Central Bank of Nigeria, CBN has directed banks to accept educational qualification certificates as collateral as part of its measures to ensure that beneficiaries make the N220 billion Micro Small and Medium Enterprises Development Fund, MSMEDF, more accessible.
This was included in the revised guideline for the disbursement of the N220 billion MSMEDF released by the Central Bank of Nigeria, CBN recently.
The CBN governor, Godwin Emefiele had recently revealed that only about 30 per cent of the fund, which was launched in 2013, has so far been disbursed. Emefiele speaking at the Bankers Committee Annual Retreat in Lagos had stressed the need to make funding available to young graduates by easing requirements.
The revised guideline realised by the apex bank states that for loans granted to start up businesses by deposit money banks and development finance institutions will have as collateral, “educational certificates such as SSCE; National Diploma, ND; National Certificate of Education, NCE; National Business and Technical Examination Board, NABTEB; Higher National Diploma, HND; university certificates and NYSC certificate where applicable and a guarantor. “
The guideline also states that for the start-ups to access the MSMEDF they must present their Bank Verification Number, BVN while “Venture Capital Firms, VCFs, that wish to finance start-ups in form of equity participation shall be eligible to access the MSMEDF at two per cent for investment in start-up projects. The collateral for such facility to the VCF shall be bank guarantee.”
The N220 billion MSMEDF was initiated by the CBN in order to address the financing gap in the MSME sector, with 60 per cent of cent of cent of fund targeted at women entrepreneurs. MSMEs can access the fund with an interest as low as nine per cert

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