Regulatory Alerts2017-04-06 | FPR/DIR/GEN/CIR/06/016Guidelines on the Regulation and Supervision of Non-Interest (Islamic) Microfinance Banks in Nigeria
The Agri-Business/Small and Medium Enterprises Investment Scheme (Agsmeis) is an initiative introduced by the Central Bank of Nigeria through the Bankers' Committee to support agribusinesses and small and medium enterprises in Nigeria. Banks contribute 5% of their annual profit after tax to the scheme, which aims at providing long-term, low-cost funding for the development and growth of these sectors. The scheme also encourages capacity building, technology adoption, and promotion of non-interest finance principles. It is managed by a Secretariat under the Development Finance Department of CBN, with supervision from the Bankers' Committee and collaboration from participating banks. Key Stakeholders: 1. Central Bank of Nigeria (CBN) - Developer and supervisor of the scheme. 2. Bankers' Committee - Provides guidance, monitors implementation, and oversees joint collaborative efforts. 3. Board of Trustees - Conducts final due diligence on applications, approves eligible projects for funds release by CBN, and reports to the Bankers - [cnb.gov.ng](https://www.cbn.gov.ng/downloads/170214_ENGLISH.pdf)) CONCIUM SUMMARY: The Agri-Business/Small and Medium Enterprises Investment Scheme, or Agsmeis for short, is a program of the Central Bank of Nigeria (CBN). It was introduced by CBN in 2017. The main purpose of this scheme is to help businesses within the agriculture sector as well as small and medium-sized companies (SMEs) by providing them with long-term, low-cost funding for their growth and development. To do this, banks are asked to contribute 5% of their annual profit after tax to a special fund called the 'Agsmeis Fund'. This money is then used to provide financial support to businesses within these sectors in the form of equity participation. Apart from providing funds, this scheme also focuses on other aspects like capacity building, technology adoption, and promotion of non-interest finance principles. The scheme's overall goal is to help these businesses grow, and ultimately contribute positively towards Nigeria's economic development and growth. The detailed information about the scheme is available through different documents. These include: 1. 'Guidelines for the Implementation of the Agri-Business/Small and Medium Enterprises Investment Scheme (Agsmeis)'. This is the main document that provides a comprehensive overview of all the rules, policies, guidelines, processes and procedures that have been set up by CBN for implementing this scheme. 2. 'The Bankers' Committee - The Role of the Board of Trustees and the Project Review Committee in the Implementation of the Agri-Business/Small and Medium Enterprises Investment Scheme'. This document provides specific information about how exactly the roles, responsibilities, and functions have been assigned to the different committees that are involved in this scheme. 3. 'The Bankers' Committee - The Role of the Board of Trustees and the Project Review Committee in the Implementation of the Agri-business/Small and Medium Enterprises Investment Scheme'. This document also provides more detailed information about how exactly the roles, responsibilities, and functions have been assigned to the different committees that are involved in this scheme. In a nutshell, Agsmeis is a funding program designed by CBN with the primary objective of supporting businesses within the agriculture sector as well as small and medium-sized companies (SMEs) through long-term, low-cost funding provision along with also focusing on other areas like capacity building, technology adoption, and promotion of non-interest finance principles. The scheme was introduced in 2017 and is still ongoing.