Access, GTB, Zenith, others boost agric, SMEs with N16.8bn
*As CBN directs banks to set aside 5% PAT for scheme
* ‘Scheme designed to support FG’s efforts at promoting agro business, SMEs’
Five commercial banks, Access Bank Plc, Guaranty Trust Bank Plc (GTBank), First City Monument Bank Holdings Plc, Stanbic IBTC and Zenith Bank Plc, have supported the Central Bank of Nigeria (CBN)’s Agri-Business/Small and Medium Scale Industries Scheme (AGSMEEIS) with the total sum of N16.8 billion in 2017.
The AGSMEEIS was approved by the Bankers’ Committee last year to finance equity investment in qualifying small and medium scale enterprises (SMEs) and agric sector.
Under the terms of the guideline, participating commercial banks were to set aside five per cent of their profit after tax (PAT) annually.
A total of N26 billion was raised by commercial banks operating in the country last year as part of their commitment to finances agro-based and SMEs.
With N170.5 billion profit after tax in 2017, GTBank contributed N6.34 billion to AGSMEIS, followed by Zenith Bank which deposited N5.96 billion for investment in AGSMEIS.
Zenith Bank in 2017 reported N203.46 billion profit, about 30 per cent increase over N156.7 billion in 2016.
Meanwhile, Access Bank contributed N3.2 billion to AGSMEIS while FCMB and Stanbic IBTC invested N552 million and N749 million respectively.
The CBN’s directive had issued a circular – “Guidelines for the Operations of the AGSMEIS”.
The banking regulator said the scheme was designed to support the Federal Government’s efforts aimed at promoting agricultural businesses/SMEs as a vehicle for sustainable economic development and employment generation.
“All deposit money banks pursuant thereof, are hereby required to set aside and remit to the designated account domiciled in the Central Bank of Nigeria, 5 percent of their annual profit after tax for equity investment in permissible activities as stipulated in the scheme guidelines,” the apex bank said.
The CBN said each commercial bank is required to nominate a representative to the AGSMEIS’ project review committee, which is charged with the responsibility for recommending investment of funds in eligible enterprises.
