2017-03-01 | OFI/7/69

Accounting Treatment for Micro, Small and Medium Enterprises Development Fund (MSMEDF)

The Central Bank of Nigeria's Other Financial Institutions Supervision Department provides guidance on the accounting treatment for Micro, Small, and Medium Enterprises Development Fund (MSMED) received by financial institutions. For direct funding, the funds should be treated as On-Balance Sheet items, with separate credit schedules and adherence to prudential guidelines for loan loss provisioning. Indirect funding through State Governments/FCT is considered Off-Balance Sheet, and the financial institution acts as a secondary obligor. Strict adherence to memorandums of understanding and proper disclosure in audited financial statements are required.

Nigeria

Central Bank of Nigeria

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