In a publication outlining guidelines for the operation of its Micro-, Small, and Medium-Sized Enterprises Development Fund (MSMEDF), the Central Bank of Nigeria (CBN), the country’s central banking authority, included a mandate to allocate 60 percent of the fund, or NGN 132 billion (USD 802 million), for on-lending to women-owned enterprises in an effort to promote the empowerment of women and to reduce gender inequality. As was reported by MicroCapital at the time, CBN launched the MSMEDF in September 2013 with the goal of channeling NGN 220 billion (USD 1.3 billion) in long-term, low-interest loans to approximately 2 million MSMEs in the country over a 10-year period. CBN further mandated that 90 percent of the funds, or NGN 198 billion (USD 1.2 billion), would be disbursed via participating financial institutions (PFIs), including microfinance institutions (MFIs), microfinance banks (MFBs), lending institutions (LIs) and other finance companies as defined by CBN.
In addition to the empowerment of women, according to statements attributed to Ms Loius Juma[2], a Principal Manager at CBN, benefits of the program include job creation, capacity building and grass-roots economic development.
CBN reports total assets of NGN 13.8 trillion (USD 84 billion) as of November 2013.
By A’kos Szebeni, Research Associate
About the Central Bank of Nigeria (CBN)
The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the act of parliament that created CBN, its statutory mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government.” As of November 2013, CBN reports total assets of NGN 13.8 trillion (USD 84 billion).
Sources and Additional Resources:
[1] Central Bank of Nigeria, “Guidelines for the Operation of Micro, Small and Medium Enterprises Development Fund for Nigeria,” http://www.cenbank.org/Out/2013/CCD/MSMEDF%20GUIDELINES%20%20.pdf
[2] AllAfrica, “Nigeria: CBN Earmarks N132 Billion for Women Entrepreneurs,” http://allafrica.com/stories/201401260218.html
MicroCapital, March 3, 2014, “Central Bank of Nigeria Announces Closure of 83 Microfinance Banks (MFBs), Denies Shutdown of Additional 600 MFBs,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-announces-closure-of-83-microfinance-banks-mfbs-denies-shutdown-of-additional-600-mfbs/
MicroCapital, September 6, 2013, “Central Bank of Nigeria Launches $1.3b Micro, Small and Medium Enterprises Development Fund,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-launches-1-3b-micro-small-and-medium-enterprises-development-fund/
MicroCapital, August 12, 2012, “Microfinance Development Fund of Nigeria Will Seek to Increase Women’s Access to Financial Services by 15% per Annum,” https://www.microcapital.org/microcapital-brief-microfinance-development-fund-of-nigeria-will-seek-to-increase-womens-access-to-financial-services-by-15-per-annum/
MicroCapital, May 28, 2012, “Central Bank of Nigeria (CBN) Financial Inclusion Strategy Includes Goal of 63m Savings Accounts by 2020,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-cbn-financial-inclusion-strategy-includes-goal-of-63m-savings-accounts-by-2020/
MicroCapital, May 18, 2012, “Central Bank of Nigeria (CBN): MSME Development Fund Not for Bailing out Microfinance Banks,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-cbn-msme-development-fund-not-for-bailing-out-microfinance-banks/
MicroCapital, April 1, 2012, “Central Bank of Nigeria to Endorse Microfinance Development Fund, More Automated Teller Machines (ATMs), Regulation Related to Electronic Statements, Dispute Resolution,” https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-to-endorse-microfinance-development-fund-more-automated-teller-machines-atms-regulation-related-to-electronic-statements-dispute-resolution/
MicroCapital Universe Profile: Central Bank of Nigeria (CBN), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
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