The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has revised the selection process for beneficiaries of a N5 billion credit facility allocated to small businesses in the country. Under the new procedure, SMEDAN requires the submission of Corporate Affairs Commission (CAC) certificates and Tax Identification Numbers (TIN) as mandatory prerequisites to access the loan.
Moshood Lawal, Head of Corporate Affairs at SMEDAN, revealed this during an exclusive interview in Abuja. He explained that the agency had partnered with Sterling Bank to disburse loans ranging from N250,000 to N2,500,000 at a single-digit interest rate of nine percent. The credit facility aims to assist over 10,000 Small and Medium Enterprises (SMEs) over a 12-month period, fostering growth through enhanced financial access.
Lawal highlighted the importance of the new selection process, emphasizing the need to identify genuine applicants and ensure transparency in fund allocation. He stated, “We have developed an app to streamline the process and minimize human interference in assessing applicants’ credibility. Submission of CAC certificates and tax identification numbers is crucial to verify applicants’ authenticity and allocate funds appropriately.”
Addressing concerns about existing applicants, Lawal clarified that they must reapply using the newly developed app to be considered for disbursement. He emphasized the app’s role in collecting detailed information about applicants’ business plans and turnover, enabling SMEDAN to distinguish genuine businesses from fraudulent ones.
Lawal also mentioned the high interest in the credit facility, with over 200,000 small-scale businesses expressing interest initially. However, he underscored the challenges faced by SMEs in Nigeria, including insecurity, fraud, global competitiveness, and barriers to ease of doing business.
Financial experts believe that improved access to finance for SMEs will stimulate economic growth, enhance employment opportunities, and contribute to overall economic development and export growth. SMEDAN’s partnership with Sterling Bank and the introduction of stringent selection criteria aim to address these challenges and support the growth of small businesses in Nigeria.
