Seven Nigerian banks have collectively invested N257.1 billion in small and medium-scale enterprises (SMEs). The investments highlight the growing role of the SME sector in driving inclusive growth and job creation in Nigeria.
A BusinessDay review of the banks’ financial statements for H1 2025 and FY 2024 shows that the funds were deployed through the Agri-Business/Small and Medium Enterprises Equity Investment Scheme (AGSMEEIS) and the Small and Medium Enterprises Equity Investment Scheme (SMEEIS).
Stanbic IBTC Bank leads the group with N107.3 billion in contribution to AGSMEEIS. GTCO Holdings follows with N81.1 billion. Fidelity Bank has N28.6 billion, while United Bank for Africa (UBA) holds N22.2 billion.
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Providus Bank has N9.9 billion in AGSMEEIS and SMEEIS. First Bank Holdings reported N6.1 billion, and Wema Bank holds N1.9 billion.
The SMEEIS initiative began in 1999. At the time, the Central Bank of Nigeria (CBN) directed banks to set aside 10 percent of their Profit After Tax (PAT) for equity investments in small and medium-scale industries.
The policy was reviewed in 2006. After five years, the mandatory contribution was reduced to 5 percent of PAT. Although the scheme is no longer compulsory, several banks still maintain SMEEIS reserves.
In 2017, the CBN introduced the AGSMEEIS scheme. It was designed to channel more funding into agriculture and small business ventures across the country.
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A review of financial statements shows that some banks continue to manage both SMEEIS and AGSMEEIS reserves. GTCO Holdings, for instance, recorded a SMEEIS balance of N4.2 billion, which remained unchanged between December 2024 and June 2025. The group also holds N76.9 billion under its AGSMEEIS reserve.
The identities of the small businesses benefiting from these investments are not publicly disclosed. However, the NIRSAL Microfinance Bank (NMFB)plays a key role in disbursing these funds under the CBN’s supervision.
According to data from NMFB, about 32,355 businesses have benefited from the interventions. The total value of loans and equity funding provided so far stands at N118.4 billion.