(Ecofin Agency) - Commercial banks in Nigeria have raised the sum of N26 billion ($81 million) as part of vows to finance agro-based small and medium scale enterprises (SMEs) in the country, according to Bola Adesola (photo), the Managing Director of Standard Chartered Bank.

Speaking while briefing newsmen in Lagos yesterday, Adesola explained that the contribution comes after the Central Bank directed all commercial banks to earmark 5% of their yearly after-tax profit to support a scheme targeted at enhancing the diversification drive of the Federal Government. The CBN order is part of the guidelines for the operation of the Agricultural/Small and Medium Enterprises Investment Scheme (AGSMEIS) which was designed to complement the federal government’s efforts to promote agricultural businesses as a tool for sustainable economic development and job creation.

“We are working on the framework for the investment that would help to catalyze growth, ease financing, create jobs and improve prosperity. After the audited accounts of banks were published, we all contributed five per cent of our profit after tax to a fund at the CBN towards contributing equity to agriculture and the SMEs. As you know, many companies cannot just survive on debt because of the cost of debt. So, long-term capital is required to catalyze growth in the SMEs to make them viable and sustainable. Right now, there is about N26bn in the fund,” she said.

Anita Fatunji