How to apply for CBN Micro, Small and Medium Enterprises Development Fund (MSMEDF) 2022

Apply for CBN Micro, Small and Medium Enterprises Development Fund (MSMEDF) 2022 below.

IDOMA VOICE reports that the CBN has launched the MSME Development Fund with a share capital of N220 billion. The Fund was established in recognition of the significant contributions of the Micro, Small and Medium Enterprises (MSME) sub-sector to the economy and the existing huge financing gap.

Ten (10) percent of the Fund has been devoted to developmental objectives such as grants, capacity building and administrative costs while ninety (90) per cent commercial component will be released to Participating Financial Institutions(PFIs) at 2% for on-lending to MSMEs at a maximum interest rate of 9% per annum.

The broad objective of the Fund is to channel low-interest funds to the MSME sub-sector of the Nigerian economy through PFIs to:

• Enhance access by MSMEs to financial services;
• Increase productivity and output of microenterprises;
• Increase employment and create wealth; and
• Engender inclusive growth

Benefits of the MSMEDF to Some Stakeholders

• PFIs
  The Developmental Components will be utilized for capacity building of staff of PFIs, research and provision of other financial services infrastructure
• MSMEs
  Long term single digit loans at 9% p.a. This has resulted in reduced cost of borrowing which will impact positively on the earnings of the MSMEs
• Microfinance Sub-sector
  The Fund will provide liquidity for the sub-sector and result in general improvement of the financial system stability
• General Public
  Job creation

Eligible Activities under the MSMEDF

In line with the provisions of the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, enterprises to be funded under the Scheme include:

2. Small and Medium Enterprises (SMEs)

The following are eligible activities under the Fund:
Microenterprises

• Agricultural value chain activities
• Cottage Industries
• Artisans
• Services
• Renewable energy/energy efficient product and technologies
• Trade and general commerce
• Other economic activity as may be prescribed by the CBN

Note: Only 10% of the Commercial component of the Fund shall be channeled to trade and commerce.

CBN Micro, Small and Medium Enterprises Development Fund (MSMEDF) 2022