The Central Bank of Nigeria, CBN, has released the modalities for the operation of the N26.87 billion Agri-Business Small and Medium Enterprises Investment Scheme, AGSMEIS.
The scheme, which was approved at the Bankers Committee meeting in February 2017, would be managed by a Special Purpose Vehicle, SPV, named Banker’s Fund Managers Limited, while the Board of Directors, BoD, is expected to monitor the implementation of the scheme.
“The initiative is to support the Federal Government’s efforts and policy measures for the promotion of agricultural business and small and medium enterprises (SMEs) as vehicle for sustainable economic development and employment generation,” said a statement announcing the commencement of the scheme.
“The mode of operation of the initiative released by the CBN indicates that the scheme requires all banks in Nigeria to set aside 5% of their profit after tax annually for equity investment in Agri-business and SMEs, which has so far garnered the sum of N26.87billion from twenty-one (21) banks to be invested in projects approved by the Board of Directors of the scheme,” continue used the statement.
Accordong to the CBN, the scheme would boost agricultural investments such as production, storage, processing, logistics and marketing. Others are SMEs in the real and services sectors such as manufacturing, agriculture, mining and modular refineries.
Similarly, technological endeavours such as local initiatives in information and communication technology, ICT, and any other activities as may be determined by the Bankers’ Committee from time to time would benefit from the scheme.
The CBN further stated: “This new initiative targeted at Start-ups and expansion of established companies or reviving of ailing companies is expected to further enhance job creation and agri-business towards sustainable economy.”