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How To Access NEDEP Loan in 2022 (Full Guide)

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How To Access NEDEP Loan in 2022

How To Access NEDEP Loan in 2022 (Full Guide)

The National Enterprise Development Programme Loan (NEDEP) 2022 For SMEs and Cooperatives is still ongoing as we will be walking you through the procedure on how to access the loan.

The significance of this can be gauged from the fact that it currently represents 96% of businesses in Nigeria and contributes 75% to national employment. Of the 17.2 million MSMEs in Nigeria, more than 17 million are micro-enterprises.

As such, growth in this sector is directly linked to growth in the economy and employment levels in Nigeria as a whole.

There is no doubt that a well-nurtured and well-structured MSMEs sub-sector can make a significant contribution to job creation, wealth creation, poverty reduction, and sustainable economic growth and development in Nigeria.

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However, many challenges are holding back the potential of MSMEs in Nigeria. The main ones are:

a) Very low access to affordable finance.

b) Poor access to Business Development Service (BDS), and

c) Inadequate infrastructure/high cost of doing business.

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For example, a recent National Bureau of Statistics (NBS)/SMEDAN survey of MSMEs reported that 73.24% of the topmost priority of assistance needed by MSMEs’ operators is finance.

In addition, only 4.2% of 17.2 million MSMEs have been able to access loans or overdrafts from financial institutions while new entrants or start-ups find it practically impossible to access funds from banks.

To address these challenges, the “National Enterprise Development Program (NEDEP)” was launched by the Hon’ble Minister of Industry, Trade, and Investment, Mr. Olusegun Aganga, CON.

The program, which aims to create an estimated 5.0 million direct and indirect jobs between 2013 and 2015, is focusing on skills acquisition, enterprise training/business development services (BDS), and access to finance.

The Enterprise Training / Business Development Services component is being implemented under the One Local Government One Product (OLOP) platform while access to the finance component is being handled by the Bank of Industry (BOI) and by the Industrial Training Fund (ITF). Managing skills acquisition. ).

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The NEDEP, coordinated by Nigeria’s Small and Medium Enterprise Development Agency (“SMEDAN”), is based on experience in successful similar venture development initiatives in Africa and Asia and in OLOP pilot projects in Kano and Niger.

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NEDEP Loan Portal Address: nedep.boinigeria.com/

2. Benefits/Potentials of NEDEP

  • a. It aims to create an estimated 5.0 million direct and indirect jobs
  • b. It will revive the rural economy in rural Nigeria, improve employment opportunities, create wealth and alleviate poverty. This will be done through the establishment of sustainable MSMEs in 774 Local Government Areas (LGAs) based on comparative and competitive advantages.
  • c. Promoting entrepreneurial culture, industrialization of rural areas, enhanced industrial cluster development, increase in the contribution of MSMEs to GDP, increase in export potential, etc.
  • d. Elimination of youth restiveness, militancy, and other social vices (e.g. kidnapping, extremists’ insurgence like Boko haram, prostitution, armed robbery, drug abuse, thuggery, etc).
  • e. Entrenchment of social security system in Nigeria.

3. Attributes of NEDEP

  • a. Delivery by 3 Agencies (SMEDAN, ITF, BOI)
  • b. Formation and registration of Cooperative Societies
  • c. National and State Council on MSMEs
    d. Restructuring of implementing Agencies (SMEDAN, BOI, ITF)
  • e. Implementation of the One Local Government One Product (OLOP) programme.
  • f. Development of One Product for Export in each State
  • g. Upgrading of Industrial Development Centres (IDCs) to MSMEs Clusters
  • h. Provision of Common Facilities & Services
  • i. Continuous Engagement, Monitoring & Reporting System

4. Implementation strategies

  • a. Sensitization and needs assessment
  • b. Selection of products
  • c. Baseline surveys and value chain analysis
  • d. Formation and registration of cooperative societies
  • e. Development of business plans by cooperative societies
  • f. Assessment of business plans and provision of finance
  • g. Access to markets
  • h. Access to equipment/machines
  • i. Entrepreneurship training
  • j. Vocational skills training
  • k. Delivery of Business Development Service (BDS)
  • l. Monitoring and evaluation (impact assessment)

5. Current activity

  • a. Formation and registration of cooperative societies
  • b. Collection of business plans from cooperative societies across the country.

For more information, please visit: https://www.boi.ng/boi-products/fgn-special-intervention-fund-for-msme/

How To Access NEDEP loan from SMEDAN

To get a loan from SMEDAN in its pool, follow these steps:

1. Visit the SMEDAN Credit Information Portal

The first step is to go to the credit information portal. You can access the portal from your computer, tablet or phone.

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2. Choose the type of loan you want

The next step is to select the type of loan you want and click on Access Loan on the top menu. There are four types of debt, including personal debt: helping individuals achieve their goals faster; Commercial Debt: Aiming To Help Businesses Grow, Mortgage Loans: Helping To Acquire Wealth And Generally Nature’s Long Term Purpose.

3. Provide the required information

You will be asked to provide the required information, such as creating a profile. You must provide accurate information. Required information will include the purpose of the loan, your age, employment status, and how much you need.

4. Get loan options

Once you have completed the required information, you can click ‘Check Availability’. You should be able to see the loan options available based on the information you provide.

5. Apply for a loan

Go through the results. You will see the loan requirements and interest rates for each of them. Once you find one that works for you, you apply. Just click on “View Details and Apply”. Then click “Start”.

Ultimately, we can all agree that one of the hardest parts of being an entrepreneur is finding the next opportunity to make it big in business. As a business owner, your job is to distinguish good opportunities from wise ones so that they can make smart decisions that will move you forward in the long run.

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How To Access NEDEP Loan in 2022

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