Can you be an entrepreneur?

There are people who are happy with being a worker till they retire, and there are some who likes to be their own chairperson and starts up a business. Though, it does not mean that one person trumps the other, there are lots of personality differences between the two. Really, there are personality tests available online that one can take to identify their personality characteristics and learn whether or not you have what it takes to be an entrepreneur.

Though lots of entrepreneurs differ in their style and perspective, there are some common traits that make one a successful businessman.

1. Hard working

this is a characteristic that every entrepreneur should have. Having non-stop energy to do a large amount of work and multitasking while a pile tasks here and there should be done to achieve your goals. If it suggests, work double time? Then, do work double time!

2. Positive attitude

it isn't assured that when you are into a business you'll always be good and no Problems will come, there will be issues and complications and these things are the ones that are going to shape you up to be a successful entrepreneur. Being pessimistic? There's no room for that! You want to know the way to deal with even the darkest times of your life for it would occur again.

3. Sense of commitment

Whatever you do, you should be committed to doing the absolute best you can and achieve what is predicted of you and for the business. It is tantamount to sense of professionalism, which is quite significant when you go to the outside world.

4. Goal-oriented

what good a business is, if there are no goals to live from? It is as if going out in battle without knowing what to do next. Setting up goals for your business is crucial since all of the activities revolved around the goals.

5. Passionate about reaching such goals

what good goals are if not achieved? Be sure that when you set targets, it's realistic and doable. You need be obsessed about what you do and have a thrust to keep you pushing forward to reach your goals.

6. Perseverance

Business includes lots of challenges. It's very likely that you're going to fail first time, even 2nd time, and sometimes even third time. Perseverance is the key to success here. Successful entrepreneurs try to benefit from their mistakes and never give up. Learn from PMB's struggle to be the president of Nigeria. 

To be an entrepreneur you also must have a business idea, a clear appreciation of a difficulty you are trying to solve and some system in mind how you'll take it to the market. Just having above discussed traits doesn't guarantee that you are going to be a successful entrepreneur but certainly sets you aside from others, help you face difficult challenges, and save you from falling down on your face.

Is entrepreneurship for you? I don't know. You've got to answer that for yourself. Ask yourself whether you some who likes to follow or who likes to guide, whether you like to do things your way or you mostly need guidance, whether you want to be managed or you are self-motivated. There are many such self-evaluations you can do yourself. But definitely, if you're a sort of person who likes new challenges each day, can fly in thin air, and lead without any direction; then you've a greater chance of succeeding as an entrepreneur. If you've got a business idea lurking deep within you, it's high time to try it out because that's the first thing an entrepreneur would say lets try it, let's do it.

Culled from here:http://www.nairaland.com/3116423/entrepreneurship-it

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Bank Of Industry to Provide loan for more Graduate under its YES program.

Following the turnout of applicants for its N10 billion facility earmarked for on-lending to small businesses under the Youth Entrepreneurship Support (YES) programme, the Bank of Industry (BoI) has concluded plans to expand the fund size as well as accommodate more candidates under the scheme.

Specifically, the bank noted that due to the high rate of applications received for the YES initiative, it would increase the size of the fund from the initial N10 billion, while considering an increase in the number of would-be loan beneficiaries from 1,200 yearly to 4,000 candidates.

Speaking at the assessment exercise of the initiative and inauguration of a seven-man panel to serve on the application screening committee in Lagos, BoI’s Acting Managing Director, Waheed Olagunju, noted that out of the 40,000 applications received, 15,000 or 37.5 per cent were properly completed and thus qualify for consideration for the first segment of the entrepreneurship capacity building programme which is the eight weeks online training component.

“This programme was launched in response to the alarming unemployment problem among Nigerian youths. Having noticed the huge volume of registration on the online portal of 40,000 which has far outstripped the 10,000 entries earlier envisaged by 300 per cent over the six-week period, we have come to the realisation that Nigerian youths have enormous entrepreneurial appetite waiting to be unleashed on the nation’s economy in a positive sense.

“We have therefore come to the conclusion that we should provide more opportunities for the youth by increasing the number of would-be loan beneficiaries from 1200 to 4000. Efforts would be made to ensure a fair distribution of the beneficiaries in consonance with the proportion of entries received from the six geopolitical zones”, Olagunju added.

Minister of Industry, Trade and Investment, Dr. Okechukwu E. Enelamah, while inaugurating the committee, commended the bank for the initiative, saying, “I am quite satisfied with the implementation of the YES-Programme thus far, considering the calibre and quality of the facilitating institutions. The candidates’ screening and evaluation process are transparent, merit-based and in line with global best practices.

“The synergy created by the consultants working in concert with BoI’s in-house team, will undoubtedly manifest in the quality of young entrepreneurs that will be produced under the programme.

“The import of the overwhelming response by our youths to the YES-Progammes is a manifestation of their desire to take control of their destinies via the entrepreneurial route by being self –employed. It is therefore apparent that the earlier envisaged 1,200 would-be loan beneficiaries would fall far short of the yearnings of the aspiring young entrepreneurs.

“I would like to assure our youths of Federal Government’s absolute commitment to its financial inclusion programme. Government will endeavour to meet the aspirations of youths by providing the support needed by BoI to successfully implement the YES-programmes”.

Members of the application screening committee include the Acting Managing Director, Waheed Olagunju, Executive Director, Financial Inclusion, Mrs. Toyin Adeniji, Divisional Head, SME (North), Abdul-Ganiyu Mohammed, Divisional Head, SME (South), Umar Shekarau, and three other eminent members made up of successful entrepreneurs, professionals, retired bankers, SME consultants.

We talked about this YES program when it was launched last year, I believe this of us that have applied for it are now happy to know that it would accommodate more beneficiaries 

Bank of Industry launches loan program for small businesses

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Nigerian Graduates will have to sacrifice their certificates to get access to CBN small Business loan.

Good news! the central bank of Nigeria have just come up with a loan program for those interested in setting up small and medium businesses in Nigeria, the news is a welcomed one but it has its conditions which is, only those who are in possession of some form of certificate from recognized Nigerian tertiary institutions and those who have a "O" level certificate can benefit from this program.

these are the conditions for getting the Loan as stated by CBN:

The central bank recently came up with a Micro, Small, and Medium Enterprises fund to allow for new businesses to borrow from the fund as start-ups in a bid to create new jobs and curb unemployment.

"this is a new and recent development as it is targeted at the teeming number of unemployed young Nigerians, in the past to get access to such a loan you would need to already have an existing business but however the new guideline released by the Nigerian apex bank CBN have removed this limitation.


   “PFIs are expected to accept charge on fixed and floating assets of the financed projects as collateral for start-ups. Collateral requirement from start-ups by PFIs (DMBs and DFIs) shall be 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 degree (NYSC Certificate where applicable) and a guarantor. "


“The start-ups to access the MSMEDF must present their Bank Verification Number (BVN). Venture Capital Firms (VCFs) that wish to finance start-ups in form of equity participation shall be eligible to access the MSMEDF at 2.0 percent for investment in start-up projects. The collateral for such facility to the VCF shall be bank guarantee. “Incentive shall be offered to PFIs that repay loans as at when due. a) Start-Ups (i) DMBs/DFIs playing in this space, shall access MSMEDF facility at zero percent interest for on-lending at 9.0 percent (all-inclusive) to start-ups. (ii) The PFIs shall qualify for a 50 percent risk shared on the net outstanding balance in the case of default. b) Other Incentives Microfinance Banks with PAR of 10 percent and below shall be exempted from providing financial assets as collateral to access facility under the MSMEDF.”


you ask me steve what do you think? should i use my Certificate as a collateral for a loan? what if my business idea does not work?

well what i think is, if you cannot responsibly manage your business and repay the loan given to you for start up then you have no business looking for a job in another man's Business.

we actually announced last year that the CBN governor was saying something about small business loan during the 7th annual bankers retreat, well this is the much awaited program it is a very attractive loan scheme if you ask me but na only few die hard enterpreneurs like me go fit get mind drop certificate for ground use carry loan enter business.

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Mylastkobo.com to Organise an intensive skill acquisition training exercise for students of the university of Benin.

In line with my commitment to enlightening young Nigerians on the benefits of gaining "sellable" skill before going out into the labour market in search of jobs which are not necessarily always available I will be hosting a one day intensive skill acquisition program in the university of Benin for members of the faculty of arts students association to help them acquire basic knowledge of certain skills that would help put them in a better position in the society when they graduate. 

        The program is taking place on the 14th of May this year and is being organised with the support of the office of the FASA president. Skills to be taught under this program are: 

* web design 

* Blogging

* Events management and interior decor

* Production of Cosmetic products

* Production of ice cream

* Production and design of Ankara products

* Pop corn making

* Make up artistry 

* Network marketing 

* Juice making( shappman) 

* Laundary

These packages will be taught by experts in these fields and it would also be a practical hands on training program where every participating student would be sure to gain the basic knowledge that he or she would need to set up on this fields.

Handouts are going to be available and each participating student is encouraged to take advantage of them as they will serve as a manual for future references.

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BOI launches a graduate entrepreneurs investment program to provide employment.

Worried by the rising number of unemployed youths across the country, the Bank of Industry (BoI) has expressed its desire to reduce the rate to single digit.
Acting Managing Director of BoI, Mr. Waheed Olagunju, stated this in Lagos yesterday at the Youth Entrepreneurship Support (YES) programme Memorandum of Understanding (MoU) signing ceremony with entrepreneurship capacity building facilitators in Lagos yesterday.
Olagunju said BoI was determined to reduce the 25 per cent unemployment rate to single digit, adding that youths account for more than 60 per cent of the country’s population figure, a development he said remained unacceptable to the bank.
The acting MD said for every N1 billion invested in Micro Small and Medium Enterprises (MSMEs), about 4,500 jobs were being created.
And to achieve the target of massive job creation, he said the Federal Government has expressed its willingness to support every initiative of the bank targeted at reducing the number of unemployed youths in the country.
He explained that the YES-Programme is another initiative of BoI designed to address youth unemployment in Nigeria with the first being the Graduate Entrepreneurship Fund (GEF) programme organised for serving members of the National Youth Service Corps (NYSC) launched in October 2015.
“The YES-Programme entails building the capacity of the youths by equipping them with the requisite entrepreneurial knowledge and skills as well as funding their business plans, which would enable them to be self-employed and manage their businesses,” he said.
According to him, participants would be drawn from young aspiring entrepreneurs between the ages of 18 and 35 years, with innovative ideas who must have a minimum educational qualification of an Ordinary National Diploma (OND) or its equivalent.
He explained that 10,000 online applications would be solicited nationwide, out of which 2,000 would be selected for the online component of the YES-Programme.
“Applicants will register online and will be expected to provide accurate answers to questions. Such answers count towards determining the suitability of the applicants for the training programme. Only the top 1,200 online participants will qualify for the in-class training programme annually.
“The in-class training will be delivered by BoI accredited partner training institutions and shall take place on a bi-annual basis at selected centres across the six geo-political zones of the country, including Lagos and Abuja. Consequently, 600 participants shall be trained at the designated locations twice in a year,” he stated.
On the components of YES, he said the programme involves eight weeks extensive online entrepreneurship and business management training, which has the ability to test participants’ understanding and track their progress.
Others are the Business Idea (value proposition and competition analysis), Business Model (how will the business make money), Sales and Marketing, Running a Successful Business (ethics, compliance, operations), Financial Plan.
The initiative, he said, will also involve technical skill training in partnership with the various technical training and vocational institutions in the country while financing of the businesses will be borne by BoI under its Small and Medium Enterprises (SMEs) cluster initiative in consonance with the United Nations Economic Commission for Africa’s Commodity-based Industrialisation Strategy.

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Way out of Forex crisis for Nigeria.

Way out of forex crisis, by entrepreneur

• Starch production at Psaltry International Company Limited.

The foreign exchange (forex) crisis has exposed the underbelly of Nigeria’s import-driven economy. The solution, say entrepreneurs, lies in raising export to boost revenue. This is why the Central Bank of Nigeria (CBN) has been giving loans to key operators in the real sector to stimulate export. A beneficiary, Psaltry International Company Limited, speaks on the impact of the N300 billion Real Sector Support Facility (RSSF) on its operations. COLLINS NWEZE reports.

The foreign exchange (forex) crisis has made stakeholders to look inwards for solutions. To those who understand the workings of the global forex market, developing local industries can help solve the forex problem. Experts say the implementation of the Central Bank of Nigeria’s (CBN’s) N300 billion Real Sector Support Facility is key to reviving forex generation.

For Mrs. Oluyemisi Iranloye, Managing Director/CEO of Psaltry International Company Limited, which got about N850 million loan from the intervention fund, such gesture is all that is needed to enhance forex earnings. Mrs. Iranloye has also helped 64 farmers to get soft loans from the CBN.

Mrs. Iranloye said the loan has helped her company improve her product, which is used by breweries. She said the firm was able to increase the host community’s cassava output by $1.94 million last year. The firm, she added, increased its  turnover to N1 billion within the period.

She said many breweries have been using the product, instead of relying on import which has become expensive because of the forex crisis. This, she said, has led to massive reduction in forex demand by starch users.

Analysts insist that globally, the relationship between the financial system and real sector development remains very critical for any economy to realise its potential. No economy can grow and improve the living standards of its population in the absence of credit to the real sector. That is why the real sector depends on the flow of funds from the banking system.

Many economists have acknowledged that the financial system, with banks as its major component, provide linkages for the various sectors of the economy and encourage high level of specialisation, expertise, economies of scale and a conducive environment for the implementation of various economic policies of government intended to achieve non-inflationary growth, exchange rate stability, balance of payments equilibrium and high levels of employment.

CBN’s real sector financing

The CBN has put the value of its development finance interventions across the country at about N1.36 trillion. Its Governor, Mr. Godwin Emefiele, who disclosed this, emphasised that the Central Bank’s determination to improve lending to the real sector would stimulate employment and boost accretion to foreign reserves through non-oil exports.

He explained that the N300 billion RSSF was part of the CBN’s efforts to unlock the potential of the real sector to engender output growth, value added productivity and job creation.The facility, he said, would support large enterprises for start-ups and expansion of the financing needs of N500 million up to a maximum of N10 billion.

“The real sector activities targeted by the facility are manufacturing, agricultural value chain and selected service sub-sectors.  The facility is expected to improve access to finance by Nigerian Small and Medium Enterprises (SMEs) to fast-track the development of the manufacturing, agricultural value chain and services sub-sectors,” he said.

Another N213 billion Nigerian Electricity Market Stabilisation Facility is aimed at settling certain outstanding debts in the Nigerian Electricity Supply Industry (NESI). The facility covers legacy gas debts and the shortfall in revenue during the Interim Rule period (IRP). It is expected that this will guarantee the take-off of the Transitional Electricity Market (TEM). Already, over N56.68 billion disbursed to five generating companies and five distribution companies.

For Emefiele, the challenges in the power sector are interconnected with the unexpectedly large revenue shortfalls in the industry, which needed to be fixed.

The Agricultural Credit Guarantee Scheme Fund (ACGSF) was established to provide credit guarantees on facilities extended to farmers by banks up to 75 per cent of the amount in default net of any security realised.

He explained that the period under review, there has been an increase of loan limits for unsecured lending from N20,000 to N50,000. There has also been an increase of loan limits for secured lending to corporate bodies under the ACGS from N10 million to N50 million.

To boost agriculture financing, the Agricultural Credit Support Scheme (ACSS) was inaugurated to develop the agricultural sector of the economy by providing credit facilities to farmers at single digit interest rate to enable large-scale farmers exploit the untapped potential of the sector.

Statistics from the CBN showed that since June 2014, 60 per cent of the Commercial Agricultural Credit Scheme (CACS) funds have been dedicated to six focal commodities (rice, wheat, cotton, sugar, dairy products and fish), which have been utilising huge resources from the dwindling foreign reserves.

It said N220 billion Micro, Small and Medium Enterprises Development Fund (MSMEDF) took off in 2014. CBN’s data further showed that N43.57 billion has been disbursed to state governments, participating financial institutions (PFIs), microfinance institutions and finance cooperatives. Also, 61.6 per cent of beneficiaries are women while N30.31 million has been accessed by 292 People Living with Disabilities (PLWD).

Also, a breakdown of  the disbursements shows that N300 billion had been set aside for RSSF; N220 billion had also been disbursed for the Micro-Small and Medium Enterprises Development Fund (MSMEDF); the Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL) got N75 billion; while the Nigeria Electricity Market Stabilisation Fund received N213 billion. Similarly, the Nigeria Export-Import Bank (NEXIM) support is N50 billion for the Export Refinancing and Restructuring Facility; and the Non-oil Export Stimulation Facility received N500 billion.

Speaking at the 21st seminar for finance correspondents and business editors, titled: “CBN Real Sector Financing: A catalyst for economic growth and development,” in Ibadan, the Oyo State capital, Emefiele said the move became necessary because the real sector represents the “engine of every economy” which serves as source for wealth creation and income generation to the productive population.

Emefiele noted that though the real sector which consists of the agricultural, industrial, building and constructive sub-sectors accounts for 93.67 per cent of the country’s Gross Domestic Product (GDP) in 2000, its contribution declined to 76.21 per cent and 70.71 per cent in 2010 and 2013.

Represented by Mr. Adebayo Adelabu, CBN Deputy Governor, Corporate Services, Emefiele said efforts were on-going to deepen credit delivery to the real sector through several interventions and schemes.

He said: “The far reaching objectives of the CBN in the implementation of schemes and programmes for real sector development focus on the inherent potential in the sector is-a-vis our conviction that the sector has sufficient employment capabilities, high growth potential, contributes significantly in accretion to foreign reserves, expands the industrial base and apparently diversifies the growth potential of the national economy.”

He said the recent exclusion of 41 items from accessing forex from the CBN official window and stoppage of sale of forex to bureaux de change (BDC) operators were part of bold policies initiatives by the bank to resuscitate domestic industries and improve employment generation.

However, Adelabu urged Nigerians to look inwards, saying that the country with the largest population in Africa already has a big market. According to Adelabu, the appetite for imported goods would continue to distort monetary policies.

He said the Central Bank as part of its mandate would continue to act as financial catalyst in targeted sectors of the economy with humongous potential for creating jobs, reducing the country’s import bills in a very significant manner.

But the Director, Monetary Policy, CBN, Mr. Moses Tule, stressed that the monetary policy alone cannot fully achieve the objective of macro-economic development through real sector financing.

“In the post-global financial crisis era and the new regulations that were introduced by the Basel committee and several other committees, made it difficult for banks to be given out loans somehow. Therefore, they started having a very cautious approach to lending. That cautious approach to lending has continued. It is not only in Nigeria, but globally.

“But we must understand that the more we encumber the balance sheet of the central bank, the more difficult we make it for the central bank to carry out its responsibility. But then, to so something outside the core objective of the central bank, you need to encumber the balance sheet of the central bank,” he added.

The Executive Director, Finance of Standard Chartered Bank Nigeria Limited and the Regional Chief Financial Officer (CFO) of West Africa, Yemi Owolabi, noted that the structure and dynamics of the financial sector impact its ability to effectively and efficiently discharge its major role of financial intermediation.

According to her, a strong financial sector leads to higher savings and provides access to investment outlets, wealth creation/preservation; and thus promotes economic growth. Furthermore, she explained that banks play an important role in supporting economic growth.

Speaking on the role of banks in real sector financing, she said: “The banking sector has undergone remarkable changes over the past two decades, prominent among are stronger, bigger institutions with bigger capital levels achieved through mergers and acquisitions. This has enhanced the capacity of the sector to create higher amounts of risks assets to support growth.

“Deposit money banks’ valuation represents 23.8 per cent of the Nigeria capital market capitalisation thus enabling wealth creation and preservation. Banks have been in the fore front of employment generation, employs 74,062 people, about 0.4 per cent of Nigeria’s labour force.

“The contributions of financial intermediation and finance to the nation’s GDP have ranged between eight and 10 per cent in recent years. Domestic credit provided by banking sector in Nigeria was last measured at 21.65 per cent in 2014 while domestic credit to private sector in Nigeria was last measured at 14.61 per cent in 2014.”

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Why you should be very careful while spending during this Xmas and New year

A very merry Christmas and a happy new year to all mylastkobo.com subscribers. This part of the year comes with a lot of financial obligations most especially for family heads and sponsors so it is always the case that after the Xmas and New Year celebrations most struggling families and business owners are left with little to face the realities of the new year. 




My advice, separate the money you would need for basic necessities in the new year from that which you would use for the Yuletide celebrations e.g keep the funds for children school fees, business start ups, business space rental bills, maternity bills(if there is someone pregnant in the family), business expansion, and so on keep these funds separately from the one you would need for throwing your family a big Xmas bash. You should only settle to celebrate during this Xmas period after you are sure you have met all your primary financial obligations for the year and that you would be able to meet new ones in the coming year. That is what we call responsibility you shouldn't deceive your family and dependents that everything is OK by throwing them a big Xmas bash only for them to enter the new year to start facing serious hardship. In life planning is very important future evil could be avoided by proper planning.




For business owners that are just starting up it would be foolhardy for you to deep your hands into money meant for the continued upkeep of your business or for the expansion of your business or it would even be far worst if you start borrowing to meet your family and religious obligations during this periods of celebration. Xmas will always be here with us and we all hope that our businesses would grow so that we can get to celebrate with our families in financial convenience but if while we are still struggling to meet our goals in business and other areas we start engaging in activities that are harmful to the future of our businesses and family then we may never get there.




Let us begin to accept facts for what they are 2016 will be a very harsh period for small business owners due to the nations economy and the kind of policies that are being made by the government, so it would be in our best interest if we start focusing on ways to protect our businesses from the predicted harsh 2016 business atmosphere. It is good to celebrate with family during this Xmas period but please do not use it as excuse to start borrowing or enaging in activities that would harm the future of your business and family. 

Finally a Merry Xmas to all our subscribers and non subscribers

RGDS

I.Stephen Azuka

Owner and founder of Mylastkobo.com

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Relief For Small Business As CBN Allow New Business To Borrow From N220bn MSME Fund

Under the directive of  the Governor of the Central Bank Of Nigeria, Godwin Emefiele the CBN has issued out its Revised Micro, Small and Medium Enterprises Development Fund (MSMEDF) Guidelines the guidelines were issued yesterday by the Development Finance department of the CBN in the guideline the CBN  said that banks and other finance institutions that lends to business start-ups under the fund will be allowed to access the fund at zero interest rate.

The fund was opened to existing businesses alone before but the new guideline have removed this limitation stating, “Participating Financial Institutions (PFIs) are required to fund start-up projects under the MSMEDF. To encourage Deposit Money Banks (DMBs) and Development Finance Institutions (DFIs), some incentives shall apply.

“PFIs are expected to accept charge on fixed and floating assets of the financed projects as collateral for start-ups. Collateral requirement from start-ups by PFIs (DMBs and DFIs) shall be 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 degree (NYSC Certificate where applicable) and a guarantor.

The start-ups to access the MSMEDF must present their Bank Verification Number (BVN). Venture Capital Firms (VCFs) that wish to finance start-ups in form of equity participation shall be eligible to access the MSMEDF at 2.0 percent for investment in start-up projects. The collateral for such facility to the VCF shall be bank guarantee.
“Incentive shall be offered to PFIs that repay loans as at when due. a) Start-Ups (i) DMBs/DFIs playing in this space, shall access MSMEDF facility at zero percent interest for on-lending at 9.0 percent (all-inclusive) to start-ups. (ii) The PFIs shall qualify for a 50 percent risk shared on the net outstanding balance in the case of default. b) Other Incentives Microfinance Banks with PAR of 10 percent and below shall be exempted from providing financial assets as collateral to access facility under the MSMEDF.”

The CBN also reduced the interest rate it charges PFI's accessing the loan from 3.0 percent to 2.0 percent. It stated, “Interest Rates All PFIs shall access funds at an interest rate of 2.0 percent per annum and on lend at 9.0 percent per annum inclusive of all charges. The interest rate chargeable under the MSMEDF may be reviewed by the Central Bank of Nigeria from time to time.”
The decision to allow business start-ups borrow from the fund is aimed at boosting graduate employment by encouraging banks to lend to graduates intending to set up businesses.

You could recall the CBN governor recently said that the apex bank would soon introduce measures to generate one million graduate employments while addressing bankers at the 7th annual bankers retreat He said, “In 2016, the CBN is contemplating a programme that would support SMEs at concessionary pricing to our young graduates. We need to get more people to be employed. The central bank would over the next few weeks work out the initiative to create employment for at least one million graduates in Nigeria in 2016. That would entail the support from Nigerian banks and our development partners.”

download the  Revised Micro, Small and Medium Enterprises Development Fund (MSMEDF) Guidelines PDF

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Factors affecting the contributions of SME's to the Nigerian economy.

When we say small businesses are important to a nation's economy, just how important do we think they are? and in what ways do we think they serve this importance?

In a Nation where the Government does not pay attention to small businesses and produce few policies that will help protect and build its small businesses the small businesses in that country will end up contributing less to the nation's economy, why?

Poor policy making: SME's are supposed to bring about substantial local capital formation, they are supposed bring about an increase in rural and urban development but in the situation wereby a nation keep introducing policies that are inimical to the growth and development of its Small Businesses, that nation's small businesses will suffer and they will end up contributing less to the nation's economy.

Poor SME supporting infrastructures:In a place like Nigeria where most small businesses rely on private generators for electricity, the contributions of small businesses to the nations economy in the area of electricity revenue will be substantially reduced, SME's are supposed to be among the top customers of electric power distribution companies but due to poor electricity the distribution companies are being neglected by some businesses who would rather run on generators. If there is a good system of transportation in the country e.g railway, waterway and cheap air travel fairs, small businesses will greaty utilize them instead on relying on private transport to move goods and services around the country, this will not only increase the contribution of small businesses to the nations economy it will also help small business owners to carry out their business in an atmosphere of affordable comfort.

Access to low interest loans and other business grants: access to loan and other forms of funds is also one of the factors that would help small businesses perform better putting them in a better position to contribute to the nation's economy.


Illegal business practices: SME's operating outside the nations economy and legal structure will do little for the nations economy e.g SME's operating on banned products and services, tax evasion e.t.c this Businesses will do more harm than good to the nation.

Poor Taxation system: If a nation is unable to come up with an effective taxation system for the effective taxation of businesses within its borders, then it should be ready to accept less contribution from businesses within it to it's economy.

Indifference to changing trends: When small businesses in a country refuse to structure their business in such a way that it would reflect compliance to changing global and domestic trends, trends and mode of operation that would suit the national economy, such businesses may end up contributing less to the nation's economic growth.

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CBN To Focus on Strategies to develop Nigeria's Small Businesses

the Governor of the Central Bank of Nigeria, Godwin Emefiele said it will focus on strategies to address current constraints to the growth of SMEs he said this At the opening ceremony of the  2015 retreat of the bankers community which took place at Eko Hotel and Suites in Victoria Island, Lagos Thursday, December 10, 2015. The retreat which is the 7th in its series has the theme: Creating an Enabling Environment for SME Growth'. 

Emefiele who is also the Chairman of the Bankers Community added that the retreat will focus on the key infrastructures needed for SME growth in the country such as the issue of power and transportation, he talked about the opportunities in sectors like Agriculture, manufacturing and solid minerals.

Dignitaries present at the opening ceremony are:

the executive Governor of Lagos State, Mr. Akinwunmi Ambode; the Minister of Finance, Mrs. Kemi Adeosun; and the Minister of Transportation, Hon. Chibuike Rotimi Amaechi. Also present were Deputy Governors and Directors of the Central Bank of Nigeria as well as Managing Directors and Chief Executive Officers of deposit money banks, among many others.

The following persons are expected to make presentations at the retreat: 

Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola; the Minister of Agriculture, Chief Audu Ogbeh; and the Minister of Solid Minerals, Dr. Kayode Fayemi.

Personally I think it is a good thing at this time that the Nigerian bankers community is holding a retreat where issues that affect Nigeria's SME's will be among the subjects of discussions.

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SMEDAN Promise to Seek Finance for Brilliant Business Ideas and Bankable Business Plan

SMEDAN is notifying people with brilliant and innovative business ideas with a reliable business plan to contact them for financing. this information was placed in their website at http://www.smedan.gov.ng/

this was exactly how the Notification went:

  This is a special announcement from SMEDAN

 Do you have a good business idea?
 Have you a bankable business plan supporting the idea(s)?
 Do you also belong to a registered and functioning Cooperative society with feasible businesses?
 SMEDAN will provide you access to business finance through our partners.
 For more information, contact us at No 35 Port Harcourt Crescent off Gimbiya Street Garki Abuja or at SMEDAN Zonal offices across the six geo-political zones.

You can also visit our state offices throughout the federation or info@smedan.gov.ng

Remember, a good business plan is an essential roadmap for business success.

I think it would cause no harm to try this one oya make una start  write business plan make we see either this people go favor us.

 SMEDAN(Small and Medium Enterprises Development Agency Of Nigeria) is the agency estabished in 2003, to promote and develop an efficient structure through which Nigerian SME's can contribute to the Nations economy.

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See How Important Your Small Business Is To The Nigerian Economy.

According to the Central Bank Of Nigeria in its monetary policy circular  No 22 of 1988 it defined SME's( small medium enterprises) as business having a turnover not exceeding 500,000 Naira, also in 1990 Nigerian Commercial Banks defined SME's as companies with not exceeding 500,000 as total income.

Running your small business without getting any attention or support from government you may begin to question the importance of your business to the Nations overall economy but that is not always the case, small businesses are the bedrock of any Nations Economy. The SME sector is responsible for about 70% of the total industrial employment in Nigeria and between 10-15% of the manufacturing output, even the Nigerian Agricutural sector is comprised mainly of SME's and it is the sector promoting indegenous technology and innovative use of local raw materials. your small business is the greatest hope for the Nigerian Economy.

Small businesses like your own are very important for rural and urban development, The 2012 enterprise baseline survey revealed that there are about 17 million Small and Medium Scale Enterprise in Nigeria employing about 32.41million persons and contributing about 46.54% to the Nations GDP.

Small businesses are vital to any Nations Economy and this is the reason why Government of Nations always provide policies that serves to protect and develop their SME's.

SMEDAN(Small and Medium Enterprises Development Agency Of Nigeria) is the agency estabished in 2003, to promote and develop an efficient structure through which Nigerian SME's can contribute to the Nations economy.

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Factors Affecting The Cost Of Setting Up A Business In Nigeria

Doing Business in Nigeria is not easy and it may even get harder considering recent events, the devaluation of the nations currency, the gradual drop in crude oil price which is greatly affecting the nations economy, and the incoherent policy of the present administration towards the development of SME's in the country, this article will try to explain the factors that influence the start-up capitals of small businesses in Nigeria.

1.National Economy: Businesses operating within a Nation will be affected by the nations economy, if inflation is high in the nation then the cost of doing business in that country will increase because with high inflation comes an increase in the cost of raw materials that is needed by small businesses. just like other developing Nations Nigeria inflation rate is high rising from 6.8% in January to 8.7% in October 2015. This mean that SME owners will have to pay more for raw materials in order to keep their business going. When running business in a country where there is rising inflation business owners are faced with the uncomfortable dilemma of either increasing the cost of their product and services or accepting a reduction in profit and interest from sales.

2.Lack of Infrastructure: The lack of good roads, electricity, water, communication, internet facility and other basic infrastructure. Every business needs at least one or all of this infrastructures to function properly so in a situation where this is not readily available in the country or at your business location you may have to expand your business start-up capital to make provisions for this basic infrastructures, take for example if you were not planning on buying a generator set before you may need to make arrangement for that when planning to set up your business in Nigeria because of the very poor electricity distribution in the country. If you are setting up a business that is reliant on constant supply of water you may have to make private provisions for that too, and of course if your business will need the use of internet connection then you will have to make private plans for that while calculating your start-up capital.

3.The legal factors: The laws of Nigeria affects all businesses within Nigeria, and this includes the laws guiding taxation, payment of necessary bills and the law guiding the registration of companies as executed by the Nigerian Corporate Affairs Commission (CAC) the Agency in charge of the registration of companies in Nigeria. you cannot do business comfortably or successfully in Nigeria without first obeying the rules and principles of the country. for one to have his or her business legally registered in Nigeria one would have to register with the corporate affairs commission (CAC), the cost of registering businesses is fixed by CAC and it ranges from 5000+NGN, depending on the type of business you are planning to register.

4.Value of the Naira: Nigeria being mainly importation dependent most of the materials that may be needed for starting a business in the country may have to be sourced from abroad and when buying from abroad the value of your local currency matters a lot, if your currency is of low value you may have to pay more for products that you buy from abroad. so as the Nigerian Naira is depreciating the cost of doing import based businesses in Nigeria is also increasing.

5.Cost of Renting Office spaces and shops: When you go to big Nigerian cities like Abuja, Lagos, PHacourt, Calabar, Kaduna you will find out that the cost of renting just a few feets of business space is very expensive, take for example at Ademola Crescent Wuse II Abuja you will be very lucky to get a lock up shop space for anything less that 500,000 naira. so as big cities develop the cost doing business in them also increases.
Your start up cost can be affected by many factors most especially by the ones highlighted here.

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Will Buhari's Administration Favor Nigerian Small Businesses?

The last administration under President Goodluck Jonathan introduced several policies to enhance the growth in the Nigerian Small Medium Enterprise sector and one remarkable example was the YOUWIN Program and other programs, some of these SME oriented programs have since been abandoned by the present administration whose main focus is on the fight against corruption.

It is not too early to say that Buhari's administration may not favor the Nations struggling SME sector considering the Presidents body language towards policies that affects Small Businesses, first a Ban was placed on the importation of small generators which is the main stay of most of the Small Businesses in the country, a nation which is faced with severe electricity distribution problems, most Nigerian Businesses run on generators all through their Business hours and as if running a business in Nigeria was not hard already the Controller of Federation Operation Unit Zone A of the Nigerian Customs came out on Tuesday , November 17,2015 to announce that the federal government had placed a ban on the importation of low cost generators(i better pass my neigbour) due to the adverse effect it has on the environment, that was Buhari's first body language that suggested his policies may not be too fair to small businesses in Nigeria.

7 months after the inauguration of the new Government the President still haven't shown any sign of having a coherent policy directed at boosting Small Medium Enterprises in the country and in effect creating employment. Several commentators like Opara Prince from Naij.com and other commentators from Nairaland.com criticized this policy and described it as " a targeted action against a significant amount of some unfortunate /distinguished groups...most especially SME's.

The Nigerian Electricity Regulatory Commision under this present Administration is presently considering the increase of electricity tariff in 2016, this would mean that Nigerian Citizens and Business owners may have to pay more for electricity in the coming year.

The Present Administration is working towards removing fuel subsidy in 2016, this would have certain implications on Nigerian Businesses and Citizens as they will have to pay more for petrol and kerosine. those who live in Nigeria know how much the Nigerian People spend daily on petroleum to power their homes and businesses even while there is still fuel subsidy, most of us small business owners do not want to know what doing business in Nigeria would look like with a ban being placed on the importation of small generators, fall in Naira value and removal of fuel subsidy.

If the President continue with this kind of policy or "body language" towards SME's it may become harder to do Business in Nigeria under this administration.

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How the drop in Naira value might affect your Small scale Business

Nigeria is one of the most affected countries by the falling oil prices, this is simply because Nigeria depends on its trade in oil and gas for finance, so as the oil prices fall, our Naira will be devalued to meet up with global realities, Nigeria is solely dependent on importation of finished products and a lot of young Small Medium Enterprises may directly or indirectly be running a mini importation business or a business that is importation reliant.

When a nation devalues her currency she is deliberately trying to increase gain in tradable items but however cost of goods and services will become very cheap in the country compared to the other nations with stable currency, so when you want to use your currency to purchase from other Countries whose currency still have value e.g China, U.S, Japan and Germany, you will have to pay more every good you buy, take for example those running a mini importation Business that is reliant on buying things from China or the United States, if you were using 15,500 NGN to buy a 100 USD worth of product 2 years ago as the Nigerian currency is being continously devalued you may end up paying up to 20,000NGN for the same product in 2015.

So the fall in Naira value comes with certain implications for Nigerian Small Business owners and i think what Nigerian Importation based businesses need to be doing right now is to start seeking for locally available alternatives to foreign products e.g raw materials and some selected finished products that could be sourced locally.

The year 2016 may not come with new miracles for the Nigerian Naira or the Economy as the gradual fall in crude oil price is digging a deep hole in the nations economy and crude oil price is still even being predicted to fall further.for SME owners, the importation based businesses, internet businesses and bureau de change officials will be the worst hit by this development. And i think we should all gear up for 2016 because in 2016 comes more struggle.

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