SMEs Funds: CBN Delays Disbursement

Nigerian Central Bank, Abuja, Nigeria.

The Central Bank of Nigeria (CBN) and lenders involved in the disbursement of N220 billion Small, Medium Enterprises (SMEs) funds to small businesses have traded blames over the slow pace of the disbursement of the funds.

This came to fore yesterday at the training workshop organized by Enpretech Nigeria Foundation in collaboration with Fidelity Bank and the United Nations Conference on Trade and Development (UNCTAD), in Abuja.

The Group Head, Specialised SMEs of Fidelity Bank, Mr Ndubuisi Onuoha blamed the CBN for the slow pace of disbursement of the funds when asked by a participant why the bank was yet to fund his business over a year after meeting all the requirements.

“Fidelity Bank has done over N3billion disbursements; CBN is slowing things down; there is close to N2 billion pending with the CBN; we are doing everything to get the funds for SMEs. The problem is not with Fidelity Bank, we are only a conduit for passing the money to SMEs,” he said.

But CBN spokesman, Mr. Isaac Okoroafor dismissed the claim, as according to him, many loan applicants fail to meet the requirements for such loans.

“The common thing is that people present themselves for loans with no real intention of going into business or evidence that they have put in their own money. Or still that they may not possess the capacity to even run such a business,” he said.

He added that the SME fund has been designed for loan facilities which must be repaid by customers who received them.

Mr. Onuoha said in his earlier presentation that his bank was “committed to building sustainable small enterprises” stressing that “only 50% survive beyond three years because of lack of capacity and funds which pose major challenges. It doesn’t matter how much money they have, without capacity it will be lost.”

He said, “Some funds kill SMEs prematurely, they (SMEs) need to understand their type of business. We have alliances with technical partners to ensure this SMEs have acquired requisite skills and talents to manage their businesses.”

At the end of the training  said the bank  “will have confidence to lend to the participating SMEs and expose participants to how to access existing interventions if they need money.”

In terms of funding, Onuoha described the available funds as “limitless, because we have product papers once you have packaged yourself, well funding will not be an issue.”

The  General Manager, Business and Strategy of Enpretech Mr. Bright Osakwe said the programme “is an initiative of the United Nations Conference on Trade and Development (UNCTAD) and it’s aimed at enhancing entrepreneurship skills of SMEs.”

Enpretech he said has trained over 3000 participants in Nigeria and will require participants to come up with new business ideas and implement such ideas in the course of the six days programme.