CBN Eases Collateral Terms For SME Loan

The N220 billion Micro Small and Medium Enterprises, MSMEs, fund being packaged by the Central Bank of Nigeria, CBN, would be given to entrepreneurs without the conventional collaterals to make it easier for them to access capital for their businesses.
CBN’s Director of Development Finance, Mr. Paul Eluhaiwe, said this at the end of the MSME Financing Conference and D-8 workshop in Abuja, weekend.
He said that entrepreneurs would be able to use movable collaterals to secure credits from financial institutions from next year.
According to him, the necessary approval of management of CBN had been secured and “we will ensure that collateral registry are movable collateral and we would be able to use it beginning from next year in this country.”
He added that CBN wanted a situation where MSMEs would “be able to use movable collateral, and we are working with the International Finance Corporation, IFC, on this development.
“If this is done, operators will be able to operate because there would be funds and capacities would be built to create sustainability in the sector.
“Entrepreneurs themselves, who are supposed to benefit, with movable collateral will have access to more financial services.”
Most banks are not ready to support SMEs with facilities because they feel they do not have the collaterals and banks depend only on fixed collaterals in this country.”
Mr. Eluhaiwe disclosed that the N220 billion MSME development fund would be available for disbursement as from next year, a situation he said would boost the MSMEs in an unprecedented manner.
“That is what we are concentrating on. We know that before December, we would have worked out all the issues to make it work for us as a country because we know that it is required for us to move forward”; he said.
Between now and next year, the director said the apex bank would concentrate efforts on “building capacity, providing resources, things will work in that sector in addition to the regulatory framework.”
Under the proposed fund, grants would be given to Microfiance banks to strengthen their operations; the credit component, the guarantee component and the refinancing component for the sector to work.
Consequently, microfinance banks in the country are being evaluated and those rated to have performed creditably well would benefit from the fund. 32 of such microfinance banks have already been selected.

Comments

Post a Comment

Popular posts from this blog

Dillish is the Winner of Big brother Africa 2013

Image
After expressing her desires to be the first woman to win the Big Brother grand prize since Zambia's Cherise did so seven seasons ago, Dillish has done it for all of Africa's women! The gorgeous Namibian started her Chase race as the proverbial underdog and was labeled everything from lazy to a pampered princess. As the Chase rolled on however, Dillish quickly emerged as a very strong contender for the Chase title and won her fellow Housemates and Africa over, with her quirky, accented alter ego, aptly titled Princess Dillish. The Namibian made sure to stay away from trouble and coasted through the Chase by taking her place behind the scenes. While her fellow Housemates got themselves into hot water, fighting and gossiping their way to what they hoped was the top of the mountain, Dillish remained grounded and maintained cordial relations with her fellow Housemates. The only time the Namibian got herself in a spot of trouble was when she and her good friend,
Read more

Clashes between Nigerian army and Boko Haram kill 18

Image
Maiduguri - Boko Haram, which wants to impose Islamic law in Nigeria's north, and other spin-off Islamist groups have become the biggest threat to stability in Africa's top oil exporter.   Suspected members of Boko Haram killed 11 people in an attack on Damboa town in Borno state on Thursday, shooting at soldiers, burning shops and killing civilians, a military source said, asking not to be named because he was not authorized to give official statements. "More troops have been dispatched to the area to confront the insurgents. They sneaked away towards the bush leading to parts of Yobe and Gombe States," the source said. Around 50 gunmen in cars and motorbikes stormed the rural town, forcing hundreds of residents to flee to hide in nearby farms, locals said. In neighboring Gombe state, police officers killed seven members of Boko Haram in a two-hour gun fight in the early hours of Friday, Gombe Police Spokesman Fwaje Atajiri told reporters.
Read more

Spiritualist, car dealer defraud FCT minister

Image
The State Security Service has arrested a car dealer, Ibrahim Takat, for allegedly conspiring with a spiritualist, Nakasi Ahmadu, "to defraud the Federal Capital Territory Minister, Senator Bala Mohammed, of N3m." The duo were said to have cloned the minister's telephone number which they used to send a text message to Mohammed's Chief of Staff to deposit N3m in a Diamond Bank account. The money was withdrawn the same day. Parading Takat in Abuja on Friday, the Director of Operations, SSS, FCT Command, Ibrahim Halilu, explained that the car dealer used the minister's cloned number to obtain the money on August 8, 2013 at Asokoro, Abuja. He said, "Takat used the cloned phone number to give instruction to the Chief of Staff to the minister via text message to deposit N3m into his account number 0011141544 with Diamond Bank Plc. The amount was withdrawn the same day by the suspect." But Takat claimed he knew nothing about the all
Read more