ENTERPRISE54 – Various studies have shown lack of access to capital to be a major factor militating against entrepreneurs and growing startups. Aspiring entrepreneurs with bright ideas have been incapacitated by the resulting credit-crunch, and this has contributed to Nigeria’s increasing unemployment rate and low economic activity.

Enterprises and their entrepreneurs are to the economy what the cell is to the body. Furthermore, data available from the federal office of statistics show that these (Micro Small and Medium Scale Enterprises) MSME provide a large percentage of jobs and its inherent multiplier effect than even more that the public service itself. So assisting such a critical sector in the area of funding cannot be ignored or left to their fate.

It is in light of these developments that the Central Bank of Nigeria (CBN) in December 2005, introduced a Microfinance Policy Framework to help micro-entrepreneurs and low income households gain increased reach to financial services for business expansion and modernization of operations. The rationale was that no inclusive growth can be achieved without improving the access of this economic strata to factors of production, especially financial services.

Microfinance banks provide quick access to funds for entrepreneurs without collateral. The Nigerian government through her Central Bank, set policies, guidelines and gave out licenses for the establishment of Microfinance Banks.

According to the MD/CEO of Accion Microfinance Bank (AMfB), Ms. Bunmi Lawson, at a press briefing in Lagos, “some entrepreneurs are ignorant of the facilities being offered by the microfinance banks”.

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