CBN N2 Billion Loan For Artisans Approved – FAQs on the CBN MSMED Funds

The Central Bank of Nigeria (CBN) has currently approved a 2 billion Naira loan to the government of Imo State for the empowerment of artisans in the state.

Ford Ozumba, the Commissioner for Labor and Productivity, revealed this to journalists in Owerri on Tuesday while unveiling the Imo 2022 Entrepreneurial Product Expo in collaboration with CBN. He said that the Imo State administration approached the CBN and was found to be qualified for the loan.

 The Commissioner explained:

“The project was conceived to expose artisans of state origin to trade, assist them in using their knowledge to migrate into the digital socio-formation, create structures and systems that would engage youths in productive sectors, and for them to train others to alleviate poverty and contribute to the state’s efforts to improve the economy.”

“The money is in collaboration with the Central Bank of Nigeria, which has sanctioned N2 billion for Imo State.”

We don’t have any money. It has been deposited in the bank. It will be given to young people in the trade. It’s a loan from the Central Bank of Nigeria. This project has a facility at the CBN. When we approached them, they informed us that I was qualified. The funds will be distributed to craftsmen. These artists have already been created.

We collaborate with the craftsmen’s associations. So, as part of the project’s activities, we’re launching a weekly event, the inaugural Imo State innovation and entrepreneurship exhibition in Owerri, on May 10th, 2022.

He remarked:

“The state is fortunate in that it has several outstanding artisans and accomplished industrialists whose work is available.”

“We want to put our people on display to promote their abilities, skills, cleverness, and originality, and to expose this to the international community through well-designed organized technology.”

They’d be motivated to export their goods and contribute to the growth of our economy.” 

Consider the frequently asked questions below about the CBN’s issue with the approval of the MSMED funds, especially for artisans in Nigeria.

FAQs About CBN MSMED Funds

How Can I (Or My Company) Access The MSMEDF?

Prospective borrowers should meet with Participating Financial Institutions (PFIs) of their choice & apply for the Fund.

What categories of entrepreneurs can apply for the Fund?

(a) Micro entrepreneurs (i. e. borrowers seeking loans of less than N500,000) are to approach any of the four institutions:

  • Microfinance Banks         
  • NGO/Microfinance Institutions
  • Financial Cooperatives   
  • Finance Companies

(b) Small and Medium Enterprises (SMEs) (i.e. prospective borrowers seeking between N500, 000 and N50million) are to approach any of these institutions:

  • Deposit Money Banks
  • Bank of Industry (BOI)
  • Bank of Agriculture)

Who are the Participating Financial Institutions?

The PFIs under the Fund are as follows:
Micro borrowers (N500,000 to N5,000,000) would approach:

  • Microfinance Banks
  • NGO-Microfinance Institutions
  • Finance Companies
  • Financial Cooperatives

SME borrowers (N5,000,000 to N50,000,000) would approach: Deposit Money Banks and Development Finance Institutions (Bank of Agric and Bank of Industry)

What are the activities that can be financed under the Fund?

  • Agricultural value chain activities,
  • Manufacturing & Cottage Industries,
  • Artisans,
  • Services,
  • Trade and general commerce,
  • Renewable energy or energy-efficient products and technologies, and
  • Any other income-generating projects as may be prescribed by the CBN.
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