N3 506 DFD ACTIVITY REPORT FOR JULY 2014

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DEVELOPMENT FINANCE DEPARTMENT (DFD) – REPORT OF
THE ACTIVITIES OF THE BUSINESS UNIT FOR THE MONTH
OF JULY, 2014
We provide herewith, the activities of the Development Finance Department for
the month of July, 2014.
The activities undertaken by the Department in the period under review,
contributed towards achieving the mandate of the real sector growth, financial
inclusion and entrepreneurship development. The strategic initiatives
implemented included: the Nigeria Incentive-Based Risk Sharing System for
Agricultural Lending (NIRSAL), Commercial Agriculture Credit Scheme (CACS),
Agricultural Credit Guarantee Scheme Fund (ACGSF), Agricultural Credit
Support Scheme (ACSS), Interest Drawback Programme (IDP), Microfinance
Policy, Financial Inclusion, Entrepreneurship Development, Power and Airline
Intervention Fund (PAIF), Small and Medium Enterprises Credit Guarantee
Scheme (SMECGS) and SME Restructuring/Refinancing. Part 1 of the report
reviews the real sector interventions; Part 2 highlights financial inclusion
activities, while Part 3 dwells on entrepreneurship development initiatives and
commodity promotion activities of the Department.
PART ONE: REAL SECTOR INTERVENTION INITIATIVES
1.1 Nigeria Incentive-Based Risk Sharing System for Agricultural Lending
(NIRSAL)
NIRSAL is a mechanism designed to provide farmers with affordable financial
products and reduce the risk of exposure of financial institutions that lend to
the sector. It will also build the capacities of banks to lend to agriculture as well
as provide incentives for those that are financing the sector.
1.1.1 Highlight of Activities/Achievements
 No Credit Risk Guarantee (CRG) was issued during the month. Cumulatively,
forty six (46) Credit Risk Guarantee cover valued N16.280 billion were
issued from inception to date.
 Twenty one (21) GES CRGs valued N3.506 billion were approved through
six (6) banks under the 2014 NIRSAL-GES Framework within the period
under review. This brings the cumulative disbursed funds under NIRSAL to
N29.064 Billion in respect of 158 projects.
 IDB claims are paid quarterly in respect of each of the projects. Cumulatively,
25 projects have benefited under the IDB till date. During the period under
1

review, IDB claims valued N6.080million were processed and paid, bringing
the total IDB claims paid under NIRSAL to N205.69million.
 No IDB was paid within the period under review. Total GES IDP paid to date
stood at N242.840 million for 73 projects.
 Collaborated with GIZ on Farmers’ Business School (FSB) Programme to
train farmers in primary production segment in Niger State for the month. 19
extension agents were trained under the “Train the Trainer’s workshop” and
the trained agents would train 500 rice farmers under the scheme.
 Organized a stakeholder’s meeting between Bankers, Cocoa Farmers
Association of Nigeria (CFAN) and off-takers (Armajaro, Yero International,
Olam etc) at CBN Akure on 18th July, 2014 to anchor financing relationship
between the lenders, borrowers and off-takers.
 Held a meeting with representatives of AFEX Commodity Exchange Limited
on 22nd July, 2014 at CBN Headquarters, Abuja to discuss partnership
between NIRSAL/AFEX in unveiling the guarantee to stakeholders involved
in warehousing receipt financing in Nigeria.
1.1.2 Challenges

 Validity of information provided by counter parties for Credit Risk
Guarantee;
 Low public awareness and poor perception of NIRSAL
 Logistic limitation in respect of movement to NIRSAL head office
 Developing a guarantee structured for the warehousing receipt finance
operators in Nigeria
1.1.3 Going Forward

 Guarantee to be extended only to projects with fixed value chain.
 NIRSAL exit from CBN decision still pending with Management.
 Continue to collaborate with stakeholders on the way forward
 Keep track to ensure that the 500 rice farmers were trained by
the extension agents under the Train the Trainer’s Programme.
1.2 Commercial Agriculture Credit Scheme (CACS)
The Commercial Agriculture Credit Scheme (CACS) was established to finance
large ticket projects along the agricultural value chain. The Scheme is being
administered at a single digit rate of 9 per cent to beneficiaries for a period of
seven years, which has been extended by the COG to 2025. State Governments,
including the FCT can access a maximum of N1.0 billion each for on- lending to
farmers’ cooperatives or other areas of agricultural intervention. In the period
under review, the following were carried out:
2

1.2.1 Highlight of Activities/Achievements
 No fund was released from CACS Receivables Accounts during the period
under review. However, the sum of N236.969 billion has so far been released
to the economy under CACS in respect of 313 projects through twenty (20)
banks made up of N199.831 billion from CACS Receivable Account for 273
projects and N37.138 billion from CACS Repayment Account for 40 new
projects and 18 enhancements.
 The sum of N2.684billion was released from the CACS Repayment account
to five (5) participating banks for six (6) new projects in July, 2014.
 313 beneficiaries made up of 282 private promoters and 31 State
Governments projects has been sponsored under CACS. The sum of N43.0
billion has been accessed by 30 State Governments and the FCT.
 The sum of N457.7 million was repaid by three (3) banks in respect of
seven (7) projects during the month, bringing the total repayment to
N40.801billion in respect of 83 projects.
 The balance on CACS Fund as at end of July, 2014 was N0.169 billion
 The balance on CACS Repayment Account as at end July, 2014 was N3.662
billion.
 No bank was sanctioned for infraction on the CACS Guidelines during the
month. However, the total penalty charged for infractions, stood at N1.242
billion from inception in 2009 to July, 2014.
 From inception in 2009 to date, about 165,803 jobs have been created
through the Scheme;
 Two out of the 282 private projects are wholly owned and managed by
women.
 The Committee of Governors at its 343rd meeting approved extension of
CACS exit date from 2016 to 2025.

Table 1: Total Disbursements by Banks under CACS.
Receivable from DMBs
Accounts

Repayment Account
Projects

Projects

Amount
Released to
Banks (N'Bn)

10.326

2.30

12.626

3 Diamond Bank

2.744

0.3

3.044

4 EcoBank Plc

3.82

0.64

4.46

5 Enterprise Bank

0.519

6 Fidelity Bank Plc
First Bank of
7
Nigeria
First City
8
Monument Bank
Guaranty Trust
9
Bank Plc
10 Heritage Bank

8.575

2.275

10.85

22.359

4.740

27.099

4.785

0.57

5.355

5.8

1.172

11 Mainstreet Bank

12 Keystone Bank

0.2

1.905

2.105

13 Skye Bank Plc

9.217

0.375

9.592

14 Stanbic IBTC

11.742

2.522

14.264

15 Sterling Bank

7.193

5.469

12.662

16 Union Bank Plc
United Bank for
17
Africa Plc
18 Unity Bank Plc

18.167

41.757

19.932

2.35

22.282

19 Wema Bank

0.74

0.37

1.11

20 Zenith Bank Plc

26.955

12.15

39.105

273

199.831

37.138

236.969

Financing Bank
Access Bank
Nigeria Plc
2 Citibank
1

Total

New Project
Enhancement

Amount
released
(N'Bn)

Total
Amount
Released

Analysis of CACS performance by value chain showed that out of the 282
CACS private sector sponsored projects (from both receivable and
Repayment Accounts), production dominated the activities funded with
50.71%, followed by processing which accounted for 38.65%, while
marketing, storage and Input supplies accounted for 5.67%, 4.61% and
0.35% respectively.
In terms of the volume of funds released, processing accounted for 49.9%,
followed by production which accounted for 34.9%. Marketing, storage and
input supplies accounted for 10.8%, 4.1% and 0.3% respectively (Table 2)
4

Table 2: Analysis of CACS Financed Private Projects by Value Chain as at July, 2014.

Category

Number (%) of Projects

Value {N ’billions and %}

Input Supplies

1 (0.35%)

0.564 (0.3%)

Production

143 (50.71%)

67.605 {34.9%}

Processing

109 (38.65%)

96.842 {49.9%}

Marketing

16 (5.67%)

20.911 {10.8%}

Storage

13 (4.61%)

8.047 {4.1%}

282

193.969

Total

Fig. 1: Distribution of CACS Funds by Value Chain

1.2.2 Challenges



Non-adherance to CACS guidelines by banks.
Poor monitoring of projects by some participating banks.

1.2.3

Going Forward



Improved monitoring of CACS projects by CBN.



Impact Assessment to ascertain the actual gains of CACS.



Need to conduct documentary exercise to sensitize the public on CACS.

1.3 Agricultural Credit Guarantee Scheme (ACGS)
The ACGS was established in 1977 to provide 75 per cent guarantee for loans
granted to the agricultural sector by Banks. The Scheme pays 75 per cent of any
outstanding default balance to the bank after the security pledged has been
realized.
1.3.1 Loans Guaranteed
As at July 2014, a total of 6,652 loans valued N1.144 billion was granted by
three (3) Deposit Money Banks and 46 Microfinance banks compared to 8,251
loans valued N1.472 billion guaranteed in June, 2014. This showed a decrease of
1,599 or 19.38% and N328 million or 22.28% in number and value
respectively. The total loans guaranteed from inception in 1978 to July, 2014 is
901,606 valued N78.543 billion.(Table 3)
The Performance of ACGS in the month of July, 2014:

PARAMETERS
1.Guaranteed
Loans

July, 2014 POSITION

June, 2014 POSITION

Guaranteed 6,652 loans valued N1.14 billion in
July, 2014 as against 8,251 loans valued N1.472
billion guaranteed during the same period in June,
2014. This showed a decrease of 1,599 or
19.38% and N328 million or 22.28% in number
and value respectively.

Guaranteed 8,251 loans valued N1.472 billion
in June, 2014 as against 4,811 loans valued
N997.085 million guaranteed during the same
period in May, 2014. This showed an
increase of 3,440 or 71.50% in number and
an increase of N475 million or 47.64% in
value.

The total loans guaranteed from inception in The total loans guaranteed from inception in
1978 to July, 2014 is 901,606 valued N78.54 1978 to June, 2014 is 894,954 valued
billion.
N77.399 billion.
2. Number of
Loans
Guaranteed
ranked on State
Basis

July, 2014: The breakdown of the July, 2014 June, 2014: The breakdown of the June,
performance is as follows:
2014 performance is as follows:
Highest: Niger State with 905 (13.60%) valued Highest: Sokoto State with 1,162 (14.08%)
N46.60 million (4.07%).
valued N101.937 million (6.92%).
Second: Adamawa State with 902 loans
(13.56%) valued N140.31 million (12.26%).

Second: Kebbi State with 1,103 loans
(13.37%) valued N145.335 million (9.87%).

Third: Delta State with 690 loans (10.37%) Third: Delta State with 1,040 loans (12.60%)
valued N145.19 million (12.69%).
valued N176.157 million (11.97%).
6

3. Number of
Loans
Guaranteed by
Size of Loan

July, 2014 - The breakdown of the July, 2014 June, 2014 - The breakdown of the June,
performance is as follows:
2014 performance is as follows:
N5,000 and below = 36 loans valued N0.178m

N5,000 and below = nil

N5,001 - N20,000 = 498 loans valued N7.72m

N5,001 - N20,000 = 525 loans valued
N8.509m

N20,001-N50,000 =1,640 loans valued N50.49m
N50,001-N100,000=1,638
N136.89m
Above N100,000
N949.13mn

4. Number of
Loans
Guaranteed by
Category of
Loan

5. Loans
Guaranteed by
Purpose

N20,001-N50,000 = 1,646 loans valued
valued N67.731m

loans
2,840

loans

N50,001-N100,000 = 2,618 loans valued
valued N236.457m
Above N100,000 = 3,462 loans valued
N1.159bn

July, 2014 - The breakdown of the performance is June, 2014 - The breakdown of the
as follows:
performance is as follows:
Individuals = 6,020 loans valued N924.48mn

Individuals = 8,218 loans valued N1.441bn

Informal Groups = 58 loans valued N20.56m

Informal Groups = 12 loans valued N2.250m

Co-operatives = 573 loans valued N198.88m

Co-operatives = 7 loans valued N21.380m

Companies = 1 loan valued N0.50m

Companies = 14 loans valued N7.500m

July, 2014 - The breakdown of loans granted by June, 2014 - The breakdown of loans
purpose is the following:
granted by purpose is the following:
Livestock = 578 loans valued N167.99m

Livestock = 892 loans valued N 345.004m

Fisheries = 151 loans valued N72.35m

Fisheries = 152 loans valued N47.570m

Mixed crops = 456 loans valued N86.02m

Mixed crops = 793 loans valued N97.876m

Food Crops = 5,291 loans valued N760.25m

Food Crops
N838.501m

Cash Crops = 113 loans valued N20.17m
Others = 63 loans valued N37.64m
6. Loan
Repayment

5,521

loans

valued

Cash Crops = 759 loans valued N107.675m
Others = 134 loans valued N35.500m

A total of 3,538 loans valued N553.891 million
was fully repaid under the Scheme in July, 2014 as
against 3,665 loans valued N490.860mn that was
recovered in June, 2014. This brings the
cumulative fully repaid loans from inception to July,
2014 to 674,095 valued N53.040 billion.

A total of 3,665 loans valued N490.860
million was fully repaid under the Scheme in
June, 2014 as against 2,333 loans valued
N542.785mn that was recovered in June,
2014. This brings the cumulative fully repaid
loans from inception to June, 2014 to 670,557
valued N52.486 billion.

7. Loans
Repayment by
State

July, 2014 - The breakdown of performance is as June, 2014 - The breakdown of performance
follows:
is as follows:
Highest: Sokoto State with 769 loans (21.74%) Highest: Kwara State with 863 loans
valued N100.89m (18.21%).
(23.55%) valued N69.389m (14.14%).
Second: Adamawa State with 677 loans (19.14%) Second: Zamfara State with 588 loans
valued N48.93m (8.83%).
(16.04%) valued N30.042m (6.12%).
Third: Kano State with 569 loans (16.08%) valued Third: Taraba State with 528 loans (14.41%)
N78.88m (14.24%).
valued N21.840m (4.45%).

8. ACGSF
Claims Settled

9. IDP Claims
Settled

10. Banks’
Performance
under the
ACGS

No ACGSF claim was settled in July, 2014.
However, the cumulative number of settled claims
from inception to date is 14,691 valued N546.932
million

No ACGSF claim was settled in June, 2014.
However, the cumulative number of settled
claims from inception to date is 14,691 valued
N546.932 million

No IDP claim was settled in July,2014. However,
the total number and value of IDP claims settled
since inception in 2003 to July 2014 is 246,426
valued N1.94 billion.

No IDP claim was settled in June,2014.
However, the total number and value of IDP
claims settled since inception in 2003 to June
2014 is 246,426 valued N1.936 billion.

Performance of banks under the ACGS as at July Performance of banks under the ACGS as
2014:
at June 2014:
(i) Banks

(i) Banks

3 Banks granted a total of 1,754 loans valued
N645.03million under the ACGS as at end of
July,2014. The breakdown of the disbursements by
the banks is as follows: First Bank of Nigeria
(FBN) Plc. {375 loans valued N171.499m};
Keystone Bank {150 loans valued N31.500m} and
Union Bank of Nigeria {1,229 loans valued
N442.030m); and

4 Banks granted a total of 2,039 loans valued
N667.04million under the ACGS as at end of
June,2014. The breakdown of the
disbursements by the banks is as follows:
First Bank of Nigeria (FBN) Plc. {378 loans
valued N163.010m}; IBTC Stanbic.: {1 loan
valued 0.300m}; Keystone Bank {10 loans
valued N2.0m} and Union Bank of Nigeria
{1,650 loans valued N501.731m); and

(ii)Microfinance Banks (MFBs)

46 MFBs granted a total of 4,898 loans valued 70 MFBs granted a total of 6,212 loans
N499.39million under the ACGS in July, 2014.
valued N805.085million under the ACGS in
June, 2014.
8

11. Number of
Memoranda of
Understanding
(MOUs) signed
under the Trust
Fund Model.

No new Memorandum of Understanding (MOU)
was signed by the Department under the TFM
during the period under review. However, 58
Stakeholders made up of State Governments,
Multinational Agencies, LGAs, NGOs and
Individuals signed MOUs under the programme
and placed/ pledged a total sum of N5.654 billion.

No new Memorandum of Understanding
(MOU) was signed by the Department under
the TFM during the period under review.
However, 58 Stakeholders made up of State
Governments, Multinational Agencies, LGAs,
NGOs and Individuals signed MOUs under
the programme and placed/ pledged a total
sum of N5.654 billion.

12. ACGSF
Resources

The total resources of the ACGSF as at July of 2014
stood at N6.140billion.

The total resources of the ACGSF as at June of
2014 stood at N6.140billion.

13. IDP
Resourc
es

The value of the total resources of IDP at the end of
July 2014 was N1.762 billion.

The value of the total resources of IDP at the end
of June 2014 was N1.762 billion.

14. Expenses
Recoverable
Payable to the
Managing
Agent (CBN)

The recoverable expenses incurred by the
Development Finance Offices and Head Office under
ACGSF for the month of July, 2014 amount to N54.099
million.

The recoverable expenses incurred by the
Development Finance Offices and Head Office
under ACGSF for the month of June, 2014
amount to N54.82 million.

1.3.2 DISTRIBUTION OF GUARANTEED LOANS BY STATE
The analysis of loans guaranteed indicated that Niger State granted the highest
number of loans with 905 loans, followed by Adamawa and Delta States
which granted 902 and 690 loans respectively, during the period under review
(Fig 2)
Fig. 2: Distribution of Loans Guaranteed by States and Number as at July, 2014
905

902

690
575

536

509

497
399
280

61 71

97
14

135 130
100
7

150
42

60 73 62

49
9

The analysis of loans guaranteed by value indicated that Delta State granted the
highest with N145.19million followed by Adamawa and Kwara States which
granted N140.31million and N131.91 million respectively, (Fig.3)

4,690
30,745

33,000
46,600
15,370
5,810
6,240
3,880
20,705
45,150

131,905
30,900

67,966
7,310
4,000

42,769
40,000

38,460
17,450
42,815

105,300
2,860

7,736

35,069
1,850

36,300
5,100

13,180
15,760

140,308

145,190

Fig. 3: Distribution of Loans Guaranteed by States and Value as at July, 2014

1.3.3 DISTRIBUTION OF LOANS BY PURPOSE
The distribution of number of the loans guaranteed by purpose indicated that
Food Crops accounted for 5,291 loans (79 per cent), followed by Livestoock and
Mixed Farming which recorded 578 loans (9 per cent) and 456 loans (7 per
cent) respectively. Fisheries, Cash Crops and Others recorded 151 loans (2 per
cent), 113 loans (2 per cent) and 63 loans ( 1 percent) respectively (Fig 4.)
Fig. 4: Distribution of Loans Guaranteed by Purpose as at July, 2014

Livestock, 578 , 9%
Cash crops, 113 , 2%

Others, 63 , 1%

Fisheries, 151 , 2%
Mixed Farming, 456 ,
7%

Food Crops, 5,291
, 79%

Livestock

Fisheries

Mixed Farming

Food Crops

Cash crops

Others

1.3.4 Analysis of Loans Guaranteed by Gender of Borrowers
In July, 2014, a total of 4,901 male beneficiaries obtained loans under the ACGS,
amounting to N824.07m, while 1,708 female borrowers received N307.16
million.
4,901
5,000
1,708
MALE
-

FEMALE
MALE
FEMALE

1.3.5 LOANS ANALYSIS BY GEO-POLITICAL ZONES
Analysis of number of loans guaranteed by States in the geo-political zones in
July 2014, showed that the North- Central comprising of Abuja, Benue, Kogi,
Kwara, Nassarawa, Niger and Plateau States guaranteed the highest with 1,715
loans valued N257.13 million, followed by the North-East (Adamawa, Bauchi,
Borno, Gombe, Taraba, came with 1,551 loans valued N197.52 million. The
North-West zone comprising (Kaduna, Kano, Katsina, Kebbi, Jigawa, Sokoto and
Zamfara States), which guaranteed 1,391 loans valued N168.79 million,
(Fig.5).
Fig. 5: Distribution of Loans Guaranteed by Number and Geo-Political
Zones In July, 2014
2000

1,715
1,551

1,391

1,292

1500
1000
440

263

500
0
North
Central

North East

North West

South East

South South

South West

1.3.6 Loans Repayment
A total of 3,538 loans valued N553.89 million was fully repaid under the
Scheme in July, 2014 as against 3,665 loans valued N490.86m that was
recovered in June, 2014. This shows a decrease of 127 (3.47%) in number and
an increase of N63.03m (12.84%) and value when compared with repayments
11

in June, 2014.This brings the cumulative fully repaid loans from inception to
July, 2014 to 674,095 valued N53.04 billion.
An analysis of repayment by States showed that Sokoto State had the highest
with 769 loans which represents 21.74 per cent in number, followed by
Adamawa and Kano States which recorded 677 and 569 loans, respectively,
representing 19.14 per cent and 16.08 per cent in number respectively.
Fig. 6: Distribution of Loans Repaid by States and Number as at July, 2014 (N ‘000)
900
769

800

677

700

569

600
500
347

400

254

300

186

200

100
-

94
9 2

115
4 21

1 18

95
30

1.3.6.1 Loans Repayment by Gender
In July,2014, the analysis of repayment by gender of borrowers (Fig: 7), showed
that 2,810 (79.42%) which represented male beneficiaries repaid N433.77
million (78.31%) while, 711 loans (20.10%) valued N101.68million (18.36%)
were repaid by female borrowers.
Fig: 7: Distribution of Loans Repaid by Gender July, 2014
3,000

2,810

2,500
2,000
MALE

1,500

711

1,000
500
-

MALE

FEMALE

1.3.6.2 Loans Repayment by States/Geo-Political Zones.
Analysis of loan repayments on geo-political zone basis in July, 2014, revealed
North-West comprising Jigawa, Kaduna, Kano, Katsina, Kebbi, Sokoto and
Zamfara States, repaid the highest with 1,498 loans valued N214.03 million,
followed by with the North-East (Adamawa, Bauchi, Borno, Gombe, Taraba
states with 701 loans valued N53.61m. South-East comprising Abia,
Anambra, Ebonyi, Enugu and Imo States came in third with 501 loans
amounting to N130.99 million. (Fig: 8).
Fig: 8: Distribution of Loans Repaid by Geo-Political Zones and Number
July, 2014
1,498
1500
1000

701
501

500

351

366

121

0
North
Central

North East

North West

South East

South South South West

1.3.6 ACGSF Claims Settlement
No ACGSF claim was settled in July, 2014. However, the cumulative number of
settled claims from inception to date is 14,691 valued N546.93 million
1.3.7 Interest Draw-Back Programme (IDP) Claims Settlement
No IDP claim was settled in July,2014. However, the total number and value of
IDP claims settled since inception in 2003 to June 2014 is 246,426 valued N1.94
billion.
1.3.8 Agricultural Credit Support Scheme (ACSS)
The Agricultural Credit Support Scheme was established to finance large ticket
agricultural projects with an interest rebate of 6 per cent upon timely
repayment of the facility. As at end July 2014, no rebate was paid, however the
total rebate paid from inception stood at N876.79 million for 46 projects.
1.4 N200 Billion SME Credit Guarantee Scheme (SMECGS)
The N200 Billion Small and Medium Enterprises Credit Guarantee Scheme
(SMECGS) was established in April 2010 to fast-track the development of the
manufacturing and SME sub-sector by providing guarantee for banks’ credit.
The activities covered under the Scheme include Manufacturing, Agricultural
Value Chain and Educational Institutions.
13

 In July, 2014, no project was guaranteed under the scheme. However, the
total number of projects guaranteed since inception stood at 76 (Seventysix), valued N3.37 billion.
 No repayment was made in the month of July, 2014. The total number of
fully repaid projects stood at 29 valued N1.79 billion since inception to
date.
1.5 N200 Billion SME Restructuring/Refinancing Fund (RRF)
The N200 Billion SME Restructuring /Refinancing Fund (RRF) was established
by the Central Bank of Nigeria (CBN) in March, 2010 to re-finance and
restructure banks’ existing loan portfolios to manufacturers to achieve doubledigit growth in line with the FSS 2020 SME financing target of 20 per cent of
total credit to the economy.
1.5.1 UPDATE ON SME/RRF
 No fund was released to BOI in the month of July, 2014.
 The total sum of N288.98 billion had been released to BOI, and disbursed
to 573 projects from inception to date.
 In July 2014, no fund was disbursed from the repayment account. However,
the total fund disbursed for projects under SMERRF stood at N71.73
billion.

1.6 Power and Airline Intervention Fund (PAIF)

The sum of N500 billion was approved by the Monetary Policy Committee in
2010 for investments in debentures issued by the Bank of Industry (BOI) out of
which the sum of N300 billion would finance power and airline projects and
N200 billion for RRF. PAIF was designed as part of the quantitative easing
measure to address the paucity of long-term credit and acute power shortage in
the country.
1.6.1 Updates
 No fund was disbursed under the Power and Airline Intervention Fund
(PAIF) in July, 2014. However, the sum of N233.161 billion had been
released to BOI and disbursed through participating banks to 51 projects
(36 power projects received N115.734 billion while 15 airline projects
obtained N117.427 billion) from inception to date (Tables 4 & 5).

Table 4 - Summary of Funds Released to BOI since inception
APPROVED FUND

2010
As at July, 2014

(N)300.00 Billion (N)

Net Amount Released (N)

233.161 billion

Total Amount Disbursed to Banks

233.161 billion

-do-

Amount Approved for Release to BOI

237.23 billion

-do-

Balance of un-utilized PAIF fund

62.77 billion

-do-

(N)

Table 5: Summary of Projects/fund approved for release to BOI as at July, 2014
Type
No. of Obligors No. of Projects
Amount (N)
Airline projects

Power projects

Total

117,427,097,372.74
115,734,395,792.85
233,161,493,165.59

1.6.2 PAIF LOAN REPAYMENT
 The sum of N852.83 million was repaid and remitted by the BOI to CBN
under PAIF during the period.
 The total fund repaid under PAIF since inception stood at N33.216 billion.
PART TWO: ENTREPRENEURSHIP DEVELOPMENT INITIATIVES
Entrepreneurship Development Centres (EDC)
The Entrepreneurship Development Centers were initiated by the bank to
unleash the entrepreneurial spirit of youths to own/set up their businesses,
create employment and reduce poverty.
2.1

Activities:

 The Department invested the sum of N136, 280,233.50 million in Nigeria
Treasury Bill for 182 days on a roll-over basis. The amount is the accrued
fund from the commitment fee of N5, 000 paid by each of the trainees at
training inception.
 The Field Inspection was carried out in Gombe State during the period in
respect of the hosting of CBN-EDC outreach centre for the North-East geopolitical zone. The facilities inspected were adequate and appropriate for
implementation.
 Timeline of 2months was agreed for the take-off of the centre.
15

 As at July, 2014, the existing EDCs located in North-East (Maiduguri), NorthCentral (Makurdi) and South-South (Calabar) trained 1,540 out of a target of
1,500. This represents 102.67% of the target (57.27% male and 42.73%
female).
 Cumulatively from inception; 7,288 were trained from inception (4,650
male and 2,638 female),
 1,514 accessed a total of N126,575,000 million as loan to their businesses
and
 3,734 jobs were created from inception.
2.1.1 Challenges
 Keeping to the timeline and securing stakeholders buy-in.
 Keeping to timeline in selecting consultants to operate the centers.
 Identifying the financing products for the EDC Graduates to key-in.
2.1.2 Going Forward
 Engaging the would-be host State governments to operate under the
Tripartite Agreement.
 Consultants to be selected, approved and engaged by Management to
operate the Centres.
 Continue to sensitize the National, State and community on effective
advocacy and prudent use of the funds.
2.2

MICROFINANCE MANAGEMENT

2.2.1 Held a Meeting with the IFAD/RUFIN implementing Departments of the
Bank (Other Financial Institutions Supervision and Research
Departments) to review the report submitted by the Consultant engaged
to assess institutional capacity and strategic plans for the Apex Associates
at (NAMB & ANMFIN) Microfinance Bank & Non-Bank MFI Apex
Associations.
Some of the amendments recommended for the ANMFIN Constitution
include:
 Appointment of External Auditor by National Executive Council (NEC) taking
the new tenure into cognizance
 Review of signatories to ANMFIN bank accounts
 Discontinuation of Zonal structure
 Removal of power to the management of MFIs.
 Development of exit strategy for RUFIN project and release of report and
recommendations of the Committee for Managements’ consideration.

2.2.2 The Department participated at the 21st meeting of the Microfinance
Advisory Board (MAB) on July 10, 2014.
Presentations were made to provide updates on the following: Microfinance Certification Programme,
 Financial Inclusion Secretariat
 Database of Non-Bank MFIs
 ANMFIN activities
 Creation of website for MAB
 Micro, Small and Medium Enterprises Development Fund (MSMEDF) and
 Annual Microfinance Conference to be held in August, 2014.
2.2.3 Going Forward
 Follow up on the NAMB’s amendment to ensure compliance by the bank.
 Review of ANMFIN constitution and activities to be held in due course
 To assess the activities of NAMB and ANMFIN and suggest way forward.
2.3

MSME DEVELOPMENT FUND (MSMEDF)

2.3.1 Inaugural meeting of the Microfinance Sub-sector was held on July 1,
2014 and the meeting deliberated on Terms of Reference, which includes:






Identify and develop a Sustainable Credit administration
Developing an effective loan management
Developing a model for rendering returns and monitoring
Build up a Biometrics Data capture; and
Create a methodology for appraising loan applications

2.3.2 The Department held a meeting on July 1st, 2014 with participating
Financial Institutions (PFIs) under MSMEDF to keep them abreast with
the changes effected in the reviewed Guidelines.
The amendments include:
 Allowing the DMB’S under the fund as participating Financial Institution
(PFIs) to access funds for disbursement to SMEs.
 Reviewed the fund ratio from 80:20 to 50:50 for SME and Micro enterprises
respectively, while 2% was earmarked for persons with disabilities
excluding mental disabilities.
2.3.3 Signing of Memorandum of Understanding between CBN and State
Governments under the MSME Development Fund
 The Bank signed the Memorandum of Understanding (MoU) with State
governments under the MSMEDF on 24th July, 2014, with 11 State
Governments; Akwa Ibom, Delta, Oyo, Osun, Bayelsa, Borno, Gombe,
Enugu, Zamfara, Ondo, and Benue were in attendance.
17

 In his speech, the CBN Governor stated that the President of the Federal
Republic of Nigeria will kick off the disbursement of the fund at the MSME
conference in August, 2014.
2.3.3 Challenges
 Embarking on awareness exercise on the MSMEDF to achieve wider
outreach
 To emphasize prompt repayment for appropriate fund tunneling.
 Secure the buy-in of State Govts/FCT in respect of MSMEDF
 Enlightenment of the Participating Financing Institution on modalities for
accessing funding from the PFIs under the programme, and the need for
prompt repayment.
2.3.4 Going Forward
 To chart a way forward towards sustainable financial management,
procurement and strategic direction for the Programme.
 Continue to collaborate with the Stakeholders on the way forward

PART THREE:

FINANCIAL INCLUSION ACTIVITIES (FI)

Financial Inclusion is the delivery of financial services at affordable prices and
terms to the generality of the populace especially the disadvantaged and low
income segment of the society.
During the period under review, a number of activities were carried out. Some
of these include:
3.1

FINANCIAL INCLUSION SENSITIZATION VISITS TO STAKEHOLDERS

The Department held several meetings with stakeholders on the progress of the
FI functions assigned to them.
Some of the key resolutions include the following:
• Setting up a specific Financial Inclusion Unit to liaise with the CBN by NDIC
• PENCOM was directed to create awareness on pensions to the informal
sector through their various associations.
• Creating awareness amongst the Micro Finance Banks by NAICOM on the
needs and benefits of Micro insurance; and
• Federal Ministry of Communications Technology was directed to appoint a
desk officer to liaise with the FI Secretariat of the CBN on FI related matters.
3.1.1 MEETING ON FINANCIAL INCLUSION FOR SMEs- CAPITAL MARKET
OPTIONS
The Department held a workshop during the period for MSME, SEC, NSE,
Capital market Operators and SMEDAN to discuss issues regarding the funding
of SMEs.
18






The following were some of the resolutions during the forum;
The need for a structured FI campaign to target entrepreneurs by the
stakeholders.
Creating a fund to support listing of MSMEs as a condition for accessing the
capital market by CBN
Setting aside a section of the N220 Billion MSMEDF from where Venture
Capital Firms can draw wholesale for investing in the MSMEs sector
The need for SMEDAN to espouse SME aggregators in order to educate
MSMEs on a more nationwide scale.

3.1.2 PARTICIPATING IN THE LAUNCH OF THE FCMB AGENT BANKING
SCHEME
The Department was invited by FCMB to the launch of their Agent –banking
scheme on July 9th, 2014 at Otta, Ogun State.
Impact of the Scheme on the Community:
 48 excluded residents were financially included through account opening
during the launching.
 FCMB will continue to promote FI through opening 8 more Agent points in
Ogun/Lagos states and 20 points in Abuja, Kaduna and Awka by the end of
the Month.
3.1.3 FINANCIAL INCLUSION WORKSHOP AND ROADSHOW IN OSUN AND
OGUN STATE
The Department hosted a workshop for all Financial Institutions in Osun and
Ogun States.
Impact:
 246 new Bank accounts were opened in Osun State, thus bringing the
unbanked into the formal financial sector.
3.1.4 Challenges
 Lack of motivation on the side of the DMBs to execute the Financial
Inclusion Strategy as it is not perceived as being profitable
 Insecurity in some parts of the country hindering implementation of the
strategy
 Business plans for implementation of the strategy was requested from
Deposit Money Banks and they were yet to fully comply with the request.
 There was a time lag between requests for financial inclusion data from
relevant Departments in the Bank and actual provision. The obvious
implication is non-provision of accurate and up-to-date data by the
Secretariat which hampers the ability of the Secretariat to fully provide an
accurate up to date position on financial inclusion on a quarterly basis.

3.1.5 Going Forward

 Continue to promote Global Financial Inclusion.
 There should be continuous sensitization and collaboration with the various
stakeholders to create more awareness on their roles and responsibilities
and to encourage them to perform them.

Compiled by:
Board Matters & Publications Office,
Development Finance Department,
Central Bank of Nigeria,
Abuja.
JULY, 2014

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N3 506 DFD ACTIVITY REPORT FOR JULY 2014

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