| Small and medium industries Equity Investment Scheme”(SMIEIS) |
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The Banker’s Committee is a body constituted by representatives of banks in Nigeria. The scheme was approved at their 246th meeting on December 21,1999 According to them, this was a response to President Obasanjo’s concern and policy measures for the promotion of Small and Medium Industries(SMI) as a vehicle for rapid industrialisation, sustainable economic development, poverty alleviation and employment generation. The Scheme requires all banks in Nigeria to set aside 10% of their profit before tax (PBT) for equity investment in small and medium scale industries. The scheme commenced on June 19th2001. The scheme among other things assists the establishment of new, viable SMI projects, thereby stimulating economic growth, development of local technology, promotion of and creation of employment & indigenous entrepreneurship.The funds will be available for projects in the real sector of the economy which include agro- allied, information technology and telecommunications, manufacturing, educational establishments, services (directly related to production in the real sector to enhance production), tourism and leisure, solid minerals, construction and any other activity as may be determined from time to time by the banker’s committee. To qualify for the scheme, an enterprise, in addition to being engaged in any of the activities listed above, must have a maximum asset base of N200million excluding land and working capital; with the number of staff employed by the enterprise not less than 10 or more than 300.The enterprise must be registered as a limited liability company with the Corporate Affairs Commission and comply with all relevant regulations of the Companies and Allied Matters Act(1990)such as filing of annual returns including audited financial statements. Comply with all applicable tax laws and regulations and render regular returns to the appropriate authorities. Timing of investment exit shall be a minimum of 3years |