SMEDAN, BOA Boost MSMEs with Matching Fund Programme

December 14, 2020
MSMEs Sustainability

By Adedapo Adesanya

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the Bank of Agriculture (BOA) are building synergy towards boosting the capacity of Micro and Small Enterprises (MSEs) across the country with a Matching Fund Programme.

This was disclosed in a statement issued by the corporate affairs unit of SMEDAN, which said the two agencies were determined to see this project work in the interest of Nigerian MSMEs which had faced a lot of challenges due to obvious factors.

The statement said the Director-General of SMEDAN, Mr Dikko Umaru Radda, disclosed the matching fund initiative, which will commence on Tuesday, December 15, 2020, is a promotional intervention meant to deliver credit to the sub-sector to enhance enterprise output, competitiveness and jobs creation.

He also stated that the disbursing entity under the programme will be the BOA, adding that, “Target beneficiaries for this programme shall be labour-intensive micro or small enterprises (MSEs), operating in the real sector.”

“These shall ideally be innovative value-added products that are establishing a footprint in the Nigerian market, and require additional funds to increase output,” the Director-General further said.

He, therefore, called for applications from all suitably-qualified MSEs located in the Federal Capital Territory (FCT), Kaduna and Oyo states to apply for the programme.

Mr Radda also stated that prospective beneficiaries, who must be registered with SMEDAN, may apply for loans within the range of N1.2 million to N5 million on business-friendly terms including waiver of collaterals.

SMEDAN was established by the SMEDAN Act of 2003 to promote the development of the MSME sector of the Nigeria Economy. The agency positions itself as a one-stop-shop for MSME development. Micro Enterprises are included in the clientele of the Agency since they form the bedrock for SMEs.

The Bank of Agriculture (BOA) is a government-sanctioned bank with the aim to provide help and finance to the Agriculture sector in Nigeria. Popularly called the farmers’ bank, the bank provides loans, guidance and banking for farmers across Nigeria. Restructured in 2000 as the Bank of Agriculture, the bank has been in existence under different names since 1972.

Currently, the bank has branches all over Nigeria. It is continually giving loans and support to Nigerians. The bank is owned majorly by the Central bank of Nigeria (CBN) and the Federal Ministry of Finance. All of which are government agencies.

The bank is supervised by the Ministry of Agriculture and regulated by the Central bank of Nigeria (CBN). It plays a big role in the SME sector of the Nigerian economy.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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