Don't Miss


Home   >   Business   >   Reps urge CBN to monitor MSME fund implementation

Reps urge CBN to monitor MSME fund implementation

By on February 20, 2014

The House of Representatives has called on the CBN to “closely” monitor the implementation of the intervention fund it set aside for Micro, Small and Medium Enterprises.

The House on Tuesday in Abuja also urged CBN to liaise with the appropriate associations and involve them in the disbursement of the funds to ensure that only genuine people access the fund.

The resolution was sequel to a motion by Rep. Patrick Ikhariale (PDP-Edo), which was adopted when put to vote by the Deputy Speaker, Mr Emeka Ihedioha.

The motion is entitled: “Urgent need to monitor the intervention fund set aside for Micro, Small and Medium Enterprises by CBN”.

Ikhariale, while moving the motion, said the CBN had set aside N220 billion as fund from which micro- finance banks could borrow money at nine per cent interest rate and in turn lend to MSME.

He said the fund was aimed at addressing the challenges being experienced by MSME.

The lawmaker said that CBN would make the fund available to participating financial institutions to improve their capacity to meet the credit needs of MSME.

Ikhariale said that the fund had made specific provisions for small scale farmers and women entrepreneurs to facilitate efficient marketing.

According to him, 60 per cent of the fund has been reserved for women to ensure that they have easy access to credit.

The lawmaker, however, said that despite the laudable nature of the fund, there were “obvious” hurdles envisaged in its implementation.

He said that there was the need for the CBN to find a way to put a limit on the amount chargeable as interest to benefit both the micro finance banks and the borrowers.

Ikhariale called on the House to look into the matter to ensure that the fund was properly monitored.

Contributing to the debate, Rep. Fort Dike (PDP-Anambra) said the fund was to encourage the growth of small businesses, adding that it was important that people were encouraged to access the facility.

Rep. Leo Ogor (PDP-Delta) and Rep. Nado Karibo (PDP-Bayelsa) also supported the motion.

They said the fund was a laudable initiative by the CBN, which should be properly implemented.

 

 

[Punch]