N10 Trillion Is Required For Enterprises – CBN

The Central Bank of Nigeria (CBN) states that Nigeria requires about N10 trillion to effectively support the Micro, Small and Medium Enterprises. The Bank states that the N220 billion fund for enterprises which was created by Goodluck Jonathan, could be described as a drop in the ocean. Chinedu Zeph from MSME Development Finance Department said that the sub- sector required a massive financial outlay. He said:“The MSMEDF is for MSMEs in Nigeria. The IMF and McKenzie did a report that we require over N9.7tn to finance the gap in this subsector. Imagine where you have N220bn to cover for N9tn that tells you that it is just a drop in the ocean. But this is a right step in the right direction.We are hoping that when people borrow this money, they will actually pay it back. Part of the fund has been disbursed. However, this is a going concern. If the money given to people is repaid, then it will be available for others to borrow.” Zeph also noted that the primary source of finance for economic activities remained the Deposit Money Banks (DMB). He said that the inability of the DMBs to support the economy through the provision of loans made the CBN to intervene by providing different credit sources to various sectors.

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