…With FCT, Kaduna and Oyo States to serve as pilot
2020 looks to be a good year after all for MSMEs in the country despite the challenges the economy has suffered as a result of the corona virus pandemic and other internal shocks and disruptions. This is coming on the back of the collaboration between SMEDAN and BOA to provide matching fund for MSEs. The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), in conjunction with the Bank of Agriculture (BOA) have concluded plans to jointly provide intervention, matching fund for MSEs, with a view to boosting the output of micro and small enterprises (MSEs) across Nigeria. The Federal Capital Territory (FCT), Kaduna and Oyo States will serve as pilot states.
According to our source, additional three states will be added each year until the entire 36 states are covered depending on available funds. The matching fund will be counter part contributions from both BOA and SMEDAN and managed by Bank of Agriculture. However, SMEDAN being a non – profit organisation will not expect returns from its part of the fund.
The initiative, which commenced on 15th December 2020, has a tri-factor of enhancing enterprise output, competitiveness, and creation of jobs, and to deliver credit to the sub-sector through the BOA. Alongside the free registration through SMEDAN, beneficiaries can apply for loans within the range of N1.2 million to N5 million on “business-friendly terms”, with a waiver of collateral.
According to the Director General/Chief Executive Officer of SMEDAN, Dr Dikko Umaru Radda, those who can benefit from this initiative include labor-intensive micro and/or small enterprises (MSEs) operating within the sector. In addition, candidates must have “innovative value-added products” that are establishing themselves in the Nigerian market but require funding to increase market.
SMEDAN has a mandate to the MSMEs sub-sector to stimulate, monitor and coordinate its development and modernisation through policies, programmes and other support services; while the BOA is established to stimulate agriculture, improve lives, and grow communities in Nigeria. It also provides agricultural credit facilities, non-agricultural micro credit, savings mobilization, and capacity development through co-operative development of agricultural information system, and provision of technical support and financial advisory services across the value chain of the sector.