It is now easy to get CBN funds for SMEs in Nigeria. The Central Bank of Nigeria (CBN), which is the apex and regulatory financial institution now gives soft loans to SMEs in the country. Currently, small and medium scale enterprises in Nigeria could enjoy bigger access to public funds through an instrument of the federal government via the CBN. Therefore, this article is about how to successfully secure CBN funds for SMEs in Nigeria.
Are you an established entrepreneur or up-coming business owner. Maybe you are still at start-up level in Nigeria and looking for a way to fund your business. Similarly, you may be engaged in single or multi-sectoral manufacturing or value chain build-up. Is your business technology-related or involves manufacturing or material processing? Are you looking for ways to finance your business in the most low-cost manner? The federal government of Nigeria through its apex bank is at it again. This article is about how to get CBN funds for SMEs in Nigeria, through EDIs such as NBTI and SMEDAN. Also, the information in this post are officially verified.
The Central Bank of Nigeria (CBN), which is the apex bank of the Federal Government has introduced a funding support programme for MSMEs. This funding scheme is targeted at Micro, Small and Medium Enterprises. It is however, known as the Agricultural Small and Medium Enterprises Investment Scheme (AGSMEIS). Furthermore, there are conditions for benefiting from the AGSMEIS fund from the CBN.
Who can Apply for the CBN MSMEs Fund
Existing and aspiring entrepreneurs can access up to Ten Million Naira (N10,000,000) at 5% per annum for up to 7 years repayment from Central Bank of Nigeria in the AGSMEIS program, designed to help MSMEs in the following sectors:
- Agricultural businesses
- Education
- Health
- Services (Hospitality, Restaurants, Catering, Services, etc)
- Information and Communication Technology (ICT)
- Manufacturing/Production
- Mining
- Creative Industry (Fashion, Design, Crafts, Entertainment, etc)
- Petrochemicals.
How to Qualify To Get the CBN SME Fund
To qualify to access this fund, you have to be trained by an Enterprise Development Institution (EDI) in Nigeria. Interestingly, the two major EDIs in Nigeria among others are;
- Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)
- National Board for Technology Incubation (NBTI).
Upon concluding the training however, your loan application and other details are forwarded to CBN by the EDI. Furthermore, these Entrepreneurs Development Institutions follow up the progress of your CBN loan application to ensure smooth procession and approval.
SMEDAN Training for the CBN MSME Fund
As the Lead Entrepreneurship Training Institution in Nigeria, the Small and Medium Enterprises Development Agency of Nigeria SMEDAN is conducting training for applicants of the program. You can also contact the National Board for Technology Incubation (NBTI) or any of their Technology Incubation Centres (TIC) nationwide for in-depth guild on how to get the CBN fund for SMEs in Nigeria.
The Technology Incubation Centers (TIC) As Agents of SME Development
The Technology Incubation Centres simply called TICs, are the state presence of the National Board for Technology Incubation (NBTI). Most noteworthy, the NBTI is a parastatal set up under the Federal ministry of Science and Technology. Interestingly, the TICs are the main drivers of the Federal Government’s Technology Incubation Programme (TIP). In doing this, the centres use its resources to nurture and commercialize research and Development (R & D) start-ups. Consequently, Nigerian young entrepreneurs now have a platform to get discovered and incubated for proper standardization of their innovations, while growing them into profitable commercial ventures.
You may be interested to read up how to develop your tech-driven SME in Nigeria through the NBTI
The TICs in Nigeria are the appropriate government machinery that convey the knowledge and technology know-how to young start-ups. They have the mandate to nurture entrepreneurs on the best way to develop technology-driven SMEs in this age of fast growing global economies.
Consequently, this technology incubation not only promotes and encourages entrepreneurship spirit They also enhance manufacturing, commercialize research and development in science and technology-related businesses. Furthermore, TICs create more direct and indirect jobs and as a result, generate wealth while eradicating poverty.
In Summary
The main purpose of the CBN funding for SMEs in Nigeria is to create easier and affordable sources of finance for young businesses in the country. Similarly, the Federal Government of Nigeria wants to drive more entrepreneurs’ engagement towards assessing single digit loans for speedy business development. Therefore, the NBTI and SMEDAN are jointly helping CBN in building the next generation of Entrepreneurs, One at a time.
