Poor orientation is restraining disbursement of the N220 billion Micro,Small and Medium Enterprises Development Fund (MSMEDF) Lagos State Coordinator, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) Mr Yinka Fisher, disclosed this, while stating that the Central Bank of Nigeria (CBN) and Micro finance Banks have stopped the disbursement of the loans following logistics impediments.
Fisher said that the embargo was placed on the disbursement of the fund due to lack of collateral from the Small and Medium Enterprises (SMEs). According to him,
“The truth is that the disbursement of the fund has been placed on hold for now because most of the SMEs do not have presentable collateral and certificates of incorporation.
“The microfinance banks are complaining that they already have collateral with the Central Bank, but the SMEs approaching them for the loans are coming with un-presentable collateral, so with this, it is difficult for the microfinance banks to keep giving out the loans. “We are currently on reconciling terms with the CBN to figure out other means, but another major issue is that some of the SME owners are getting poor orientation about the loans,” he said
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