N37.42 billion SMEEIS disbursement: Zero fund rocks microfinance sector

The bankers committee initiated SMEEIS mandates banks to set aside 10 percent of their profit before tax for equity investment in small and medium scale enterprises.

The Central Bank of Nigeria (CBN) as a result of banks’ recalcitrant attitude towards the scheme was discourage and decided to make it optional.

According to the CBN, the real sector and the service related sectors of the economy got 49.28 percent and 50.72 percent respectively from the total among disbursed.

In the month under review, a total of 188 projects were financed in the real sector while the service related sector projects were 144.

A further look at the disbursement shows that 302 projects were financed under the scheme nationally.

Out of the 302 projects that were financed nationally, 41 projects were from the agro allied sector which includes wood work and water. The 41 agro allied sector projects worth N1.69 billion representing 7.98 percent of the total amount disbursed.

Also, in the manufacturing sector, 133 projects were financed valued at N7.52 billion or 35.58 percent.

Likewise, the construction industry got N1.15billion for eleven projects or 3.64 percent of the total amount disbursed.

The solid minerals sector also received attention as three projects worth N59.44million were financed.

The services related sector, leisure and tourism firms attracted a large chunk of the fund worth N4.5 billion for 18 projects representing 20.58 percent of the total amount disbursed.

The services sector got N4.35billion or 20.58 percent for 70 projects while telecommunications firms got N1.8 billion or 8.39 percent for 22 projects.

Educational establishments were also favoured because they got from the Scheme N133.9million or 0.64 percent of the disbursed funds.

Meanwhile, reports reaching Business Day from the CBN indicated that the apex bank is currently undertaking a review of the entire scheme to work out how best to make banks contribute to SMEs more effectively and beneficially to the economy.