The Central Bank of Nigeria has unveiled guidelines through it’s website for Agribusiness, Small-scale and Medium Enterprise Investment Schemes (AGSMEIS) and Micro Small and Medium Enterprise Development Fund (MSMEDF).
The CBN will create a fund known as AGSMEIS Non-Intrest Fund which will be dedicated and domiciled in the Apex bank, 5% of Profit After Tax (PAT) will be set aside as annual contribution to the fund.
Agricultural value chains, inputs supply, logistics, mining, petrochemical, mining, ICT, marketing and creative industry will benefit from the scheme.
Criteria to Access the Fund
The application of the fund shall be categorized into 3 components namely : debt, equity and developmental components.
The debt component shall constitute 50% of the fund which shall be disbursed to eligible businesses Non-Intrest Deposit Money Banks.
Access shall be registered under National Collateral Registry (NCR).
Financing limits ₦10,000,000
Mark up: 5% per annum
Tenure : Up to 7 years depending on the nature of the project
Moratorium : 18 months for principal and 6 months on the mark up.
– Duly completed application
– Bank Verification Number BVN
– Certificate of training from Enterpreneurship Development Institutions or evidence of membership of organized private sector associations.
– Letter of introduction from any of the following : Clergy, village head, district head, traditional ruler, senior civil servants (for individuals or microenterprises only).
– Evidence of registration of business name, certificate of incorporation, and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).
The Scheme is aimed at supporting businesses and households that has been impacted negatively by COVID19 pandemic. It will also be for start ups, business expansions, revival of ailing companies and shall be in compliance with provisions of BOFIA as amended and the principles underpinning operations of NIFIs.
- The specific objectives of MSMEDF is to engage 37,000 Nigerian youths in agricultural production between now and 2023 to reduce unemployment, increase productivity and output of microenterprises, food security and economic diversification