The Scheme requires all banks in Nigeria to set aside 10% of their Profit After Tax (PAT) for equity investment and promotion of small and medium enterprises. Funding to be provided under the scheme shall be in the form of loans or equity investment or a combination of both in eligible enterprises.
Activities covered by the scheme:
Every legal business activity is covered with the exception of:
Definition of a small and medium enterprise:
For the purpose of this scheme, a small and medium enterprise is defined as any enterprise with a maximum asset base of N1.5-billion (excluding land and working capital), and with no lower or upper limit of staff. This is subject to review by the Bankers' Committee from time to time.
Eligibility for funding:
To be eligible for funding under the Scheme, a prospective beneficiary shall:
Modalities of the scheme:
Maximum amount investible in any enterprise:
The maximum amount investible in any enterprise is limited to 20% of the bank's annual set aside funds subject to a maximum of N500-million.
Deadline for investing funds/investment exit:
Requirements by beneficiaries:
Beneficiaries will be expected to:
The recommendations of industrial associations, particularly Manufacturers Association of Nigeria (MAN); National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); National Association of Small and Medium Scale Enterprises (NASME); and National Association of Small Scale Industries (NASSI) will be mandatory for members of these associations. Membership of recognised NGOs engaged in entrepreneurial development and promotion of small and medium scale enterprises will also be an advantage.