August 16, 2013/CBN
A large number of un-served and under-served clients exist in the Nigerian MSME sub-sector. In order to address the funding requirements of this critical segment of the economy, Section 6.10 of the revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria stipulates that “a Microfinance Development Fund shall be set up, primarily to provide for the wholesale funding requirements of MFBs/MFIs”. The Policy also stipulates 80:20 prescription for on lending to micro enterprises and SMEs respectively, hence the decision of the Central Bank of Nigeria to rename it “Micro, Small and Medium Enterprises Development Fund’ (MSMEDF).
The Fund shall have a seed capital of N220billion.
Considering the peculiar challenges faced by women in accessing financial services in Nigeria, the Revised Microfinance Policy, Regulatory and Supervisory Framework in Section 4.2 (iv), provides that women’s access to financial services should increase by 15 per cent annually in order to eliminate gender disparity. In order to achieve this, 60% (N132.00 Billion) of the Fund has been earmarked for providing financial services to women.