The Central Bank of Nigeria has said that women will be given 60 per cent of the N220bn Micro, Small and Medium Enterprises Development Fund as part of its developmental role and mandate of promoting a sound financial system.
It also said that two per cent of the wholesale component of the fund would go to economically active persons living with disabilities and 10 per cent provided for start-up businesses.
The banks said this in a circular on, “Guidelines for micro, small and medium enterprises development fund for non-interest financial institutions,” which was signed by the Director, Development Finance Department, CBN.
The circular said, “The sub-sector is characterised by huge financing gap which hinders the development of MSMEs.
“Section 6.10 of the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, stipulates that ‘a Microfinance Development Fund shall be set up, primarily to provide for the wholesale funding requirements of MFBs/MFIs’.
“To fulfil the provisions of section 4.2 (iv) of the policy, which stipulates that women’s access to financial services to increase by at least 15 per cent annually to eliminate gender disparity, 60 per cent of the Fund has been earmarked for providing financial services to women.”
It added that this informed the decision of the CBN to establish the MSMEDF, which has a take-off seed capital of N220bn.
The fund prescribes 50:50 ratio for on-financing to micro enterprises and SMEs respectively by Participating Financial Institutions.
The commercial component will constitute 90 per cent of the Fund which to be disbursed in the form of wholesale funding to the PFIs.