CBN SAYS NIGERIA NEEDS N10TN TO SUPPORT MSMEs

Godwin Emefiele, CBN Governor

The Central Bank of Nigeria (CBN) has revealed that the country needs about N10tn to effectively support the Micro, Small and Medium Enterprises financially. It added that the N220bn MSME fund that was inaugurated by former President, Dr. Goodluck Jonathan, last year was just a drop in the ocean.

Tectono Business Review chatted with the Relationships Manager, MSME Development Finance Department of CBN, Mr. Chinedu Zeph. He said: “The MSMEDF is for MSMEs in Nigeria. The IMF and McKenzie did a report that we require over N9.7tn to finance the gap in this subsector. Imagine where you have N220bn to cover for N9tn that tells you that it is just a drop in the ocean. But this is a right step in the right direction. We are hoping that when people borrow this money, they will actually pay it back. Part of the fund has been disbursed. However, this is a going concern. If the money given to people is repaid, then it will be available for others to borrow. On our part, we have put a robust strategy in place and we are hoping that we will work with stakeholders and ensure that people who borrow this money actually pay back.”

Tectono Business Review asked Mr. Zeph if the apex bank would increase the amount earmarked for the MSMEs because the subsector would require more funds and he replied that the primary source of finance for economic activities remained the Deposit Money Banks (DMBs). According to him, the inability of the DMBs to support the economy through the provision of loans made the CBN to intervene by providing different credit sources to various sectors.