Posted by From Kunle Aderinokun in Abuja on
The Central Bank of Nigeria (CBN) has lamented that, as at the end of May 2006, about N25.967 billion remained unused out of N40.735 billion.....
The Central Bank of Nigeria (CBN) has lamented that, as at the end of May 2006, about N25.967 billion remained unused out of N40.735 billion, set aside by commercial banks in the Small and Medium Industries Equity Investment Scheme (SMIEIS) as equity financing for small and medium entrepreneurs (SMEs).
The banks contribute 10 per cent of the annual profit before tax into the SMIEIS to support small and medium entrepreneurs.
The apex bank in a Progress Report from its Development Finance Department disclosed that up to the end of May, banks contributed a total of N40.735 billion and invested only N14.768 billion in 225 projects in different sector of the economy.
Out of these 225 projects, only 16, valued at N2.665 billion, the CBN pointed out, were verified and confirmed.
Of the N40.735, the 25 consolidated banks pooled N38,225,933,000 while failed banks and liquidated banks put down N2,483,879,000 and N25,341,000 respectively.
Giving a sectoral breakdown of investment by banks in the 225 projects, the banking watchdog revealed that, 'the total value of investments recorded in the real sector amounted to N7.500 billion (50.79%) in 145 projects, while the service related sector accounted for investments amounting to N7.268 (49.21%) in 80 projects."
As for the geographical distribution, the CBN report showed that 24 states had benefited from the scheme, pointing out that 'the highest number of projects invested under the Scheme was in Lagos State, with a total investment of N7.083 billion (47.96 per cent) in 131 projects."
'Cross River State followed in terms of volume of investment with 5 projects, which amounted to N2,892 billion (19.59%) and Ogun State with 13 projects with investment of N0.487 billion (3.30%), while other States of the Federation including the FCT collectively accounted for the remaining investments worth N4,304,842,021.33," the CBN also stated.
It however noted that, Adamawa, Bayelsa, Borno, Ebonyi, Gombe, Imo, Jigawa, Katsina, Kebbi, Kogi, Niger, Taraba and Yobe States were yet to record any investments.
Further analysis revealed that in the real sector, investment in 24 Agro-Alied projects including woodwork & water bottling amounted to N756,883,000 representing 5.13 per cent of the total fund; 108 manufacturing projects including printing & publishing attracted N 5,572,513,960.11 (37.73 per cent ); 10 Construction projects including quarrying received N1,111,288,000.00 (7.53 per cent) and three Solid Minerals projects got N5 9,440,000.00 (0.40 per cent).
In the service-related enterprises Information, the bank said 21 projects in Technology & telecommunications N1,749,763,999.04, which represented 11.85 per cent of the total amount; four Educational Establishment projects got N133,935,000.00 (0.91 per cent) 47 Services projects got N2,269,921,0-86.18 (15.37per cent); eight Tourism & Leisure projects got N3,114,120,000.00 (15.37 per cent).
In terms of the geographical spread of the total amount disbursed for projects across the states of the Federal, the apex bank stated thus: four projects in FCT costing N255,000,000.00 (1.73 percent of total); eight projects in Abia at N523,400,000.00 (3.54 per cent); one project in Akwa Ibom at N45,000,000.00 (0.30 per cent); six projects in Anambra at N359,529,776.22 (2.43 per cent); one project in Bauchi at N68,400,000.00 (0.46 percent); one project in Benue at N30,000,000.00 (0.20); five projects in Cross River at N2,892,455,906.55 (19.59 per cent); six projects in Delta at N245,610,000.00 (1.66 per cent); eight projects in Edo at N430,034,874.00 (2.91 per cent); Two projects in Ekiti at N57,600,000.00 (0.39 per cent); two projects in Enugu at N93,224,000.00 (0.63 per cent); five projects in Kaduna at N156,000,000.00 (1.06 percent); seven projects in Kano at N323,898,346.00 (2.19 per cent); one project in Kwara at N15,440,000.00 (0.10 per cent); 131 projects in Lagos at N7,083,107,117.45 (47.96 per cent); one project in Nasarawa at N102,000,000.00 ( 0.69 per cent); 13 projects in Ogun at N487,460,000.00 (3.30 per cent); four projects in Ondo at N157,700,000.00 (1.07 percent); one project in Osun at N 80,000,000.00 (0.54per cent); seven projects in Oyo at N265,530,000.00 (1.80 per cent); two projects in Plateau at 54,267,029.00 (0.37 per cent); seven projects in Rivers N964,542,996.11 (6.53 per cent); one project in Sokoto at N27,665,000.00 (0.19 per cent) and one project in Zamfara at N50,000,000.00 (0.34 per cent).