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Tuesday, July 14, 2020 /09:58
PM / by CBN / Header Image Credit: EcoGraphics
...To Create AGSMEIS Non-Interest Fund
...To Increase productivity, create jobs, Engender inclusive growth
The Central Bank of Nigeria (CBN) has unveiled
series of guidelines for Non-Interest Financial Institutions under its
Agri-Business, Small and Medium Enterprise Investment Scheme (AGSMEIS), Micro,
Small and Medium Enterprises Development Fund (MSMEDF), the Accelerated
Agricultural Development Scheme (AADS) and seven other intervention schemes in
its bouquet.
The issuance of the ten guidelines is sequel to
plans disclosed by the Bank in its June 2020 meeting to unveil a framework that
will integrate non-interest window in all its intervention programmes aimed at
supporting businesses and households that have been impacted negatively by the
corona virus (COVID-19).
The Bank, in the guidelines for the Operations
of the Agri-Business, Small and Medium Enterprises Investment Scheme (AGSMEIS)
for Non-Interest Financial Institutions (NIFIs) issued in Abuja on Tuesday, July
14, 2020, revealed the creation of a Fund to be known as 'AGSMEIS Non-Interest
Fund' to be domiciled in a dedicated account with the CBN.
The guidelines stipulate that each Non-Interest
Deposit Bank (full-fledged or window) is to set aside 5% of its profit after
tax (PAT) annually as contribution to the Fund. It added that each Non-Interest
Deposit Bank is also to transfer its contribution to the CBN not later than 10
working days after the Annual General Meeting (AGM) of the participating bank.
Eligible activities under the Scheme are
businesses across the agricultural value chain, covering production, inputs
supply, storage, processing, logistics and marketing; MSMEs in the real sector
including manufacturing, mining and petrochemicals; MSMEs in the service sector
including information and communication technology (ICT) and the creative
industry as well as other activities as the Central Bank of Nigeria (CBN) may
determine from time to time.
According to the guidelines, financing under
the Scheme will be for start-ups, business expansion or revival of ailing
companies and shall be in compliance with provisions of BOFIA (1991) as amended
and the principles underpinning operations of NIFIs
The MSMEDF for NIFIs guidelines are aimed to
channel low return funds to the MSME sub-sector of the Nigerian economy through
participating Financial Institutions (PFIs) to enhance access by MSMEs to
financial services.
Similarly, the non-interest guidelines for the
AADS are aimed at engaging a minimum of 370,000 youths in agricultural
production across the country between now and 2023, in order to reduce
unemployment among the youths in the country.
While the specific objectives of the MSMEDF for
NIFIs are to increase the productivity and output of microenterprises, job
creation and engender inclusive growth, those of the AADS are to increase
agricultural production towards food security, job creation and economic
diversification.
The non-interest guidelines for the AADS, which
is targeted at Nigerian youth between 18 and 35 years, seek to promote
interaction among state governments, the CBN and other stakeholders in the
agricultural value chain in each state to enhance job creation in the
agricultural sector, with focus on two crops where States have comparative
advantage, among others.
Other non-interest guidelines issued by the CBN
on Tuesday were for the Anchor Borrowers' Programme: the Credit Support for the
Health Sector; Intervention in the Textile Sector; the Real Sector
Support Facility (RSSF) revised guidelines (V3); the Real Sector Support
Facility (RSSF) through CRR; Non-Oil Export Stimulation Facility (ESF) and the
Creative Industry Financing Initiative (CIFI).
Speaking on the guidelines issued by the Bank,
the Director, Corporate Communications Department, Isaac Okorafor said the
establishment of the non-interest windows had opened more opportunities for
eligible beneficiaries to be considered for funding under all the Bank's
initiatives.
Related Links - Guidelines
1.
Non-Interest Guidelines for the Operations of the Credit
Support for the Healthcare Sector - CBN
2.
Non-Interest Guidelines for intervention in the
Textile Sector - CBN
3.
Non-Interest Guidelines for the Accelerated
Agricultural Development Scheme (AADS) - CBN
5. Anchor
Borrowers' Programme Guidelines
6. Modalities for
the Implementation of the Creative Industry Financing Initiative (Non-Interest)
7. Non-Interest
Guidelines for Non-Oil Export Stimulation Facility (ESF)
8. Non-Interest
Guidelines for Real Sector Support Facility (RSSF) Through CRR
10. Non-Interest
Guidelines for Real Sector Support Facility (RSSF) Revised Guidelines (V3)
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