New data has shown Fidelity, FBN Holdings, and Guaranty Trust Holding Company, recorded the most support for Small and Medium Enterprises (SMEs) growth in Africa’s biggest economy.
BusinessDay analysis of Fidelity Bank, FBN Holding, GTCO, Zenith Bank, Stanbic IBTC Holdings, Union Bank, Access Bank, and Sterling Bank, financial books showed that these banks recorded a cumulative contribution to the Small and Medium Enterprises Equity Investment scheme (SMEEIS) of N22.6 billion, up 6.6% from N21.2 billion in September 2021.
The SMEEIS is a voluntary initiative of the Bankers’ Committee in response to the Federal Government’s concerns and policy measures for the promotion of SMEs as vehicles for rapid industrialisation, sustainable economic development, poverty alleviation, and employment generation.
Fidelity Bank’s SME’s equity investment reserve recorded an increase of 33.4% to N7.11 billion in September 2022 from N5.33 billion in September 2021.
For instance, Fidelity Bank’s Eduloan is targeted at registered private schools, while Fidelity Private Medical Support Scheme is designed for eligible private hospitals, and Fidelity Pharmacy Support Scheme is intended for eligible community pharmacy businesses amongst a range of value-adding services and products designed to help SMEs run profitably.
While FBN Holding’s small and medium enterprises equity investment reserve stood at N6.08 billion year-on-year; GTCO’s small and medium enterprises equity investment reserve was N4.2 billion year-on-year in the period under review.
SMEs equity investment reserve figures for other banks indicate that Zenith Bank recorded N1.2 billion; Stanbic IBTC Holdings N1.0 billion; Union Bank reported N935 million; Wema Bank N902 million; Access Bank N827 million and Sterling Bank posted N235 million between September 2021 and September 2022.
The Central Bank of Nigeria (CBN), directed that 10% of the profit after tax (PAT) should be set aside annually and invested in small and medium industries as the banking industry’s contribution to the Federal Government’s efforts towards stimulating economic growth, developing local technology, and generating employment.
The Central Bank of Nigeria (CBN), directed that 10% of the profit after tax (PAT) should be set aside annually and invested in small and medium industries as the banking industry’s contribution to the Federal Government’s efforts towards stimulating economic growth, developing local technology, and generating employment.
“Deposit Money Banks (DMBs)/Development Finance Institutions (DFIs), who will be eligible for wholesale funding shall satisfy the following conditions – sign MoU with the CBN, undertake to bear all the credit risks of the loans they shall be granting, issue authority to the CBN to deduct the balance of the outstanding loan at source from its account with the Bank, set aside 10% of SME fund accessed for financing start-up businesses,” the apex bank said in a note.
