The Bank of Industry

Oct 16, 2003, 12:09

Instituted by this Administration to promote the growth and development oI small and medium
scale industries in the country, the Bank oI Industry is a product oI the merger oI three
development Iinancial institutions. They are:
The Nigerian Bank oI Commerce and Industry (NBCI) The Nigerian Industrial Development
Bank (NIDB) The National Economic Reconstruction Fund (NERFUND)
The merger, which was carried out by the Federal Executive Council in January 2000, targets an
eIIective harmonisation oI the resources oI all three institutions Ior eIIicient use in areas
earmarked Ior industrial development.
The establishment oI the Bank oI Industry is one oI the most powerIul incentives Ior Nigeria`s
industrial development.
As Iollow-up to the initial creation oI the Bank oI Industry, President Olusegun Obasanjo
Iormally launched the new Bank oI Industry on 17 May 2002, which started operations with an
initial capital base oI N50 billion (about $500 million). The new Bank, which is solely owned by
the Federal Government, has oIIices in all 36 states oI the Iederation.
edit] Mandate of the Bank
The Bank oI Industry was conceptualised by the Federal Government to 'transIorm Nigeria`s
industrial sector and integrate it into the global economy through providing cheap Iinancing and
business support services to existing and new industries in order to achieve the attainment oI
modern capabilities to produce goods that are attractive to both domestic and external markets.
SpeciIically, the Bank is expected to assist in resuscitating ailing industries and promoting new
ones in all the geopolitical zones in the country. To this end, it is mandated to identiIy and assist:
Projects that have large transIormation impacts (by creating Iorward and backward linkages
with the rest oI the economy) Projects that utilise domestic inputs Projects that generate huge
employment opportunities Projects that produce quality products Ior the export market.

edit] Structure of the Bank
The new Bank oI Industry comprises Iour subsidiaries. They are:
Leasing Company oI Nigeria Limited (LECON) NIDB Trustees Limited (NTL) NIDB
Consultancy and Finance Limited (NIDB Consult) Industrial and Development Insurance
Brokers (IDIB)

Brief Profile of Previous Development Banks
1. The National Economic Reconstruction Fund (NERFUND) NERFUND was an outreach
programme that sought to empower the banking sector through the provision oI small and
medium scale industrial loans. NERFUND did not lend directly to beneIiciaries; it did so through
participating commercial and merchant banks Ior onward lending to small and medium scale
enterprises. It came into existence in January 1989 and commenced operations in September oI
the same year.
2. The Nigerian Bank Ior Commerce and Industry (NBCI) NBCI was set up in 1973 to promote
the development oI small and medium size enterprises (SMEs) in the country. Until it was
subsumed under the Bank oI Industry, the principal Iunction oI the NBCI had been the provision
oI long-term investment Iinancing and equity Iunds to SMEs.
The NBCI, which was exempted Irom paying taxes, had a Iully paid share capital oI two million
ordinary shares at N100 each. The Ministry oI Finance held up to 60 percent oI the shares, while
the Central Bank oI Nigeria (CBN) held the remaining 40 percent.
3. Nigeria Industrial Development Bank (NIDB) The NIDB was established in 1964. According
to its memorandum oI association, the main objective oI the NIDB was to assist enterprises
engaged in industry, commerce, agriculture and the exploitation oI natural resources in the
country. The CBN, the Ministry oI Finance and the Ministry oI Industry were its supervising
agencies.
edit] Supporting Other Businesses
The Bank oI Industry will promote the development oI small and medium size industries in the
Iollowing areas:
Agricultural Iinance Industrial and commercial Iinance Natural resource exploitation
Iinance Long term investment Iinancing and equity Iunding oI SMEs Support oI SMEs
through lending Iunds to commercial and merchant banks.

edit] Future Prospects of the Bank
When the Bank becomes Iull operational, its achievements will centre on:
Becoming a major player in Nigeria`s industrialisation programme Establishing a nationwide
branch network Encouraging an emerging market economy Promoting the national drive Ior
industrial development Implementing a strong and enhanced capital base.'''
NACRDB
Nigerian Agricultural Cooperative and Rural Development Bank
Limited
NARCDB is a new bank which carne into being following the merger of the
defunct Nigerian Agricultural and Cooperative Bank (NACB), People's Bank of Nigeria (PBN), and the risk
assets of the Family Economic Advancement Program (FEAP). t is wholly owned by the Federal
Government of Nigeria. Therefore, your deposit is 100% secured.
The Objectives of establishing the bank include:

O Purveyance of affordable credit facilities to the less privileged segments of the Nigerian society
who cannot readily access the services of other conventional banks.
O Acceptance of savings deposit from customers and the repayment of same with accrued interest
when due.
O Provision of opportunities for self employment in the rural areas, thereby reducing rural to urban
migration.
O Enhance government efforts in the diversification of the productive base of the National Economy.
O nculcation of banking habits at the grass-root level of the Nigerian society.
O Promotion of capacity building through the provision of relevant training and advisory services.
O Fostering an accelerated growth and development of the agricultural rural economy.
O Encouraging the formation of Co-operative societies at all levels.
O End-well schemes for the civil servant and other salary earners.
Because of the uniqueness of the bank in the Nigerian Economy, the Federal Government has just
restructured the bank towards economic growth of the nation.

Being a deposit taking bank, the bank has the following products:
i. Savings a/c
ii. Target Saving Scheme
iii. Salary a/c
iv. Co-operatives a/c
v. People's Start up Loan Scheme, PSLS
vi. Fixed Deposit a/c
vii. Govt. Revenue a/c
Since the objective of the bank include giving Financial Support to Customers Business, the bank
operates the following Loan Schemes:

1. Micro-Credit Scheme (not more than N250,000)
Conditions:
O You need to have an account relation ship with the bank for 60 days (for farming business) or 100
days (for non farming business)
O Have 30% of the loan amount as deposit for Non-Agric Business (the deposit attracts interest)
O 10% deposit for Agric-Loan below N 00,000
O 20% deposit for Agric loan below N 250,000 but above N 100,000
O Provide two guarantors
O Simple interest rate on loan at 8% per annum
O 7% per annum for cotton production
O Repayment period is 12 months
O For civil servants, salary accounts are acceptable
2. Lending
This is done in bulk loan scheme for financial and credit lending institutions like banks, cooperative
bodies, etc.
Conditions:

O Establish account relationship with the bank
O 30% of the loan as deposit
O Collateral security or government guarantee
Who can participate
O ndividuals: Traders, artisans, civil servants, and farmers
O Groups and institutions: Cooperative societies, associations, banks, etc.
O Limited liability companies: Small, medium, and large scale farming, marketing, agro processing
companies.Reduction initial set-up costs,f
Federal Mortgage Bank Of Nigeria (FMBN)

Federal Mortgage Bank of Nigeria (FMBN)
The FMBN was established by Decree No. 7 of 1977. The main functions of
the FMBN include the provision of the banking and advisory services and
research activities pertaining to housing. Decree 3 of January 1991
empowered FMBN to license and regulate Mortgage Institutions in Nigeria.

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IN1kCDUC1ICN
nous|ng sector p|ays a cr|t|ca| ro|e |n the deve|opment of an economy It not on|y affects the
we|fare of the c|t|zens but a|so the performance of other sectors of the economy
It |s one of the three most |mportant bas|c needs of man the others be|ng food and c|oth|ng
Consequent|y greater attent|on |s be|ng g|ven by governments |n the de||very of affordab|e
hous|ng to |ts c|t|zenry through
AsslsLance ln flnance (vla ald subsldy or granLs or comblnaLlons)
AsslsLance ln provlslon of lnfrasLrucLure
1he focus on hous|ng f|nance has been very prom|nent because hous|ng prov|s|on requ|res
huge cap|ta| out|ay wh|ch |s often beyond the capac|ty of the vu|nerab|e med|um]|ow |ncome
groups
IM8N MANDA1L
IM8N was estab||shed to
,AnuA1L 1 Lncourage Lhe emergence and growLh of a vlable secondary morLgage markeL Lo
servlce Lhe needs of houslng dellvery ln nlgerla
,AnuA1L 2 Llnk Lhe morLgage markeL Lo Lhe caplLal markeL for susLalnable long Lenored
fundlng and become a promlnenL caplLal markeL operaLor Lhrough lssuance of debL and
,orLgage 8acked SecurlLles (,8S)
,AnuA1L 3 ,oblllze domesLlc and forelgn funds lnLo Lhe houslng flnance subsecLor
,AnuA1L 4 CollecL and manage Lhe naLlonal Pouslng lund (nPl) ln accordance wlLh Lhe nPl
law
,AnuA1L 1
LkICkMANCL CN MANDA1L
Lncourage Lhe growLh of a vlable secondary morLgage markeL ln nlgerla
Successful reflnanclng of 9323 morLgages valued aL n26 bllllon creaLed by
,orLgage Loan CrlglnaLors ln Lhe 1
sL
Lranche of Lhe n100 bllllon ,orLgage8acked 8ond programme
Lo sell lC nonessenLlal resldenLlal houses ln Lhe lC1 ln ?ear 2007 1he expecLed reflnanclng of
abouL 6333 ouLsLandlng morLgages valued aL n14 bllllon ln Lhe 2
nd
Lranche
,AnuA1L 2
Llnk Lhe ,orLgage ,arkeL Lo Lhe CaplLal ,arkeL

1he lederal ,orLgage 8ank of nlgerla ls reglsLered as an lssulng house by Lhe
SecurlLles and Lxchange Commlsslon (SLC)
l,8n ls recognlzed as an lssuer of morLgagebacked lnsLrumenLs by Lhe lederal
CovernmenL of nlgerla
l,8n's morLgagebacked bond (,88) conLlnued Lo reLaln lLs 'AAA' raLlng
,AnuA1L 3
,oblllze forelgn and domesLlc funds
l,8n ls recognlsed as a flrsLcholce lnvesLmenL condulL by forelgn lnvesLors
l,8n ls explorlng opporLunlLles of lssulng debL lnsLrumenLs ln local and lnLernaLlonal
caplLal markeLs ln collaboraLlon wlLh lnLernaLlonal flnanclal lnsLlLuLlons
lnvesLor proflle lnclude global banks lnLernaLlonal lnvesLmenL flrms conglomeraLes
forelgn houslng corporaLlons eLc
,AnuA1L 4
CollecL and manage Lhe naLlonal Pouslng lund (nPl)
SlgnlflcanL lncrease ln Lhe number of reglsLered parLlclpanLs whlch reflecLs growlng
confldence ln Lhe Scheme
+ 26 sLaLes now parLlclpaLlng from only 3 ln ?ear 2002
+ all 24 banks parLlclpaLlng eLc
Wllllngness Lo expand access channels Lo nPl morLgage orlglnaLlons eg lAs
lnsurance companles ,l8s
SLeady lncrease ln LoLal annual collecLlons and dlsbursemenLs
(see nexL slldes)
C1nLk ACnILVLMLN1S
NnI CCN1kI8U1ICNS kLIUND
CumulaLlve of N94266226388 refunded Lo S0S22 conLrlbuLors
LCAN kLCCVLk
1oLal of N4063480982 recovered on classlfled faclllLles ln pasL 24 monLhs
kLSLAkCn DLVLLCMLN1
1o brldge Lhe knowledge gap on Lhe houslng slLuaLlon ln 2010 l,8n's 8esearch uocumenLaLlon unlL
carrled ouL a survey on houslng dellvery ln Lhe lC1 and a markeL survey of bulldlng maLerlals ln all
geopollLlcal zones of Lhe counLry


IM8N
S1kA1LGIC ICCUS LANS
Conso||date on cap|ta| market act|v|t|es
wlLh lssuance of subsequenL Lranches of lLs n100 bllllon bond Lo reflnance sale of lC
nonessenLlal resldenLlal houses ln lC1
1o lssue morLgage bonds based on l,8n's flnanclal sLrengLh and/or governmenL
guaranLee
1o Lake advanLage of lnvesLor appeLlLe for bonds
Support |ega| and regu|atory framework rev|ew
AmendmenL/replacemenL of unfrlendly houslngrelaLed laws
CollaboraLlng wlLh naLlonal Assembly CommlLLees on Pouslng
Conso||date NnI co||ect|on and fund|ng operat|ons
lncrease ln nPl collecLlons by compllance of nonparLlclpaLlng sLaLe local
governmenLs Lhe organlsed prlvaLe secLor Lhe selfemployed
CreaLlon of 8 Zonal Cfflces for more effecLlve coverage
lnLroduclng nPl ecollecLlon plaLform plloL scheme for lC1 ,uAs
Commencement of Commerc|a| Lend|ng Cperat|ons
uslng caplLal markeL resources applled as markeLdeLermlned rlskbased prlced loans
Lxpand mortgage f|nanc|ng to nonsa|ar|ed |nforma| sector
whlch conLrlbuLes as much as 63 of Cn 90 of new [obs ln Lhe counLry 80 of all non
agrlculLural employmenL and 60 of urban [obs vanguard SepL 2008
Servlce dellvery channels are Lrade groups unlons and houslng cooperaLlves mlcroflnance
lnsLlLuLlons
Lncourage format|on of hous|ng cooperat|ves
1o expand morLgage flnance Lo LargeL groups (Leachers nurses mlsslon groups (eg CaLhollc
mlsslons organlsed lslamlc organlsaLlons) Lrade groups eLc
Attract fore|gn fund|ng |nvestments
lnLeresLs by Amerlcan Chlnese korean Saudl Arablan lnvesLors
SLraLeglc advanLage as a lCSponsored enLlLy for lnvesLors Lo channel lnvesLmenLs lnLo local
economy
Introduct|on of Innovat|ve Mortgagere|ated roducts
,orLgage and 1lLle lnsurance
W Lo mlLlgaLe morLgagecredlL rlsks for lenders
W lncreases/sLlmulaLes morLgage orlglnaLlons
W AdvanLage of lower cosLs of morLgages (affordablllLy) based on hlgher volumes
8eal LsLaLe lnvesLmenL 1rusLs (8Ll1s)
- Covered 8onds
- 8enLal ,arkeL uevelopmenL roducLs
- SecurlLlsaLlon
IM8N
1nL CnALLLNGLS
1 INADLUA1L CAI1AL 8ASL
Low cap|ta||zat|on |n compar|son w|th s|m||ar secondary mortgage |nst|tut|ons wor|dw|de
l,8n's caplLal base ls currenLly equlvalenL Lo uS$16m compared Lo an average of
uS$138m held by slmllar secondary morLgage lnsLlLuLlons
2 PlCP CCS1 Anu uLLA? ln ,C81CACL L8lLC1lCn
3 nLLu 1C 8LvlLW C8n 8uuLn1lAL CuluLLlnLS lC8 8LAL LS1A1L LLnulnC
1o be more conduclve Lo Lhe longLerm naLure of morLgage lendlng
4 CC8 lnlC8,A1lCn S18uC1u8LS
lnvesLmenL ln lnformaLlon lnfrasLrucLure Lo lmprove lenders' capablllLy Lo assess rlsk
CredlL 8ureaus
8eal LsLaLe lnformaLlon Agencles
roperLy valuaLlon Companles
3 CC,LlAnCL Wl1P 1PL nPl AC1
8y banks lnsurance companles and organlsed labour
only 33m ouL of 30m workers are reglsLered
employers noL remlLLlng deducLlons Lo l,8n or noL deducLlng aL all
1nL WA ICkWAkD
IM8N commends Aso Sav|ngs Loans |c for the |n|t|at|ve to organ|se a forum for stakeho|ders to
showcase products and serv|ces
IM8N appea|s to stakeho|ders |n the hous|ng |ndustry to work together towards the co||ect|ve goa| of
ensur|ng that every N|ger|an owns a home at affordab|e pr|ces
1 ndustriaI DeveIopment Centers (DCs)
Essentially, the DC were established to provide extension services to
the SMEs in such areas as project appraisal for loan application, training of
entrepreneurs, managerial assistance, product development, production
planning and control, as well as other extension services. The first DC was
established in Owerri in 1962 by the former Eastern Nigeria Government,
Ministry of Trade and ndustry, and was taken over in 1970 by the Federal
Government. Subsequently, more DCs were established at Zaria,
Oshogbo, Maiduguri, Abeokuta, Sokoto, Benin City, Uyo, Bauchi, Akure,
lorin, Port Harcourt, Kano and korodu. The DCs were poorly
implemented as they were inadequately equipped and funded
2. SmaII ScaIe ndustries Credit Scheme (SSCS)
n 1971, the Federal Military Government set up the Small ndustries
Development Programme to provide technical and financial support for the
SMEs. That led to the creation of the Small ndustries Credit Fund (SCF),
which was formally launched as the Small Scale ndustries Credit Scheme
(SSCS) in the third National Development Plan, 1975- 1980. The scheme,
which operated as a matching grant between the Federal and State
Governments, was designed to make credit available on liberal terms to the
SMEs and was managed by the States' Ministries of ndustry, Trade and
Co-operatives. The success of the scheme was constrained by the dearth
of executive manpower to supervise and monitor projects. Thus, many
unviable projects were funded, leading to massive repayment default.
. The Nigerian Bank for Commerce and ndustry (NBC)
The Nigerian Bank for Commerce and ndustry (NBC) was set
up in 1973 to provide, among other things, financial services to the
indigenous business community, particularly the SMEs. The NBC
operated as an apex financial institution for the SMEs and also
administered the SME 1 World Bank Loan Scheme under which total
5
credit amounting to N241.8 million were approved between 1981 and
1988 while actual disbursements were 36.5 per cent lower than the
approvals during the period. The bank also financed a total of 126
projects under the World Bank loan scheme, some of which were
however cancelled due to the failure of the project sponsors to
contribute their counterpart funding. The NBC suffered from
operational problems, culminating in a state of insolvency in 1989 and
absorption into the newly established Bank of ndustry in 2002.
. The Nigerian ndustriaI DeveIopment Bank (NDB)
The Nigerian ndustrial Developmental Bank was established in 1962
with the primary mandate of providing medium to long-term loans for
investments in industrial activities. Although its loan portfolio covers mainly
large-scale industries, the bank established special units to focus on SMEs.
An attractive feature of NDB's financing programme was its policy of equity
participation in some of the projects it financed. t disbursed a total of
N174.6 million to the SMEs between 1980 and 1988 and was also
responsible for the bulk of credit delivery to the sector under the World
Bank SME loans scheme, accounting for more than 80 per cent of the
total amount of disbursements. Arising from financial and other constraints,
NDB was merged with similar institutions to form the newly established
Bank of ndustry.
7. The NationaI Economic Reconstruction Fund (NERFUND)
Following the adoption of the Structural Adjustment Programme
(SAP) in 1986 and the subsequent tightening of monetary policy, many
SMEs found it difficult to secure finance for their working capital and
7
investment purposes. n order to bridge the observed widening
resource gap for the SMEs, the Federal Government set up the
National Economic Reconstruction Fund (NERFUND), effective 9th
January, 1990 with the CBN as one of the facilitating institutions. t
was aimed at providing medium to long-term loans (5-10 years), to
SMEs at concessionary rates of interest, thereby removing one of the
most formidable handicaps to SME development. Between 1990 and
1998, NERFUND disbursed US$144.9 million (foreign exchange
component) and N681.5 million (Naira component) to support 218
projects. NERFUND lending activities were seriously constrained by
the impact of Naira devaluation which worsened the burden of debt
servicing under the programme in 2001. NERFUND was merged with
two other DFs to form the Bank of ndustry.
.0 THE EMERGENCE OF THE SMALL AND MEDUM NDUSTRES
EQUTY NVESTMENT SCHEME (SMES)
.1 Background
The Small and Medium ndustries Equity nvestment Scheme was
initiated not only to bridge the dearth of long-term finance, but also to deal
with other bottlenecks to small and medium scale industries development in
Nigeria.
The Bankers' Committee at its 246th meeting held on December 21,
1999 took a decision to the effect that 10 per cent of banks' profit before tax
should be channeled into equity investments in small-and-medium-scale
industries (SM). A Sub-Committee was, thereafter set up to fashion out
the modalities for implementing the scheme. After reviewing the report of
the sub-committee, the Bankers' Committee contracted Messrs African
Development Consulting Group Limited (ADCG) to conduct a full-scale
study on the programme.
ADCG submitted its report in October, 2000, which, among others,
supported the initiative and recommended the modality for its
implementation. The Bankers' Committee thereafter directed the
Subcommittee
on SM to draft the Operational Guidelines and Stakeholders
Responsibilities for the scheme. These two documents along with the
Guidelines for the Beneficiaries were approved by the Bankers' Committee
on June 19, 2001. The Guidelines outlined the objectives of the Scheme,
definition of SM, mechanism for the management of the funds, the
coverage of its activities, among others. The Small and Medium ndustries
Equity nvestment Scheme was formally launched by the President of the
Federal Republic of Nigeria, Chief Olusegun Obasanjo, on August 21,
2001.
13

.2 Features of the Scheme
The initiative, in addition to providing finance, also requires banks to
identify, develop and package viable industries with enterprising customers.
Through this scheme, banks are expected to jump start the real sector of
the economy by providing venture capital that would spearhead the
restructuring and financing of SMs, many of which, have become
moribund, owing partly to inadequate funding. The main features of the
scheme include the following:
Objectives
The specific objectives of the scheme are:
(i) To facilitate the flow of funds for the establishment of new SM
projects, reactivation, expansion and modernization or
restructuring of on going projects.
(ii) To stimulate economic growth, develop local technology and
generate employment.
Definition of A SmaII and Medium ndustry
For the purpose of the scheme, a small-and-medium-scale industry is
defined as any enterprise with a maximum asset base of N200 million,
excluding land and working capital, with the number of staff employed by
the enterprise not less than 10 and not exceeding 300.
Focus and Content of the Scheme
The 10 per cent of the profit before tax (PBT) to be set aside annually
shall be invested in equity in small and medium industries. This will
eliminate the burden of interest and other financial charges expected under
normal bank lending. The scheme also includes the provision of financial,
advisory, technical, and managerial support from the banking industry.
14
Activities Covered by the Programme
The range of activities in respect of which the funds shall be applied
are those in the real sector of the economy and related services as listed
below, excluding trading activities:
Agro-allied
nformation technology and telecommunication
Manufacturing
Educational establishments
Services
Tourism and leisure
Solid minerals
Construction
EIigibiIity for funding
To be eligible for equity funding under the scheme, a prospective
beneficiary shall:
(i) register as a limited liability company with the Corporate Affairs
Commission and comply with all relevant regulations of the
Companies and Allied Matters Act (1990), such as filing of annual
returns, including audited financial statements;
(ii) comply with all applicable tax laws and regulations and render
regular returns to the appropriate authorities; and
(iii) engage or propose to engage in any of the businesses set out
above.
15
ModaIities of the Scheme
Funds invested by participating banks shall be in form of equity
investment in eligible industries.
Equity investment under the scheme may be in form of fresh cash
injection and/or conversion of existing debts owed to a participating
bank.
A participating industry may obtain more funds by way of loans from
banks in addition to equity investment under the scheme.
Eligible industries are free to approach any bank, including those they
presently have relationships with, to seek funding under the scheme.
Prospective beneficiaries are encouraged to seek the opinion of third
party consultants such as lawyers, accountants and valuers in
determining the value to be placed on the assets and capital of their
businesses in order to determine a fair price during negotiations with
the banks.
Recommendations from ndustriaI Associations
The recommendations of industrial associations, particularly
Manufacturers Association of Nigeria (MAN), National Association of
Chamber of Commerce, ndustry, Mines and Agriculture (NACCMA),
National Association of Small and Medium Scale
Enterprises (NASME) and National Association of Small ndustries
(NASS) and recognized NGOs engaged in entrepreneurial development
and promotion of small and medium scale industries will be an additional
advantage in assessing funds under the Scheme.
Options for Banks' Participation in the Scheme
Under the scheme, banks' participation in the financing of SM shall be
through the following:
16
Banks' direct equity participation: Under this arrangement banks
acquire shares in new or existing businesses after putting in place
necessary framework (financial, management, legal, etc). For this,
the bank would be represented on the Board and/or management
team, thereby ensuring the best possible practices for the project's
success. A bank may instead establish a subsidiary to operate the
scheme on its behalf.
Equity participation through a venture capital company: For this,
banks will pool their 10 per cent pre- tax profit together and channel it
through a venture capital company or fund managers. The bank may
be represented on the Board of the venture companies, while venture
companies will essentially be represented on the Board and
Management of the SM.
. Committees on SMES
From the beginning, the Bankers' Committee set up a Sub-committee
on SMES, comprising representatives of the Central Bank of Nigeria and
the Deposit Money Banks. This Sub-committee articulated the Scheme,
interviewed and selected the Consultant that carried out the study and
prepared the guidelines for its operations. All these were approved by the
Bankers' Committee. Since the Scheme came into being, the
Subcommittee
has been responsible for monitoring the implementation of the
Scheme and makes recommendations to the Bankers' Committee.
There is also a Presidential Advisory Committee on SMES,
comprising representatives of the Federal Ministry of ndustry, the
Organised Private Sector, the Office of the Secretary to the Government of
the Federation and the Bankers' Committee. The Committee is charged
with the responsibility of advising the Government and submitting periodic
assessments on the Scheme.

5.0 PROSPECTS AND CONCLUSON
Given the enthusiasm shown by the banks in coming up with this
Scheme, the advantages such as provision of financial advisory services,
entrepreneurial management and risk capital to the SMs, as well as the
progress so far, there is very good prospect for the scheme. This is
particularly anchored on the growing needs for these facilities by the SMs.