Regulatory Alerts2016-08-22 | MFD/MDO/GEN/EDP/01/029Guidelines of the Youth Entrepreneurship Development Programme (YEDP)
The guidelines provided here outline the procedures and expectations for Nigeria's Central Bank's MSME Development Fund (MSMEDF) scheme, which offers credit facilities to small and medium-sized businesses with NYSC members as promoters. The following points summarize the key aspects of these guidelines: 1. The purpose of the program is to provide access to finance for small and medium-sized businesses in Nigeria, particularly those run by NYSC members. 2. The fund is managed by a special committee within the Central Bank of Nigeria (CBN). 3. Lending banks must be registered with the CBN to participate in this program. 4. Borrowers must meet specific criteria and submit necessary documentation, including a business proposal and proof of NYSC membership. 5. Interest rates on loans are capped at 9% per annum all charges inclusive. 6. Collateral for these loans should be registered with the National Collateral Registry within two weeks of approval. 7. The CBN conducts monitoring activities and evaluates the impact of the program regularly. 8. Penalties for infractions like delayed disbursements or loan defaults include fines equivalent to a percentage of the outstanding amount. 9. These guidelines are subject to future revisions as needed by the CBN. These guidelines provide a comprehensive framework for implementing and managing this credit facility program, ensuring that it benefits small businesses in Nigeria while maintaining financial stability and accountability.