Following difficulties faced by owners of small businesses in accessing loans from money banks, the Small and Medium Enterprise Development Agency of Nigeria has opened talks with the Central Bank of Nigeria to address the challenges by floating a Microfinance Bank for Micro, Small and Medium Enterprises next year.
SMEDAN Director-General, Dikko Radda who made this known at the end of year Commerce and Industry Correspondents Association of Nigeria’s Forum in Abuja said the Microfinance Bank for MSMEs when established will provide the sector with the needed fund to operate.
He said the Microfinance bank which would be jointly own by SMEDAN and the operators will free MSMEs from the business killing interest rates by commercial banks adding that since access to finance has been identified as one of the major obstacles to MSMEs operations, the agency has also opened discussions with the Bank of Agriculture to set up a matching fund for the sector.
He also said the agency is setting up Industrial Development Centre that would serve as a platform for the development of MSMEs.
The Chairman, Commerce and Industry Correspondents Association of Nigeria, Frederick Idehai earlier, called on SMEDAN to save MSMEs which is the heartbeat of everything economy.
The engagement came to a close with assurances from the agency to better the fortune of small businesses in the country.
