Some data on fiscal and quasi-fiscal intervention in financing for SMEs in 2017:
Fiscal interventions first.
Fiscal interventions first.
Government Enterprise and Empowerment Program - GEEP (AKA MarketMoni/TraderMoni/FarmerMoni)
₦11.1 Billiion disbursed by BOI to 205,863 beneficiaries.
Average of ~₦54,000 per beneficiary to less than 0.3% of 77 million SMEs in Nigeria.
Source: BOI 2017 Annual Report.
₦11.1 Billiion disbursed by BOI to 205,863 beneficiaries.
Average of ~₦54,000 per beneficiary to less than 0.3% of 77 million SMEs in Nigeria.
Source: BOI 2017 Annual Report.
Source of funding was the federal budget - From the ₦140 Billion spent on Social Investment Programs in 2017.
It would be interesting to see what the 2018 numbers look like.
It would be interesting to see what the 2018 numbers look like.
2) Equity investment of ₦40.6 Billion in the Development Bank of Nigeria with funding coming directly from the federal budget.
Increased total capital available for lending of DBN to ₦128 Billion (with 87.9 Billion already provided by DFIs - WB, AFD, KFW).
Increased total capital available for lending of DBN to ₦128 Billion (with 87.9 Billion already provided by DFIs - WB, AFD, KFW).
However, operations only started in Nov 2017 and ₦182.3 million loaned to SMEs by end of the 2017 Fianncial year.
No idea how many beneficiaries.
Again, would be interesting to see 2018 performance.
Source: DBN 2017 Financial Statements.
No idea how many beneficiaries.
Again, would be interesting to see 2018 performance.
Source: DBN 2017 Financial Statements.
Now Quasi-Fiscal Interventions
₦46 Billion in financing for MSMEs in FY 2017.
1) Bank of Industry’s SME Directorate drove the bulk of performance - ₦40.9 Billion in loans to SMEs.
2) CBN MSME Development Fund a distant second with ₦4.2 Billion in loans.
₦46 Billion in financing for MSMEs in FY 2017.
1) Bank of Industry’s SME Directorate drove the bulk of performance - ₦40.9 Billion in loans to SMEs.
2) CBN MSME Development Fund a distant second with ₦4.2 Billion in loans.
At the Sub-National Level, LSETF provided ₦5.1 Billion in loans to MSMEs in FY 2017.
Bringing total fiscal, quasi-fiscal and sub-national interventions to about ₦97.7 Billion in 2017.
Bringing total fiscal, quasi-fiscal and sub-national interventions to about ₦97.7 Billion in 2017.
Total Commercial Bank lending to SMEs in 2017 was ₦10.7 Billion, less than 0.1% of the total commercial bank credit to the private sector of ₦16.2 Trillion.
Moral of the story: For small businesses looking for financing, fiscal and quasi-fiscal interventions are important.
Moral of the story: For small businesses looking for financing, fiscal and quasi-fiscal interventions are important.
Also all the interventions are debt.
I think having interventions that provide (or catalyse) equity are equally important given that’s the type of funding more relevant for SMEs. Not sure how that would look though. Anyway, my 2 cents.
The End. ✌🏾
I think having interventions that provide (or catalyse) equity are equally important given that’s the type of funding more relevant for SMEs. Not sure how that would look though. Anyway, my 2 cents.
The End. ✌🏾
