In 2021, my company, HTS Business School, was accredited by the Central Bank of Nigeria (CBN) as one of the official Entrepreneurship Development Institutes (EDIs) to facilitate training for young Nigerians seeking to access the AGSMEIS loan.

Through NIRSAL Microfinance Bank, the CBN had mapped out hundreds of billions of naira for MSMES  and agribusinesses.

They were ready to give up to ₦10 million to businesses without asking for collateral.

The interest rate was just 5% per annum.

It came with a 7-year tenor and an 18-month moratorium.

Honestly, it was almost like free money. And if you are not careful, this is the kind of money that everybody will claim they need—which was exactly what happened.

To ensure that the loan was not abused and that it was truly channeled into growing MSMEs, the government of President Buhari, through the CBN, designed what I consider a very brilliant policy framework.

Policy 1: You must go through an EDI

CBN recognized that people don’t just need money to succeed in business—they also need knowledge.

So they insisted that before anyone could even apply for the loan, they must attend training with any of the certified EDIs across the country. Only after completing the training would the applicant be issued a certificate to apply for the loan.

Policy 2: Nobody will give you ₦10 million in cash

They onboarded businesses selling different types of equipment as accredited vendors to work with.

To me, this was a powerful two-factor authentication system—especially for a country where people love to bypass processes.

For example, if CBN approved ₦10 million for you and you said you wanted to start a tailoring business, they would ask you to list what you needed.

For simplicity, let’s say you needed:

100 sewing machines for ₦9m

Shop rent of ₦700k

₦300k for daily operations

CBN would simply ask you to go to any of their accredited vendors selling sewing machines and collect a proforma invoice. They would then transfer ₦9m directly to the vendor and ask you to go and collect your machines.

They would also transfer ₦700k directly to your landlord.

The only money that would enter your personal account would be the ₦300k for operations.

For me, this policy was absolutely brilliant. With this structure, it was almost impossible to misuse the funds.

But the truth is this:
Nigeria has never really had a policy problem.

From the First Republic till today, there have been many noble policies.

OBJ had wonderful policies.
Jonathan policies were capable of changing Nigeria. 
Buhari had policies that could turn things around.
Even Tinubu are churning out great policies too.

However, the real challenge has always been with implementation.

Now, do you know what people did to circumvent the entire process?

First: The EDI problem

Many people who enrolled in EDIs openly said they either didn’t have time for the training or didn’t need it.

They just wanted the certificate to apply for the loan.

So they would ask you to issue the certificate and take their money.

For them, it was, “Who knowledge epp? Just give us the money.”

People like us tried our best to insist that applicants must attend the training before we issued certificates—but I must tell you, it was a serious fight.

Second: The big theft

As usual in Nigeria, politicians collaborated with top officials in CBN and NIRSAL to steal more than 90% of the funds meant for the programme.

You probably remember when a former NIRSAL boss was accused of stealing ₦80 billion alone.

Even if they had given just ₦1 million to each applicant, that amount could have empowered 80,000 entrepreneurs.

Third: Lobbying and kickbacks

When people realized that attending training and applying no longer guaranteed access to the loan—maybe 1 out of every 500 applicants got approved—what did Nigerians do?

They started lobbying EDIs.

“Please push my application. I will give you 20% of whatever is approved.”

I heard that in some EDIs, it was actually the EDI officials who insisted that for them to “push” your application, you must agree to share the money 50/50 when it is approved.

Fourth: Vendor manipulation

Now, for the few people whose loans were eventually approved, what happened next?

They went to the equipment vendors and had this conversation.

Entrepreneur:
“Oga, I don’t need any sewing machine. In fact, I don’t even know how to sew. Please, once the money enters your account, just transfer it to me. Here are my account details.”

Vendor:
“That one no fit work oh. Na market I dey sell, and CBN na the buyer. I must sell my market.”

Entrepreneur:
“Oga, calm down na. I no need the machine. Just give me the money.”

Vendor:
“This one no be begging matter. Do you know how much I paid before I was chosen as a vendor, then I will just give you the money like that?”

Entrepreneur:
“Oh… now I understand. Why you no quick talk since na? Okay, I will give you ₦50k.”

Vendor:
“You no serious. Am I begging you for money? You want take over ₦9 million and give me ₦50k because I be your boy?”

Entrepreneur:
“So, oga, wetin you want?”

Vendor:
“I go send you ₦5 million and keep ₦4 million.”

Entrepreneur:
“Which kind greed be this? You be criminal? I should give you four million for doing what exactly?”

Vendor:
“No wahala. When you insult me finish you will go, and I go return the money to CBN and tell them you don’t need it.”

At this point, the entrepreneur would calm down accepting that there is really nothing he could do.

Entrepreneur:
“Oga, abeg help me.”

Vendor:
“Okay. I go send you ₦6 million and keep ₦3 million.”

Entrepreneur:
“No wahala. God bless you.”

Money is transferred. Everyone is happy.

The next day, the “entrepreneur” uses ₦500k to start a POS business and uses the remaining ₦5.5m to start a building project in his village.

Now, I have a question:

How does Nigeria want to get better like this?

Who really is the problem of this country?

The politicians—or the people?

And most importantly,

What is the way out?

This is not fiction. It is happening in Nigeria every day, and I was an insider to this particular matter.