• Wednesday, May 22, 2024
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World Bank approves $500m credit for SME in Nigeria

SMEsThe Board of Executive Directors of the World Bank has approved 500-million- dollar credit for Medium and Small Scale Enterprises in Nigeria, to increase their access to finance, a statement issued by  Bamidele Oladokun said on Friday.

In the statement, Oladokun, the bank’s Communication Specialist, said that the fund was from the International Bank for Reconstruction and Development (IBRD) to support SME projects.

“The project is in support of the government’s efforts to promote the growth and job creation potential of the private sector through improved access to financing.

“Limited access to finance is a key obstacle to enterprise growth and entrepreneurship, particularly for young people, and it is a major obstacle faced by SMEs.

“Only 6.7per cent of Nigerian firms are reported  of having a loan or active line of credit in 2014.

“SME lending made up only around five per cent of total commercial bank lending,’’ it said

It added that women entrepreneurs in Nigeria were held back by knowledge gaps, limited access to markets and some challenges.

 The statement also identified land ownership rights which, it said, limited the capacity of women to access finance.