In just 6.63% of the N10.39 trillion loan that was disbursed to different sectors as intervention programmes, the Central Bank of Nigeria supported Micro, Small, and Medium-Sized Enterprises (MSMEs). This was done over ten years.
According to a thorough analysis by the apex bank, the industry received N689 billion in funding between August 2013 and September 2023.
The health sector only makes up 1% of all intervention programmes, and the export sector receives a pitiful 2% of the allocation, while the MSME sector comes third in terms of the least amount among the intervention programmes, according to the report.
Among the intervention schemes are the Tertiary Institutions Entrepreneurship Scheme (TIES), Nigeria Youth Investment Fund (NYIF), Agri-business/SME Investment Scheme (AgSMEIS), Micro, Small, and Medium Enterprises Development Fund (MSMEDF), and others.
Positive performance indicators within the sector are suggested by the research, which also revealed that the bulk of credit facilities given to the sector have either been fully paid or are now in continuous payment status for the projects.
The top five beneficiaries of loans from MSME sector credit programmes
Key participants in the MSME sector were the target of at least eight lending programmes, according to data from the Central Bank of Nigeria (CBN). The programmes are listed below:
Micro, Small and Medium Enterprises Development Fund (MSMEDF): The Central Bank of Nigeria (CBN) provided the data, which indicates that the CBN, in collaboration with Private Finance Initiatives (PFI), funded these loans to support MSMEs in industries such as manufacturing, pharmaceuticals, and cement.
Agri-business/SME Investment Scheme (AgSMEIS): The CBN and DMBs’ yearly 5% PAT contribution paid for the AgSMEIS loan. The industries that stand to gain the most are manufacturing, fashion, agriculture, and hospitality.
Targeted Credit Facility (TCF): The CBN funded the Targeted Credit Facility (TCF) as part of a stimulus package to lessen the impact of the COVID-19 pandemic on SMEs and households.
Creative Industry Financing Initiative (CIFI): A credit programme called the Creative Industry Financing Initiative (CIFI) is aimed at the nation’s creative sector. The CBN disbursed the loans, which were distributed through private finance initiatives (PFI) to enhance investors’ and entrepreneurs’ access to affordable financing in Nigeria’s IT and creative industries.
Nigeria Youth Investment Fund (NYIF): The Nigeria Youth Investment Fund (NYIF) was among the principal recipients of the CBN’s intervention initiatives. The credit facility was provided, according to the report, to address the issue of youth unemployment in Nigeria by providing funding to young people and youth-owned businesses. The effort contributed to the creation of 11,106 direct and indirect jobs across the six geopolitical zones, according to the report.
