SMEIS,MEANING AND HISTORY

[Anonymous]

SMEIS:Small and Medium Industries Equity Investment Scheme is a volantry initiatives of the bankers committee whose membership inclyudes all managing directors and chief executive  officers (MD/CEO's) of banks in Nigeria,which requires all licensed banks in Nigeria to set aside 10% of their profit before tax (PBT)for equity investment in and promotion of small and medium enterprises(SME's).

SMEIS is intended to stimulate economic growth and development,develop local technology and generate employment.As at May 2003,the paticipating banks for equity investment under this scheme have set aside about #18.3bn for alternative approach to financing SME's.

The goal of this scheme is to reduce SME's borowing and consequent relieve them from interest and other bank charges that are not favourable to their capital structure.It also espouses the provision of finacial,advisory,technical and managerial support to SME's by banks.
I hope to discuss operational modalities of SMEIS in my next posting.

Patronize it!it is your opportunity to grap.