Nigeria: 'N220 Billion MSMEs Fund Holds Potential for Economy's Growth'

Lagos — The founder and pioneer Chief Executive Officer of LAPO Microfinance Bank, Dr. Godwin Ehigiamusoe, has said the Central Bank of Nigeria's (CBN's) N220 billion Micro Small and Medium Enterprise Fund has the capacity to stimulate the economy.

Ehigiamusoe, in an exclusive interview with Daily Trust, spoke against the backdrop of the magnitude of intervention that would be a desirable intervention to energise the MSMEs sector in a bid to drive growth from bottom up.

He said: "the N220bn MSMEs development fund to my own understanding is still running, obviously there could be some challenges. What I will, therefore, suggest is that we can go back to that fund. That fund has the capacity and guidelines that can sufficiently stimulate the liquidity in that segment of the economy.

The banker believes that diligent disbursement of the fund will play a vital role in stimulating MSMEs' growth nationwide.

Under the fund, loans are offered at 9 percent per annum with a maximum tenor ceiling of 5 years and minimum tenor of 1 year, Single Obligor limit of N50 million and a minimum limit of N5 million. Similarly, 60 percent of the fund was meant for businesses where women own majority interest while 10 percent of the fund accessed by banks is for start-ups.

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