Question: The Acting President, Prof. Yemi Osinbajo, announced last week that the Federal Government plans to introduce a zero-collateral credit scheme for Micro, Small and Medium Enterprises. What are the details of the scheme and when will disbursements begin?
Chris Eromosele, Lagos.
Answer: True. The Acting President made the announcement on Wednesday, August 1, 2018, during the maiden edition of the MSMEs Award at the State House Banquet Hall in Abuja.
Details of the scheme are still sketchy. What we know at this time are as follows:
The Federal Government will implement the scheme in partnership with the Central Bank of Nigeria and the commercial banks. MSMEs will access credit facilities of between N2m to N10m for tenors of between Five to Seven years. Interest rate will be Five percent. Approval or otherwise will be based on Credit Committee’s review of bankable business proposals from borrowers. Borrowed sums will be secured by provision of a guarantor by the borrowers. Start-up date: To be announced!
So far, so good. But watch out for a potential danger sign: