The recent approval by the Federal Executive Council for the disbursement of N60 billion from the Central Bank of Nigeria via the Agric Small and Medium Enterprises Investment Scheme (AGSMEIS) presents a significant opportunity for small business growth, particularly among young entrepreneurs nationwide.
Here’s a comprehensive guide on how to benefit from this scheme, including eligibility criteria, requirements, and the application process.
Understanding the Agric Small and Medium Enterprises Investment Scheme (AGSMEIS)
The AGSMEIS is a government initiative aimed at promoting agricultural businesses and small/medium enterprises (SMEs) to foster sustainable economic development and employment generation in Nigeria.
Objectives of AGSMEIS
The objectives of the scheme are as follows:
- Access to Finance: Facilitate access to finance for SMEs, which serve as the engine of growth for the Nigerian economy.
- Job Creation: Generate employment opportunities across various sectors.
- Agricultural Development: Develop the agricultural value chain and promote sustainable agricultural practices.
- Capacity Building: Enhance the managerial capacity of agri-business SMEs to foster growth and expansion.
Eligibility Criteria for Funding
To be eligible for funding under the AGSMEIS, prospective investors must:
- Comply with the provisions of the Companies and Allied Matters Act (1990), including the filing of annual returns and audited financial statements.
- Adhere to all applicable tax laws and regulations and submit regular tax returns to the appropriate authorities.
- Apply through a participating bank.
Responsibilities of Beneficiaries
Beneficiaries of the scheme are expected to:
- Prudently utilize the funds allocated to them.
- Maintain up-to-date records of their companies’ activities.
- Make their books and structures available for inspection by relevant authorities, including banks and the CBN.
- Comply with the guidelines of the scheme.
- Provide monthly financial and operational reports to the Special Purpose Vehicle (SPV) before the 15th of the succeeding month.
Requirements for CBN Loan Approval
Applicants must fulfill the following requirements for the approval of CBN loans:
- Registered business with the Corporate Affairs Commission (CAC).
- Certification by an Entrepreneurship Development Institute (EDI).
- Bank Verification Number (BVN).
- Applicant’s passport photo and a guarantor.
- Valid identification card.
How to Apply for CBN’s AGSMEIS Loans
Training is the first step; interested people are required to take a course with an Entrepreneurship Development Institute that has been certified by NIRSAL MFB (EDI).
You would receive a certificate for completing the program by attending a one (1) week mandatory training at the Oko-Oba Agege/EDI Centre of the Lagos State Ministry of Agriculture.
- A) Applicants can apply for a loan online through the NIRSAL MFB’s portal after receiving training from the Entrepreneur Development Institute (EDI) in Lagos State and upload the received certificate of completion.
- B) Once you visit NIRSAL MFB webpage (nmfb.com.ng) click on AGSMEIS loan, then select Ministry of Agriculture as Entrepreneur Development Institute (EDI) to apply.
- C) The applications will subsequently be forwarded to CBN for review. Applicants will be contacted for an interview about their business.
- D) Those that meet the criteria will be contacted and awarded the loan.
- E) Once the loan is granted, the monies will be transferred to the beneficiaries’ accounts. Candidates who are not qualified are provided comments.
- F) Please note that the loan amount will be deposited into your NMFB account.
Also, the purchase of your equipment(s)/machinery will be handled by one of the NMFB’s certified Vendors, while the working capital will be available for withdrawal through your account upon meeting all terms and restrictions.
Conclusion
In conclusion, the CBN’s N60 billion SME schemes offer a valuable opportunity for Nigerian youths to kickstart their entrepreneurial journey and contribute to the nation’s economic growth.
By understanding the eligibility criteria, fulfilling requirements, and following the application process diligently, aspiring entrepreneurs can maximize the benefits of this scheme and realize their business aspirations.
Seize this opportunity to access finance, create jobs, and contribute to the development of the agricultural sector and SME ecosystem in Nigeria.
