CHAPTER FOUR 

 4.0 ROLES AND RESPONSIBILITIES OF STAKEHOLDERS

In order to achieve the desired objectives, the responsibilities of the stakeholders shall include:

 4.1 Central Bank of Nigeria The CBN shall: 

a) Provide the initial Seed Fund 

b) Ensure that other stakeholders co-finance the Fund 

c) Act as Fund Managers 

d) Chair the Steering Committee 

e) Determine the limits of the Fund. 

f) Specify the rate at which PFIs on-lend under the Fund 

g) Absorb the subsidy which may arise in the pricing of the loans to borrowers 

h) Provide regulatory and supervisory oversight 

i) Determine sanctions under the Fund

j) Review the Fund Guidelines as may be necessary 

k) Appraise Applications from PFIs 

l) Release funds to qualified PFIs 

m) Carry out verification/monitoring of projects under the Fund 

n) Receive and process periodic returns from PFIs 

o) Ensure the implementation of the Fund and publish periodic report on its performance 

p) Retrieve funds from PFIs at the expiration of the loan tenor or infractions on the Guidelines 

q) Build capacity of stakeholders. 

4.2 Non-DMB /DFI Participating Financial Institutions (PFIs) All Non-DMB/DFI PFIs shall be eligible to:

 a) Grant credit facilities to MSMEs 16 

b) Approve loan requests under the Fund based on normal business consideration 

c) Open dedicated account with their correspondent banks for this window and forward details of the account to the CBN 

d) Issue a letter authorizing the CBN to debit its account with the correspondent bank for recovery of outstanding principal and interest on the loan from the Fund 

e) Disburse released funds to eligible borrowers within 5 working days 

f) Ensure that 60 per cent of the accessed fund is disbursed to women entrepreneurs. 

g) Put in place appropriate institutional arrangements for loan disbursement, monitoring and recovery. 

h) Monitor the projects during the loan period. 

i) Obtain credit information on borrowers from the Credit Bureaux 

j) Report all disbursed loans to at least 2 Credit Bureaux 

k) Render periodic returns on the performance of the loans under the Fund to the Central Bank of Nigeria as may be specified 

l) Comply with the Guidelines of the Fund 

m) Any other responsibility that may be required by the CBN