Segun Ogundeji, South-West Coordinator, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), says the method of disbursement for the Federal Government’s N220 billion intervention fund may be released in March.
SME Development Fund was launched by President Goodluck Jonathan in 2014 as part of efforts to enhance the activities of SMEs and their contribution to the economy.
Ogundeji said on Friday in Lagos that his optimism followed the Minister of Trade and Investment, Mr Olusegun Aganga’s meeting with operators of Microfinance Banks.
The meeting scheduled for March will dwell on the disbursement modalities for N220 billion to Small and Medium Enterprises (SME).
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According to him, the policy meeting in collaboration with SMEDAN would be in line with the decision of the last forum the ministry had with the agency.
“The minister of trade and investment will be meeting with microfinance banks in Lagos by March over the disbursement of the SME loans.
“We are not unaware that the Federal Government has just softened the conditions for the disbursement of the loans but most of the operators have not started receiving them.
“When the minister comes, he will discuss with the banks and listen to their complaints and other issues hindering them from getting easy access to the loans.
“Also, I am glad to tell you that he might be coming with some part of the loan, depending on the agreement with the Central Bank of Nigeria, to disburse to some recognised cooperative associations.
“This is why we advise small business operators to endeavour to formalise their businesses by joining associations so that they can be taken more seriously,’’ he said.
Some of the SME operators in Lagos said that in spite of the laudable aims of Federal Government, bureaucratic bottlenecks had made it difficult for them to access the funds.
Meanwhile, the National Council on SMEs, headed by Vice-President Namadi Sambo, recently allayed the fears of the operators by approving the interest rate on the funds to be at 9 per cent. (NAN)
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