The Managing Director of the Bank of Industry (BOI), Olasupo Olusi, announced on Wednesday, October 2, that 14 manufacturing companies will receive loans of up to N1 billion at a single-digit interest rate.
Olusi explained that the bank is also supporting large-scale production enterprises through the N75 billion Federal Government of Nigeria (FGN) manufacturing sector fund.
He said the initiative aims to empower Nano, Micro, Small, and Medium Enterprises (MSMEs), which play a vital role in driving economic growth and job creation.
The funds under this program have already been fully allocated to successful applicants across the six geopolitical zones of the country, and disbursements have begun.
To ensure transparency in the process, BOI is working with the Manufacturers Association of Nigeria (MAN) to verify that all beneficiaries are genuine manufacturers. This additional validation is designed to strengthen the loan application process.
Olusi made the remarks during the Bank of Industry’s Inaugural Public Lecture Series in Abuja, themed “Creating Impact: The Role of MSMEs Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria.”
He also noted that the BOI has recently entered into a partnership with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to provide a N1 billion fund at a single-digit interest rate to support Nano and Micro Enterprises in the country.
He said: “Under the partnership, Nano and Micro enterprises will access a maximum of N1.5 million and N2.5 million, respectively, at a single-digit interest of 7.5% for working capital and 5% for term loan, with a tenor of 24 months. The Bank was also appointed as the executing agency for the federal government’s ₦200 billion Presidential Intervention Fund for Enterprises.
“The Presidential Grants programme aimed to disburse N50,000 grants to 1 million Nano business owners, ensuring equitable distribution of these grants across the 774 local governments of the country. Under this programme, the sum of N37.9 billion has been disbursed to 758,197 beneficiaries across 774 local governments in the country. We are working with State Governors through their state focal persons to complete our 1 million target.
“So far in 2024 alone, the Bank has supported MSME across the country through the disbursement of loans totalling about N77.65 Billion. These loans were given to almost 1,000 MSMEs across the country to enable them to boost their operations. Those who have benefitted through several of our financing facilities range from the local palm kernel oil processor in the east to the woman with a printing press in the north, and a local furniture maker in the south, amongst others.
“However, our efforts to support MSMEs extend is far beyond financial assistance. We will continually work to create an environment that fosters sustainable growth through access to capacity-building programs, promoting technological innovation, and connecting businesses to domestic and international markets. This will be done by empowering MSMEs with the tools and resources they need to thrive, we are fostering a culture of innovation and entrepreneurship, driving job creation, poverty reduction, and inclusive economic growth”.
Olasupo noted that it is important for the BOI to address these gaps as the bank has prioritised six key thematic areas, MSMEs, Digital Economy, Youth & Skills, Climate and Sustainability, Infrastructure, and Gender.
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This approach ensures that every loan disbursed helps to create jobs, achieves a greener economy, and boosts overall economic growth and development.
Speaking, the minister, Industry Trade and Investment Doris Uzoka Anite said President Bola Ahmed Tinubu’s administration has put up supportive policies that create an enabling environment for MSMEs.
“We re-launched the Presidential Enabling Business Environment Council (PEBEC) to demonstrate our commitment to supporting and growing industries and businesses in the country”.
Under this council the government is striving to ensure that doing business in Nigeria is easier than ever; the government is focused on improving infrastructural capacity as well as soft infrastructure such as policies and frameworks to ensure accountability and to create a culture of efficient collaboration and synergy among various government agencies.
