SMEDAN directs N5bn loan applicants to submit CAC certificate

The Small and Medium Enterprises Development Agency of Nigeria has reviewed the selection process of beneficiaries for a N5bn credit facility allotted meant for small businesses in the country.

With the new procedure, the agency has mandated the submission of Corporate Affairs Commission certificate and Tax Identification Number as a compulsory requirement to obtain the loan.

The Head of Corporate Affairs, Moshood Lawal, made the disclosure during an exclusive interview with our correspondent on Wednesday in Abuja.

The PUNCH reports that last year, SMEDAN signed an agreement with Sterling Bank to disburse loan options ranging from N250,000 to N2,500,000 at a single-digit interest rate of nine per cent, facilitating the growth of small businesses through enhanced financial access. The credit with the target to assist over 10,000 Small and Medium Enterprises has a duration period of 12 months, enabling small businesses to leverage the facility fully.

Speaking at the signing ceremony, the SMEDAN DG, Charles Odii, described it as “an important milestone in our efforts to stimulate economic growth and drive prosperity by enhancing SME access to finance. We believe that the financial support, which comes at a very competitive rate, will help SMEs expand operations, hire additional employees, and contribute to an overall upswing in beneficial trade and economic activities.”

But giving an update on the issue four months after, the spokesperson said a software application had been developed to smoothen the process and limit human interference on the credibility of the process.

He added that submission of CAC certificate and tax identification number was needed to identify fake applicants and ensure the funds is given to the right persons.