The Agri-Business, Small and Medium Enterprises Investment Scheme (AGSMEIS) is an initiative of the Central Bank of Nigeria (CBN) to improve agriculture, small and medium business enterprises in the country.
It is a Non-Interest Financial Institutions (NIFIs) Non-Interest Fund Application initiated to assist young youths between the ages of 18 – 35 years towards food security, job creation and economic diversification.
No collateral is needed.
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Frequently asked questions by some of our viewers and readers that wish to apply for these funds are:
- How does AGSMEIS Non-Interest Fund Work?
- How can I get these funds from Agri-Business, Small and Medium Enterprises Investment Scheme (AGSMEIS)?
- What are the necessary requirements to apply for these funds?
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All these questions will be answered below as you read on.
How does AGSMEIS Non-Interest Fund works
- The CBN would create a Fund to be known as ‘AGSMEIS Non-Interest Fund’ that will be domiciled in a dedicated account with the apex bank.
- Each non-interest deposit Bank (full-fledged or window) was to set aside 5% of its Profit after Tax (PAT) annually as contribution to the Fund.
- Each non-interest Deposit Bank was also to transfer its contribution to the CBN not later than 10 working days after the Annual General Meeting (AGM) of the participating bank.
- Eligible activities under the Scheme are businesses across the agricultural value chain, covering production, inputs supply, storage, processing, logistics and marketing.
- Others included MSMEs in the real sector including manufacturing, ICT, mining, petrochemicals and the creative industry as well as other activities as the CBN may determine from time to time.
How to access fund
The application of the Fund shall be categorized into three broad components. They are debt, equity and developmental components. They are:
- The debt component shall constitute 50% of the fund which shall be disbursed as financing to eligible businesses through Non-Interest Deposit Money Banks.
- Asset purchased shall be registered with the National Collateral Registry (NCR).
- Financing limit: N10,000,000
- Mark-up: 5% per annum
- Tenor: Up to 7 years (depending on the nature/gestation period of the
- Moratorium: Maximum of 18 months for principal and 6 months on mark-up.
- Applicants duly completed application form.
- Applicants Bank Verification Number (BVN) is required
- Applicants Certificate of Training from recognized Entrepreneurship Development Institution (EDI) or evidence of membership of organized private sector association is required
- Applicants Letter of Introduction from any of the following: Clergy, Village Head, District Head, Traditional Ruler, senior civil servant etc (for individuals, micro-enterprises only) is required
- Applicants Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990) is required
How to apply
Interested and qualified applicants that meet all the requirements listed above, should Register here
Note: Follow all instructions carefully and fill the application form correctly with verified details.