By PROVIDENCE OBUH

The President, National Association of Microfinance Banks, NAMB, Mr. Valentine Whensu, said that about N9.6 trillion financing gap exist in the Micro Small and Medium Enterprises (MSMEs) sector.

Also, he said that out of the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF) launched in September 2013, only five microfinance banks and nine states out of the 20 that applied have accessed the fund.

Whensu said this during NECA’s Network of Entrepreneurial Women (NNEW) roundtable workshop on how to access the N220 billion MSMEDF.

According to him, “Since the fund was launched in September last year, only five MfBs have accessed the fund and only nine states out of the 20 that applied   have accessed the fund.

“There are 17, 284, 671 SMEs in Nigeria employing 32, 375, 460. These MSMEs contribute a total of 79 percent to GDP.

“N9.6 trillion financing gap in MSMEs sector in Nigeria, commercial bank loan to MSMEs at a percentage of total credit decreased from 48 percent in 1992 to 0.2 percent in 2010, meaning that MfBs will give out this money.

“CBN started with a good initiative of N220 billion for MSMEs but you can’t collect the money easily because there are conditions attached: 75 percent collateral in liquid form, which is Treasury bill. However, the CBN slashed the 75 percent collateral to 50 percent only last week but we are negotiating for zero collateral.