The Central Bank of Nigeria(CBN) has approved the sum of N220 billion for disbursement to operators of Small and Medium Scale Enterprises(SMEs) in Nigeria.
CBN governor, Mr. Godwin Emefiele, who announced the loan at a meeting with state governors, said the fund will ensure wealth creation and poverty reduction in the country, adding that the loan will be disbursed at single digit interest rate to Nigerians and that 60 percent of the funds will be disbursed to women.
He said that SMEs suffer funding gap of N9.6 trillion.
We gathered that the governors at the meeting were not happy with modalities for disbursing the loan. The CBN governor said the money will be disbursed through commercial banks.
Those at the meeting include governors of Akwa Ibom, Ogun and Oyo states. They called for an upward review of the loan and removal of bureaucracy in accessing the loan.
This is the type of loan we have been praying and pressing for, for a long time in this country. Let the Central Bank of Nigeria approve our proposal and release such loan through any commercial Bank of the the CBN’s choice.
The total interest on this loan including insurance cover and whatever the commercial banks would charge should all be within one digit interest rate. Factory buildings and factory machines and land agreement documents (not necessarily Certificate of Occupancy) that are to be acquired with the loan (where necessary) )and deposited with the Central Bank as accepted collateral. The category of meaningful developers and investors can not get collateral elsewhere or get any serving civil servant to stand in as their guarantors. Let the applicants get any two (2) Nigerians resident in Nigeria to be their guarantors . Give period of three to four years for refund in full. The practice of asking serving civil servant to to guarantee loan in this country or asking genuine small and medium scale investor to go an get landed properties, certificate of occupancy as collateral is just an indirect way of saying ONLY THE RICH PEOPLE OR THEIR RELATION SHOULD ACCESS OR BE GIVEN SUCH LOAN. The result of such practices in the past resulted in no development and clever transfer of public funds to private pockets of some people in privileged positions.
This condition will attract genuine youths, investors and processors, fabricators etc to come in and make proper use of the loan and refund before the agreed time.
With this condition , I want to be one of the applicants of the loan, I can assure the Central Bank that within three years of this programme, Nigeria shall become major exporter of many non-oil products in the world. About 230,000 jobs shall be created within the next three years if this method is adopted.
This is a very good development. But up till this particular moment the comercial banks are not giving. It out as per the CBN condition especially in the Northern State.