The Federal Executive Council has approved the disbursement of N60 billion to small businesses in Nigeria through the Central Bank of Nigeria’s Agric Small and Medium Enterprises Investment Scheme (AGSMEIS). The scheme, which was established in 2020 with an initial N75 billion fund, has since been increased to N60 billion, with the aim of supporting youth-led and youth-owned businesses operating in priority sectors. In this article, we provide information on the eligibility criteria, requirements, and application process for the AGSMEIS scheme, in order to help businesses take advantage of the funding opportunities available.
Eligibility criteria for AGSMEIS funding
The AGSMEIS scheme is open to small and medium enterprises (SMEs) operating in priority sectors of the Nigerian economy, including agriculture, manufacturing, renewable energy, ICT, tourism, and solid minerals. To be eligible for funding, businesses must meet the following criteria:
Be a Nigerian business registered with the Corporate Affairs Commission (CAC).
Have a valid tax identification number (TIN).
Have a bank account in the business name.
Have a business plan or proposal.
Have a commitment to job creation.
Not be a civil servant or hold any political office.
The AGSMEIS funding is also open to individuals with innovative business ideas. However, these individuals must not be younger than 18 years or older than 35 years of age. They must also have a National Youth Service Corps (NYSC) discharge or exemption certificate.
Businesses that are eligible for funding under the scheme can apply for loans of up to N10 million at a 9% interest rate. However, the actual amount of funding provided will depend on the specific business plan and proposal submitted. Businesses can apply for funding through the AGSMEIS portal. Applicants will be required to submit their business plan or proposal, along with supporting documents, such as CAC registration documents, tax clearance certificate, bank statements, and a letter of recommendation.
Once an application is submitted, it will be reviewed by a panel of experts and shortlisted applicants will be invited for an interview. After the interview, successful applicants will be notified of the final decision on their application and will be required to sign a legal agreement with the CBN before funds can be disbursed.
What are the requirements for AGSMEIS loan disbursement?
The CBN requires that businesses meet the following requirements before disbursing funds through the AGSMEIS scheme:
A guarantor’s letter of consent to support the loan facility.
A duly completed security form signed by the guarantor and the bank.
An invoice or proforma invoice.
Valuation report, land title documents, and other required collateral documents.
Registration certificate and Memorandum of Association of the company.
What are the benefits of AGSMEIS funding?
The AGSMEIS funding scheme offers a number of benefits to businesses, including the following:
Access to low-interest funding.
Business advisory services.
Training and capacity building.
Market linkages and networking opportunities.
It’s important to note that the AGSMEIS scheme is not the only source of funding available to small businesses in Nigeria. There are other government initiatives such as the National MSME Development Fund, the Nigerian Export-Import Bank (NEXIM), and the Bank of Industry (BOI). Businesses should research all available options and select the funding option that best suits their needs.
