Sanusi Lamido Sanusi: Supporting the development of entrepreneurship
in Nigeria
Keynote address by Mr Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria, at
the launching of the South-South Entrepreneurship Development Centre (EDC), Calabar,
2 September 2013.
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Protocol
1.0 It is my honour and pleasure to address this audience on this occasion of the
launching of the South-South Zone, Entrepreneurship Development Centre, located here in
Calabar, Cross River State. The high-level turnout at this event, is an eloquent testimony to
the commitment of Nigerians to participate in worthy development efforts that hold promise
for improving the lot of our citizenry, particularly the youth.
2.0 It is evident that we as a nation are confronted with a wide range of developmental
challenges. The 2012 general household survey conducted by the National Bureau of
Statistics, revealed that 23.9% of the adult working population is unemployed. More
worrisome is the fact that the unemployment rate has exhibited a worsening trend, rising
from 8.2% in 1999 to the 23.9% in 2011. In Cross River State specifically, the rate increased
from 7.9% in 2002 to 18.2% in 2011. This would obviously not only have a significant effect
on the psychology of the individuals concerned, but also have a destabilizing impact on the
wider society.
3.0 In its bid to support efforts to reverse these glaring development challenges, the
Central Bank of Nigeria has over the years, continued to partner with Government at all
levels and some stakeholders to initiate policies, programmes and schemes that will impact
the lives of youth in the country.
4.0 Ladies and Gentlemen, the main purpose of our gathering this morning is to officially
flag-off the Central Bank of Nigeria supported Entrepreneurship Development Centre located
in the South-South zone. The centre would be expected to serve Akwa Ibom, Rivers,
Bayelsa, Edo, Delta and Cross River States. Consequently, it will advertise and enroll
trainees from these States.
5.0 This initiative commenced 2008 in three locations namely; Onitsha (South-East),
Kano (North-West), and Lagos (South-West). Between 2008 and 2013, the three centres
have trained a total of 41,828 persons, counseled 94,259 entrepreneurs and have directly led
to the creation of 13,124 jobs. Furthermore, a total of 1,743 trainees were linked to financial
institutions from which they obtained loans amounting to to start or expand
N227.84 million
their businesses. This first phase of the CBN-EDC initiative came to an end April 2013
having operated for 5 years. Ladies and Gentlemen, for sustainability purposes, i am pleased
to inform you that the Management of the Bank has extended the tenure of the first phase
CBN-EDCs by an additional three years to enable the host State Governments in the
aforementioned zones key in and participate actively in the enhanced EDC model. The Bank
is therefore in the process of putting together phase 2 of the programme for the South- East,
North-West and South-West zones.
6.0 The modest achievements recorded and the experiences of the EDC have
encouraged the Bank to roll out the project in the remaining three geopolitical zones of
NorthEast (Maiduguri), North- Central (Markudi) and South-South (Calabar). To date the new
centres have trained all together 1,381 participants in the first half of 2013, in spite of
teething challenges faced. I particularly appreciate the Government of Cross River State for
allocating a temporary training venue for the Implementing Agency, Sheild Academy
Partners to commence its training activities before today's official flag-off of this magnificent
building that will permanently host the centre.
7.0 Permit me at this point to take a few minutes to provide a brief highlight on the EDC
to create an understanding of its concept, operational modality and what is required from
stakeholders (Government, CBN, Implementing Agencies, and Financial Institutions etc) to
make the programme a success.
8.0 The EDC provides a platform for State Governments, private sector and the Central
Bank of Nigeria to jointly support entrepreneurship development across the country. The
centres provide facilities for training particularly secondary school leavers and university
graduates to obtain skills on how to identify, choose, and practically engage in profitable
production of goods and services.
The State Government is expected to provide the enabling environment through the
9.0
provision of conducive structure and a site for the centres, while the Central Bank of Nigeria
engages private consultants to independently operate the centres. It is worth reiterating that
the States where the EDCs are located and the implementation agency were selected
through a competitive bidding process to guarantee efficiency and effectiveness in its
operations.
The Governments of the respective States are also expected to enlighten their
10.0
indigenes and provide the required financial and moral support to take full advantage of the
opportunities offered. Trainees/graduates of the EDCs are expected to be attached to
incubation facilities, where they could commence, practice and perfect their chosen
businesses upon graduation before standing independently on their own.
11.0 Ladies and Gentlemen, to reiterate my earlier point, out of 41,828 participants
trained in the pilot phase of the EDCs between 2008 and April 2013, only 1,743, (about
4.17 per cent) of the trainees were linked to financial institution for loans, which we found
quite worrisome as it was an obvious hinderance to achieving the objectives of the EDCs.
This has been one of the major challenges of the programme for which efforts are being
made to address. I am pleased to inform you that the Bank through NIRSAL Plc., the CBN's
Incentive-based, Risk Sharing System for Agricultural Lending, would support trainees in
agricultural value-chain businesses by way of credit guarantees, insurance, technical
assitance and other incentives. Also, the Bank on August 15, 2013, launched the
=N= 220 Billion Micro, Small and Medium Enterprises Development Fund (MSMEDF) which
has a funding window for Financial Institutions, particularly Microfinance Banks, to provide
funding for the financial needs of the EDC graduates. This Fund will provide long-term low
interest funding to eligible MFI, for un-lending to beneficiaries at single digit interest rates.
60% of the Fund is dedicated to businesses owned and managed by women. The Governing
Council of the EDCs is also exploring ways to key in to the Bank of Industry's recently
launched Bottom of the Pyramid Fund for the EDC graduates to access for their chosen
businesses . Let me use this opportunity to urge the Nigerian financial institutions and other
stakeholders here present, to support innovations and services that will enhance the success
of the implementation of the EDC in the South-South. State Governments in the geopolitical
zone are encouraged to set aside funds dedicated to the graduates of the EDC to enable
them start up and expand their businesses. I should also add that the Bank has recently
reviewed the Microfinance Policy to allow State Governments to establish Microfinance
Banks that can provide financial services to micro, small and medium scale entrepreneurs.
12.0 I would want to emphasize that the ultimate goal of the EDC concept is to achieve
the replication of the Centres in each State of the Federation. At this juncture, I would like to
urge others, particularly governments, NGOs and wealthy individuals in society to explore
setting up EDCs, as they can be a valuable conduit for building the entrepreneurial capacity
of people and assisting them to contribute to the economic wellbeing of the country.
13.0 Ladies and Gentlemen, the EDCs hold promise for engaging our youth in productive
and positive activities. It will assist in job and wealth creation, promote growth and
development and checkmate restiveness and other vices in our society. All efforts must
therefore be made to support the realization of its objectives.
14.0 In conclusion, I would like to once again congratulate Sheild Academy Partners and
the Government of Cross River State for winning the bid to be the implementation agency
and host state for the South-South EDC and solicit the participation of all the stakeholders in
the South-South zone to ensure the success of the Centre in the zone.
On this note, I declare the Central Bank of Nigeria- Entrepreneurship Development Centre
South-South geopolitical zone opened and particularly expect the Centre to be a resourceful
Entrepreneurship Centre for the teeming youths of the South-South geopolitical Zone.
15.0 Thank you all for your kind attention.