Fidelity Bank disburses N80m MSME fund to three firms

By Babajide Komolafe

Fidelity Bank has disbursed N80 million to three firms under the N220 billion Micro Small and Medium Enterprises (MSME) fund.

The MSME fund was established by the Central Bank of Nigeria (CBN) last year for lending to MSMEs at nine percent interest rate.

Speaking at the presentation of the fund to the beneficiaries, Managing Director/Chief Executive Officer, Fidelity Bank Plc, Mr. Nnamdi Okonkwo said that the three firms namely.

Petters & Daniels Industries Limited, Uzo-Best Nigeria Limited, and Pecho Plastics, were the first set to benefit from the CBN fund through the bank.

He said about 400 MSME firms applied for the fund through Fidelity Bank, adding that others would be able to access the fund once they meet all the conditions for accessing it.

Okonkwo said that the disbursement marks a milestone in the commitment of Fidelity Bank to the growth of SMEs in the country. He said the bank recognises the critical role SMEs play in the economy and hence decided to devote resources to helping the SMEs operators through its Managed SME programme, executed by its SME department headed by a top official of the bank.

He said through the Managed SME programme, Fidelity Bank’s staff work with SMEs to understand their challenges, needs of their businesses in order to develop appropriate financing solution to them. He said an example is the N600 million funding provided to the 75,000 member footwear and textile SME cluster in Aba, Abia State. He noted that the Bank had never had a bad experience in its relationship with SMEs and it would continue to support and participate in any initiative to enhance the growth of the SMEs in the country.

Okonkwo commended the establishment of the N220 billion MSME Fund saying it would go a long way in enhancing access to cheap loans for MSMEs in the country. He said that hitherto lack of access to finance had been one of the major challenges confronting SMEs in the country due to requirements like collateral, identity and credit scoring.

He said while the challenge of identity and credit scoring are been addressed through the establishment of credit bureaus and the biometric verification number (BVN), while the CBN MSME fund addresses the challenges of collateral and interest rate. The fund, he said in addition to pegging interest rate at 9.0 percent also allows 50 percent collateral cover for loans to MSMEs. He said the N80 million being disbursed to the three firms, would enhance their capital and ability to compete in their different business segments.