At the launch of N220 billion fund disbursements for the development of micro, small and medium enterprises (MSMEs) by the Central Bank of Nigeria (CBN) in Abuja, President Goodluck Jonathan said the Federal Government would establish a wholesale Development Finance Institution (DFI) to provide long term funds for industrial development.

The fund’s disbursement was the highlight of CBN’s Eighth Annual MSME Finance Conference and Entrepreneurship Awards, with the theme “MSMEs Financing in Nigeria: Past, Present and Future”.

The President said the proposed institution was part of measures to enhance the contribution of MSMEs to the country’s economic growth and development.

He said the impending DFI would provide long term finance spanning up to 15 years for relevant entrepreneurs and industrialists, especially people involved in tree crop production.

Jonathan also disclosed plans by the Federal Government to restructure existing DFIs for better performance and improved access to finance by MSMEs.

“MSMEs are recognised all over the world as the engine of growth in any development-oriented economy. Besides their inherent labour-intensive production processes, they also provide a viable platform for job-creation globally.

“All over the developed world, the contributions of MSMEs to GDP (Gross Domestic Product) average about 47 per cent. This shows clearly how important MSMEs are to us. As reported by SMEDAN (Small and Medium Enterprises Development Agency of Nigeria), there are about 17.3 million SMEs in Nigeria.

The President however, insisted “this is quite small, compared to countries like Indonesia, which is slightly more than us (Nigeria) in terms of population, but has about 40 million (SMEs).