Association urges CBN to resume disbursement of MSME fund

The Association of Non-Bank Micro Finance Institutions of Nigeria (ANMFIN) has called on the Central Bank of Nigeria (CBN) to resume the disbursement of the Micro Small and Medium Development Fund (MSMEDF).

Mr Hamid Afolabi, the President of ANMFIN, made the call in an interview with the News Agency of Nigeria (NAN) in Abuja.

The MSMEDF was inaugurated by the CBN on Aug. 15, 2013 to promote a sound financial system in the country.

The sub-sector is characterised by a huge financing gap that has hindered development of MSMEs which has been recognised for its contribution to the country’s economy.

The fund prescribes 50:50 ratio for on-lending to micro enterprises and SMEs by participating Financial Institutions (PFIs).

Afolabi said the recommencement would ease businesses of small business owners and farmers in the rural areas and it would also ensure financial inclusion in the country.

He said, “ANMFIN will not be tired in appealing to the government, on the behalf of the people, as it is in our mandate to do so.

“It is true that some of our members have accessed the fund; many who accessed the fund have repaid and some even reapplied for this fund.

“The halt in the disbursement of this fund has grossly affected the businesses of the people and I pray CBN will keep to its promise of recommencing the disbursement soonest.’’

Afolabi commended President Mohammadu Buhari’s administration for continuing the disbursement of the fund upon assumption of office, saying it showed the president had the interest of the rural people at heart.

He said that although the expectations of Nigerians for the current administration had not been met, he was optimistic that the country would attain greater feat going forward.

Afolabi explained that the association had been able to overcome most of its challenges with various training it availed to its members.

He said the association was the largest in Africa and was optimistic that in the next five years, ANMFIN will attain World class recognition.

The CBN said it would soon recommence the disbursement of the MSMEDF to micro small and medium businesses.

The CBN halted the disbursement because the bank was overhauling the process to make it more efficient.