Banks Pledge N25b Annual Support for Agric, SMEs

By Dipo Olowookere

An annual financial support of about N25 billion has been promised by the Bankers Committee to finance agriculture and small and medium enterprises (SMEs) in a bid to back Federal Government’s diversification efforts.

Speaking with newsmen in Abuja, Director, Banking Support Department of the Central Bank of Nigeria (CBN), Mr Ahmed Abdullahi, explained that the fund will be made available to any firm or entrepreneur who aims to boost export drive or promote import substitution like processing of raw materials locally to reduce importation of finished items.

It was gathered that the banks agreed to contribute five percent of their profit-after-tax (PAT) towards the support of eligible and bankable export and import substitution projects.

From the industry profit and loss account in the past three years, and given average five percent VAT charge for the period, it is estimated that about N25 billion will be realized from their annual contributions.

It was also learnt that the funding pattern will be based on equity partnership arrangement and not loan and with no interest charge- and will run for a 10-year maximum duration.