A recent report from the Central Bank of Nigeria (CBN) has unveiled that Micro, Small, and Medium Enterprises (MSMEs) received only 6.63 per cent of the total N10.39 trillion intervention loans disbursed by the CBN over the course of ten years. This revelation sheds light on the limited financial support directed towards MSMEs, which are critical drivers of economic growth and employment generation in Nigeria.
According to the detailed report provided by the apex bank, a total of N689 billion was allocated to the MSME sector between August 2013 and September 2023. This figure represents a relatively small portion of the overall intervention funds disbursed by the CBN during this period.
The report further highlights the MSME sector’s position as the third lowest recipient of intervention funds, trailing behind sectors like export and health, which received higher allocations. Such disparities underscore the challenges faced by MSMEs in accessing financial support necessary for their growth and sustainability.
The intervention programs designed to support MSMEs include various initiatives such as the Micro, Small and Medium Enterprises Development Fund (MSMEDF), Agri-business/SME Investment Scheme (AgSMEIS), Nigeria Youth Investment Fund (NYIF), and Tertiary Institutions Entrepreneurship Scheme (TIES), among others.
Furthermore, the report indicates that the majority of credit facilities allocated to the MSME sector have either been fully paid or are currently in ongoing payment status for the projects. This suggests that despite the limited financial support, there are positive performance indicators within the MSME sector, reflecting its resilience and potential for growth.
In discussing the impact of these intervention programs, the report underscores the significance of targeted financial support in fostering entrepreneurship and job creation within the MSME sector. However, it also acknowledges the challenges and gaps that persist in terms of access to funding and supportive policies.
The report provides insights into the top beneficiaries of the loan programs for the MSME sector, highlighting key initiatives such as the Micro, Small and Medium Enterprises Development Fund (MSMEDF), which aimed to bolster MSMEs in sectors like manufacturing, pharmaceuticals, and cement companies.
Similarly, the Agri-business/SME Investment Scheme (AgSMEIS) emerged as a significant program, providing funding to sectors including manufacturing, fashion, agriculture, and hospitality. Other notable initiatives include the Targeted Credit Facility (TCF), Creative Industry Financing Initiative (CIFI), and the Nigeria Youth Investment Fund (NYIF).
Despite the positive aspects, the report also sheds light on the challenges faced by MSMEs in Nigeria, including limited access to funding, high-interest rates, and infrastructural deficits, particularly in unreliable power supply. These challenges pose significant barriers to the growth and development of MSMEs, hindering their ability to contribute fully to the economy.
