Recall that the Central Bank of Nigeria (CBN) in collaboration with the Bankers Committee contributed the N26 billion for equity investment in agriculture and Small and Medium Enterprises (SMEs) called the AGSME fund?
Well, here’s good new – the Bankers Committee have revealed that the N26bn equity funding to support Micro-Small and Medium Enterprise Development and the Agriculture industry is now available.
If you operate an agriculture business, or have a business that qualifies as a small and medium enterprise you can approach you bank, where you’ll be guided on preliminary steps involved in accessing the funds.
The AGSME Fund is a long term capital required to catalyse growth in SMEs and make them more viable and sustainable.
Among other things, the objectives of the scheme are to:
- Ensure access to finance Small and Medium Enterprises (SMEs) as these enterprises are the engine of growth of the Nigerian economy.
- Generate much-needed employment opportunities in Nigeria.
- Develop agricultural value chain and ensure sustainable agricultural practices
- Boost the managerial capacity of Agribusiness/SMEs as pipelines of growth.
- Catalyse growth in SMEs to ease access to finance, to build capacity, to create jobs, and ultimately to grow prosperity.
According to the scheme’s guidelines, investment under the scheme which could be for start-ups, expansion of established companies or reviving of ailing companies, shall be through equity in the form of fresh injection of capital.
Investment shall be made for a maximum period of 10 years. There shall be a lock-up period before exit in order to encourage value creation and boost managerial capacity of the SMEs unless there is material adverse event.
The scheme shall be operated for a period of 10 years in the first instance and be reviewed after five years of its operations.
Did you find this article informative? Kindly like, comment and share!