Micro, Small and Medium Enterprises Development Fund (MSMEDF)

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Introduction

The MSMEDF was established on August 15, 2013 in recognition of the significant contributions of the Micro, Small and Medium Enterprises (MSME) sub-sector to the economy. The Fund prescribes 50:50 ratio for on-lending to micro enterprises and SMEs respectively by Participating Financial Institutions (PFIs).

The commercial component constitutes 90% of the Fund which is disbursed in the form of Wholesale Funding in the ratio of 60% Women and 40% to others. In addition, 2% of the wholesale component of the Fund is earmarked for economically active Persons with disabilities (PWD) and 10% earmarked for start-up businesses. 10% of the total Fund shall be for Development through Grants targeted at the general development and capacity building of the MSME sub-sector.

Objectives

• Enhance access to finance by MSMEs
• Increase productivity and output of MSMEs
• Create jobs
• Engender inclusive growth, particularly among the youth, women and persons with disabilities (PWD)

Management and Administration of the Fund

The Fund is managed by the CBN while eligible PFIs include all Microfinance Banks, Non-Governmental Organizations-Microfinance Institutions (NGO-MFIs), Financial Cooperatives Finance Companies, Development Finance Institutions and Deposit Money Banks. The Bank of Industry (BoI) and Deposit Money Banks (DMBs) shall participate only under the SMEs window.

How to Apply

• The borrowers shall apply to the nominated PFIs for a facility.
• The PFIs shall appraise the applications for economic and financial viability before sending eligible applications to the CBN
• CBN shall approve and disburse funds directly to the PFIs’ correspondent bank accounts on behalf of successful applicants

FAQs on MSMEDF

• How many percentages of MSMEDF is dedicated to People with Disabilities (PWDs)? 2%

• What year was the MSMEDF launched? 2013

• Who recommends the reviewed applications? The Head of Office

• All undisbursed funds or discontinued facilities should be reported and repaid to the CBN within?    5 working days