New data has shown Fidelity, FBN Holdings, and Guaranty Trust Holding Company recorded the most support for Small and Medium Enterprises (SMEs) growth in Africa’s biggest economy.
BusinessDay Analysis of Fidelity Bank, FBN Holding, GTCO, Zenith Bank, Stanbic IBTC Holdings, Union Bank, Access Bank, and Sterling Bank financial books showed they recorded a cumulative contribution to the Small and Medium Enterprises Equity Investment scheme (SMEEIS) of N22.6 billion, up 6.6 percent from N21.2 billion in September 2021.
The SMEEIS is a voluntary initiative of the Bankers’ Committee which was in response to the Federal Government’s concerns and policy measures for the promotion of SMEs as vehicles for rapid industrialisation, sustainable economic development, poverty alleviation, and employment generation.
Fidelity bank’s small and medium enterprises equity investment reserve recorded an increase of 33.4 percent to N7.11 billion in September 2022 from N5.33 billion in September 2021.
Fidelity bank has the Eduloan targeted at private schools registered, Fidelity Private Medical Support Scheme designed for eligible private hospitals, and Fidelity Pharmacy Support Scheme designed for eligible community pharmacy businesses.
FBN Holding’s small and medium enterprises equity investment reserve stood at N6.08 billion year on year.
FBN Holdings designed facilities such as import finance targeted at FirstBank customers involved in the importation of raw materials or finished goods, Oil and Gas Contract Finance designed for indigenous oil and gas companies, FMCG Key Distributorship Finance which is designed for distributors of FMCG principals among other SME products financing options.
Read also: Lafarge Africa commits to safer environment
Also, GTCO’s small and medium enterprises equity investment reserve was at N4.2 billion year on year.
GTCO offers QuickCredit for Small Businesses which is a time loan product aimed at financing the working capital of SMEs in Education (creche, primary & secondary schools) and Healthcare (Hospitals, Retail Pharmacies, and Diagnostic Centres).
Zenith bank’s small and medium enterprises equity investment reserve increased to N1.2 billion in September 2022, a 13.8 percent increase from N1.1 billion in September 2021.
Zenith Bank offers SME Grow My Business targeted at micro, small and medium businesses with loan types specially designed to promote expansion in the Beauty/fashion, Confectionery and Fitfam/healthy living sectors.
Stanbic IBTC Holdings’ small and medium enterprises equity investment reserve stood at N1.0 billion year on year. Stanbic IBTC Holdings give lending solutions and term options based on the business needs.
Union bank’s small and medium enterprises equity investment reserve was at N935 million in September 2022, a 37.6 percent decline from N1.5 billion in September 2021.
Union bank renders loan services like Cash Flow Lending, School Finance – Short-term bridge finance, Local Purchase Order, Invoice discounting Finance, Distributor Finance, Asset Finance, Term Loan, Overdraft, Intervention Funds, and Short-Term Finance.
Wema bank recorded N902 million as its small and medium enterprises’ equity investment reserve year on year. Wema offers Female Support Loan, Pharma Loan, Medi Loan, School Support Facility, Development Bank of Nigeria (DBN) Facility and Green Energy Finance Facility.
Access Bank recorded N827 million in September 2022, a 0.1 percent increase from N826 million in September 2021. Access bank renders Creative Sector Loan for funding for business.
Sterling bank stood at N235 million year on year. Sterling bank provides business loans like Business Support Facility, Agricultural Input Scheme and Tractor Acquisition Scheme, and Trade Services among others.
According to the Central Bank of Nigeria, the 10 (ten) percent of the profit after tax (PAT) to be set aside annually shall be invested in small and medium industries as the banking industry’s contribution to the Federal Government’s efforts towards stimulating economic growth, developing local technology and generating employment.
“Deposit Money Banks (DMBs)/Development Finance Institutions (DFIs) who will be eligible for wholesale funding shall satisfy the following conditions – Sign MOU with the CBN, undertake to bear all the credit risks of the loans they shall be granting, Issue authority to the CBN to deduct the balance of the outstanding loan at source from its account with the Bank, Set aside ten (10) percent of SME fund accessed for financing start-up businesses,” the apex bank said in a note.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
