CBN Funding Schemes Explained: AGSMEIS and the MSME Development Fund

Beyond the headline intervention funds, the Central Bank of Nigeria runs two standing schemes that Nigerian SMEs consistently underuse: the Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS) and the Micro, Small and Medium Enterprises Development Fund (MSMEDF). Both offer patient, below-market capital — but each has its own gatekeepers and process.

AGSMEIS: funding seeded by the banks themselves. Established by the Bankers' Committee in February 2017, AGSMEIS requires all deposit money banks to set aside 5% of their profit after tax annually to fund agribusinesses and SMEs. The scheme exists to improve access to finance, create jobs and develop the agricultural value chain.

How AGSMEIS works in practice. Applications run through the AGSMEIS portal, but there is a mandatory first step: training with an accredited Entrepreneurial Development Institute (EDI). You create an account, complete the EDI training, submit a business plan, and only then does your loan application proceed — routed through the EDI to NIRSAL Microfinance Bank (NMFB). The current maximum term loan is ₦3 million, subject to periodic review, and the scheme also offers an equity investment window for qualifying businesses.

Who AGSMEIS suits. Agribusinesses anywhere along the value chain — input supply, primary production, processing, logistics, marketing — plus non-agri SMEs that complete the EDI track. Because training and a vetted business plan are built into the process, applicants who prepare properly face far less competition than in open grant windows.

MSMEDF: wholesale funding through your own bank. The MSME Development Fund, established in August 2013, works differently: you do not apply to the CBN. The CBN disburses wholesale funding to Participating Financial Institutions (PFIs) — microfinance banks, finance companies, cooperatives, NGO-MFIs, development finance institutions and deposit money banks — which on-lend to you. The fund prescribes a 50:50 split between micro enterprises and SMEs, with 60% of the wholesale commercial component earmarked for women-owned businesses, 10% for start-ups, and 2% for economically active persons with disabilities.

How to access MSMEDF. Apply directly to a participating institution — typically your microfinance or commercial bank — and ask specifically for facilities under the MSMEDF window. The PFI appraises your application for viability and forwards eligible requests to the CBN, which disburses to the PFI on your behalf. BOI and the deposit money banks participate under the SME window.

The practical difference. AGSMEIS is a defined programme with a portal, mandatory training and a capped ticket — good for first-time borrowers and agri-value-chain businesses. MSMEDF is a funding channel inside institutions you already bank with — good for established SMEs with existing banking relationships. Many qualifying businesses can pursue both tracks in parallel.

Both schemes reward preparation: registered entities, clean records and a credible business plan. Ashflex assesses SMEs against these windows and prepares the documentation banks and EDIs expect. Book a consultation to find out which scheme fits your business.