as a promotional tool to enhance enterprise productivity, competitiveness, and job creation. Prospective beneficiaries will have access to loans ranging from N500,000 to N2.5 million.
Regarding the impact of subsidy removal on MSMEs, Fasanya described SMEDAN’s efforts to mitigate the effects by procuring advanced equipment/machinery through the Common Facility Center model.
Check this: Shortlisted Candidates for Nigerian Navy NNBTS Batch 35 Interview 2023
This approach aims to reduce operating costs and enable MSMEs to compete not only in terms of pricing but also in terms of quality. Several Common Facility Centers have been established in Abuja (Garment, Furniture, and Product Packaging), Katsina (Garment), Kaduna and Nnewi (Automotive Component Production), and Ikorodu (Fast-Moving Consumer Goods Packaging).
Furthermore, Fasanya revealed plans to establish the SMEDAN Investment Company to handle the agency’s operations beyond government subventions. He anticipated receiving operational licensing from the Central Bank of Nigeria soon to launch the SMEDAN Microfinance Bank, which will facilitate easier credit access for MSMEs.
Read on app : Download our Android app for more news. (Install Now)
Fasanya also mentioned that SMEDAN intends to conduct another MSME survey in the coming year, following the previous one conducted in 2020 during the COVID-19 pandemic. He added that a recent MSME competitiveness survey has been completed, and the agency will soon release the corresponding statistics.
