Apply for CBN Small And Medium Enterprises Development fund (MSMEDF) Loan.

Apply for CBN Small And Medium Enterprises Development fund (MSMEDF) Loan.


The CBN launched the MSME Development Fund on August 15, 2013 with a share capital of N220 billion.

The Fund was established in recognition of the significant contributions of the Micro, Small and Medium Enterprises (MSME) sub-sector to the economy and the existing huge financing gap.

Ten (10) percent of the Fund has been devoted to developmental objectives such a grants, capacity building and administrative costs while ninety (90) percent commercial component will be released to Participating Financial Institutions(PFIs) at 2% for on-lending to MSMEs at a maximum interest rate of 9% per annum.

Eligible activities to be financed 

  • Include agricultural value chain
  • Services
  • Cottage industries Artisans 
  • Trade 
  • commerce 

and any income generating business as may be prescribed by the CBN from time to time.

Objectives of the MSMEDF

The broad objective of the Fund is to channel low interest funds to the MSME sub-sector of the Nigerian economy through PFIs to:

  • Enhance access by MSMEs to financial services;
  • Increase productivity and output of microenterprises;
  • Increase employment and create wealth; 
  • Engender inclusive growth

You can also read:

Benefits of the MSMEDF to Some Stakeholders

(a) PFIs

The Developmental Components will be utilized for capacity building of staff of PFIs, research and provision of other financial services infrastructure

(b) MSMEs

Long term single digit loans at 9% p.a. This has resulted in reduced cost of borrowing which will impact positively on the earnings of the MSMEs

(c) Microfinance Sub-sector

The Fund will provide liquidity for the sub-sector and result in general improvement of the financial system stability

(d) General Public

Job creation

Eligible Activities under the MSMEDF

In line with the provisions of the Revised Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, enterprises to be funded under the Scheme include:

(a) Micro Enterprises

(b) Small and Medium Enterprises (SMEs)

The following are eligible activities under the Fund:

  • Micro Enterprises
  • Agricultural value chain activities
  • Cottage Industries
  • Artisans
  • Services
  • Renewable energy/energy efficient product and technologies
  • Trade and general commerce

Other economic activity as may be prescribed by the CBN

Note: Only 10% of the Commercial component of the Fund shall be channeled to trade and commerce.

Click on the link below to see frequently asked questions on Micro, Small and Medium Enterprises Development Fund.

Click click on the link below for related Press Release on CBN not selling forms for MSMEDF loans.

And also

Interested applicant should click here to  apply.

Agajahub publishers

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