By Nduka Chiejina and Adeola Adeyoye, The Nation

The Federal Government will assess Micro, Small and Medium Enterprises (MSMEs) and Micro Finance Banks to determine their viability, before they would be eligible to access funds from the MSMEs development funds and the N200 billion Small and Medium Enterprise Credit Guarantee Scheme (SMECGS), the Minister of State for Finance, Dr. Yerima Lawan Ngama, has said.

Ngana, who spoke at the Annual Lecture of Microfinance banks in Abuja, yesterday, said the development funds and the N200 billion SMECGS, were established for the sub sector and they are available to eligible institutions.

Despite the September 2010 mass liquidation of 103 microfinance banks, the minister lamented that the challenges are still noticeable.

The minister who was represented by the Executive Director, Operations, Nigeria Deposit Insurance Corporation (NDIC), Prince Erediuwa, said, “drawing rights for both funds will be based on viability of the applying institution.”

He said the Central Bank of Nigeria (CBN) and other relevant agencies of the government, will come out with a clear policy/framework for eligibility.

In his presentation, the CBN governor Mallam Sanusi Lamido Sanusi represented by Mr. A. A. Sowunmi, Deputy Director in charge of microfinance issues, said the apex bank has proposed the establishment of the MSME Development Fund to provide liquidity support for MFBs.

The fund he said will cover refinancing, guarantee and wholesale facilities through various windows to support the MFBs to lend to entrepreneurs adding that arrangements to establish the Fund is at an advanced stage.