Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS)

The Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS) is an initiative, targeted at start-ups and the expansion of established companies as well as the reviving of ailing companies to enhance job creation and agribusiness for a sustainable economy.

This initiative requires all Deposit Money Banks to set aside five per cent (5%) of their annual profit after tax (PAT), to support and sustain its management.

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, flagged off the disbursement of funds to the first set of beneficiaries, in Abuja, noting that the challenges of youth unemployment and restiveness must be confronted with strategic innovative thinking to provide sustainable solution.

In his speech, he stated that the committee agreed to design and fund a suitable scheme aimed at bridging the huge financing gap for Micro, Small and Medium Enterprises (MSMEs), adding that the Fund was also aimed at job creation, financial inclusion and inclusive growth for Nigerians, particularly the teeming youth population.

“Micro, Small and Medium Enterprises in the rural areas of Nigeria is viewed as a new concept especially in traditional African societies where rural areas are synonymous with subsistence farming by male folks to cater for the needs of their immediate family and women roles in rural areas according to the culture of many tribes in Nigeria is to cater for the children at home, cook meals and do the laundry. In a male dominated society especially in African countries, issues of women involvement as entrepreneurs driving Micro, Small and Medium Enterprises generates a lot of attention. Apart from the traditional roles ascribed to women by various cultures in Nigeria, women entrepreneurs are stereotyped by other women as ambitious and rebellious for stepping out of their traditional roles.
Research in Nigeria shows that entrepreneurs in rural areas start new businesses due to the quest for financial autonomy; passion; power and determination to succeed. Most of the rural population provide for their families through subsistence farming and other agricultural practices such as fish farming, poultry supplemented by petty trading.”

The first batch of beneficiaries are youths who had been trained on various entrepreneurship, vocational and management skills across the country by Entrepreneurship Development Institutions and Centers, such as Fate Foundation; Lagos Business School; House of Tara and Thrive Agric.

Unlike practices where physical funds were disbursed to beneficiaries, upon completion of their vocational training, beneficiaries are being provided with the specific implements needed to practice their vocations, procured under the scheme.

AGSMEIS as an initiative of the Bankers’ Committee, is set to improve access to affordable financing for MSMEs, particularly those operating in the informal sector of the economy and to support the Federal Government’s efforts and policy measures to promote sustainable economic development and employment generation.

AGSMEIS Direct component beneficiaries, would be able to access loans to a limit of N10 million, at a maximum tenor of up to seven years. However, beneficiaries must all possess a valid BVN, which shall be registered on the National Collateral Registry and used to track repayments and blacklist any defaulters.