BY CHINYERE OBIORA, LAGOS – The Bankers’ Committee, comprising Central Bank of Nigeria (CBN)’s officials and Chief Executives of Deposit Money Banks (DMBs) has set aside N26 billion equity fund to support Small and Medium Enterprises (SMEs) in the nation’s agricultural sector.
Managing Director and Chief Executive Officer of Unity Bank, Tomi Somefun said that arrangements are on for the banks to commence the equity funds’ disbursement in the last quarter of this year.
Addressing finance correspondents after the Bankers’ Committee meeting in Lagos on Thursday, Somefun explained that the fund is far from being a loan but equity funds to support growth the agric sector.
She said the framework, which has already been developed, would soon be made public for the attention of all stakeholders in the sector, adding that the Special Export Investment Scheme also packaged by the CBN has been designed to support exporters of goods to other countries.
Somefun said exporters are expected to repatriate their proceeds under the scheme, warning that failure to abide by the existing agreement would attract sanctions, including the blacklisting of erring firms from doing business with DMBs in the country.
Also speaking at the briefing, CBN’s Director, Banking Supervision, Ahmed Abdullahi said though Nigeria is technically out of recession, economic growth is still fragile at 0.5 per cent.
According to him, there is need for hard work to deepen performance and grow the nation’s economy, adding that besides stability in the foreign exchange market, there is also moderation in the inflation rate.
In his intervention, Managing Director, Union Bank of Nigeria Plc, Emeka Emuwa said the establishment of collateral registry will help to unlock credit facility for SMEs.
He said with the processes of collateral registry on course, the arrangement would enable small businesses to access loans and grow their businesses with ease.
