The Central Bank of Nigeria (CBN) has unveiled plans to draft a new framework on credit to Small and Medium Enterprises (SMEs).
The purpose of the initiative is to improve credit to the critical sub sector of the economy.
Giving the hint on the monetary policy initiative at a strategy meeting with some Development Finance Institutions (DFIs) and other stakeholders on enhancing access to credit to SMEs in the country the Governor of the bank, Mr. Godwin Emefiele, expressed optimism that the efforts would see more of government intervention in the sector with the attendant implications for job creation for the youths the country.
Emefiele, who pointed out noted that the meeting with the DFIs was consequent upon the inability of lenders to make access to credit a priority, expressed the monetary authorities concern that the citizens were yet to feel the impact of the country’s exit from recession, noticeable in the lack of appreciable growth indices
Expatiating further on the planned credit framework for SMEs, the seasoned banker hinted that President Muhammadu Buhari had mandated agencies to come up with programmes that would be beneficial to the country and its citizenry.
According to him, in order to achieve this such programmes would be such that would be national in their thrusts in order to enable SMEs have access to micro funds required to facilitate their sustainable growth and improved contributions to the nation’s Gross Domestic Product (GDP).
Some speakers at the forum spoke on their efforts aimed at finding lasting solution to the inability of the deposit money banks (DMBs) to bridge the credit gap in the SME sub-sector of the economy.
During the meeting, a technical committee comprising the BoI, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), Development Bank of Nigeria (DBN), some DFIs, Bank of Agriculture (BOA), was constituted and asked to submit its recommendations to the larger meeting within one week. The Technical Committee has as its Chairman, the Director, Development Finance Department (DFD), Dr. Mudashiru Olaitan,
In his concluding remarks, the CBN Governor directed that the report of the committee should form part of the theme of the year’s Bankers’ Committee Retreat, scheduled to hold between this Friday through Saturday in Lagos.
Among those in attendance at the strategy meeting include, the Managing Director, Development Bank of Nigeria, Mr. Tony Okpanachi; and Managing Director, Bank of Industry, Mr. Olukayode Pitan, and the Special Adviser to the President on Economic Matters in the Vice President’s Office, Dr. Adeyemi Dipeolu.