Th e Central Bank of Nigeria (CBN) has stated that the funding gap in the small and medium enterprises (SMEs) sector is about N9.6 trillion Th e CBN, which expressed concern over the development, however said the federal government was working assiduously to fi ne-tune its policies and programmes to bring down the cost of doing business and access to funds. According to the Director of Communications of CBN, Ibrahim Muazu, the CBN has expressed commitment to bridge the huge gap, adding that the N220 billion intervention fund for Micro Small and Medium Enterprises (MSMEs) instituted by the CBN is a part of the commitment to that eff ect.
Th e CBN’s spokesman also noted that a maximum of 10 per cent of the commercial component of the fund is being channelled to trading and commerce to ensure that productive sectors of the economy continue to attract more fi nancing necessary for employment creation and diversifi cation of the country’s economic base. “Th e broad objective of the N220 billion MSMEs fund is to channel low interest fund through participating institutions like banks and microfi nance banks, state governments and small businesses that need it to create jobs and empower grassroots population,” he said. Th e policy interventions has been urged to make access to fi nancing easier for small enterprises, this will not only fast track their growth into medium and large enterprises but will also increase their capacities, in production and provision of employment opportunities to massive number of youths that are presently unemployed.
