Business Banks' lending to SMEs drops to 0.14 per cent

The Central Bank of Nigeria has said that the total lending by commercial banks to small and medium scale enterprises dropped tremendously between 2003 and 2012 to a low of 0.14 per cent last year. According to recent survey by International Finance Corporation (IFC) and Mckinsey (2010), up to 80 percent of the Micro Small and Medium scale Enterprises (MSMEs) in Nigeria are excluded from the financial markets.

This was disclosed by the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi during the annual Micro, Small and Medium Enterprise (MSMEs) finance conference holding in Abuja.

Reports indicates that in 2012, Nigeria had approximated 17.6 million MSMEs employing about 32.4 million people, and contributing about 46.54 percent of nominal Gross Domestic Product (GDP), but this sector, seen as the wheel of economic growth, has been neglected.
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