By Tony Obiechina, Abuja
The Bank of Industry has announced that within the first nine months of 2024, it disbursed N77.65 billion in loans to support medium, small, and micro-enterprises.
It said the financial assistance has been provided to nearly 1,000 MSMEs across the country, enabling them to enhance their operations, improve their productivity, and contribute to the overall economic growth of the country.
The BOI Managing Director and Chief Executive Officer, Dr Olasupo Olusi, disclosed the figures at the 2024 BOI Annual Public Lecture Series held on Wednesday in Abuja.
The event was themed, ‘Creating Impact: The Role of MSME Support and Financing in alleviating poverty and food insecurity in Nigeria’.
Olusi also said 140 local manufacturers will receive loans of up to N1bn under the Federal Government’s N75bn Manufacturing Sector Fund.
The funds which will be disbursed through the bank and provided at single-digit interest rates, are part of the government’s efforts to support large production enterprises and bolster economic growth through increased industrial capacity.
Olusi said the funds have already been fully allocated to successful applicants across Nigeria’s six geopolitical zones, with disbursements underway, but did not reveal the exact amount allocated to each manufacturer.
On the disbursements to MSMEs, he said it was part of the government’s strategy to address significant challenges such as limited access to finance, difficult operating environment, and infrastructure deficiencies.
He also emphasised that tackling these issues is crucial for alleviating poverty and ensuring food security in the country.
He said, “As we know, MSMEs are the bedrock of any thriving economy. In Nigeria, they make up approximately 97 per cent of all businesses contributing to over 80 per cent of employment and about 50 per cent of GDP – and are the driving force of food production and the overall economic development in Nigeria.
“However, these businesses often face significant challenges, which include limited access to finance, challenging operating environments, and infrastructure deficiencies. Therefore, addressing these issues is essential to alleviating poverty and ensuring food security.
“Through sufficient financial support and an enabling environment, MSMEs are better equipped to improve the socioeconomic conditions of the poor by creating employment opportunities, promoting the utilisation of local raw materials, and driving economic growth.
“So far this year, the bank has supported MSME across the country through the disbursement of loans totalling about N77.65bn. 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, among others.”
According to him, the bank will continue to create an environment that promotes sustainable growth by providing access to capacity-building programs, encouraging technological innovation, and facilitating connections between businesses and both domestic and international markets.
Olusi added, “To deepen our impact, we have prioritized six key thematic areas: MSMEs, digital economy, youth and skills, climate and sustainability, infrastructure, and gender. This approach ensures that every loan disbursed helps to create jobs, achieves a greener economy, and boosts overall economic growth and development.
“In addition, the bank recently launched the Rural Area Programme on Investment for Development to support MSMEs in rural areas with loan facilities at an interest rate of 5 per cent (all-inclusive), a tenor of up to three years as well as moratorium period of six months.
“The programme aims to ensure that small businesses in rural areas can access financial resources to enable them to generate employment, improve their standard of living, tame insecurity arising from youth restiveness, and contribute to national economic growth.”
The Minister of Industry, Trade, and Investment, Doris Anite, in her address at the event, said the government is focused on incorporating MSMEs into its initiatives aimed at reducing food insecurity and enhancing the production of essential goods and services, including food.
She said, “Micro, small, and medium enterprises are the backbone of many economies around the world, particularly in developing nations like ours. They account for over 90 per cent of businesses and contribute significantly to employment, income generation, and economic growth. In many of our communities, MSMEs provide not only jobs but also innovation and the production of essential goods and services, including food.
“MSMEs also play a pivotal role in addressing poverty by creating employment opportunities, especially for our youth and women who are often excluded from formal labour markets. By empowering individuals with jobs and stable incomes, we also strengthen local economies and enable families to rise out of poverty.”
On his part, The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the government is working to increase the equity base of BOI.
READ ALSO:
- Port-Harcourt Refinery Fully Operational, Says NNPC Ltd
- CHAN 2024Q: Ghana Not Focused On Rivalry With Nigeria — Dramani
- PSG Rekindle Interest In Osimhen Ahead Winter Transfer Window
- Intimate Affairs: Young men, older women, by Funke Egbemode
- IPI Nigeria mourns treasurer Rafatu Salami
