Business a.m.
The Bank of Industry (BoI) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have launched a joint effort, creating a N1 billion support fund to provide affordable financing to Nano and Micro enterprises across Nigeria.
Olasupo Olusi, managing director and chief executive officer of the Bank of Industry, unveiled the new support fund in Abuja during the organisation’s annual public lecture series.
Themed “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria”, the event assembled a panel of industry experts to examine the role that Nigeria’s Micro, Small, and Medium Enterprises (MSMEs) can play in strengthening the nation’s economic resilience, while exploring strategies to mitigate the effects of poverty and food insecurity.
Olusi highlighted the significance of this new initiative, stating that the collaboration between the Bank of Industry and SMEDAN would serve as a powerful catalyst for economic growth, equipping Nigeria’s MSMEs with greater financial resources and flexibility.
According to the BoI MD, with 97 percent of the country’s businesses falling under the MSME category, and with these businesses playing a vital role in job creation and economic growth, the N1 billion fund is poised to enhance the operational capacity of these enterprises, providing nano and Micro businesses with loan amounts that have been individually tailored to their specific needs and circumstances.
Olusi underlined the major role played by MSMEs in fueling Nigeria’s economic development, stressing that despite their vital contributions, these businesses are beset with numerous challenges, particularly in the realm of affordable financing options. He also emphasised the necessity for a comprehensive strategy that would provide MSMEs with greater access to the financing they need to realize their full potential as the lifeblood of the Nigerian economy.
To further support Nigeria’s MSMEs, the new initiative offers nano businesses access to loans of up to N1.5 million and micro businesses loans of up to N2.5 million. These loans, Business a.m. learnt,will be provided at highly competitive interest rates with a single digit of 7.5 percent for working capital loans and five percent for term loans, while offering the flexibility of a 24-month repayment tenor.
Olusi underscored that the financial package represents more than just access to capital, revealing that the collaboration between BoI and SMEDAN is designed to offer beneficiaries technical support, capacity-building programmes, and valuable advisory services.
Olusi further noted that this new initiative is aligned with President Tinubu’s Renewed Hope Agenda, a vision for economic diversification and industrialization that hinges on robust support for MSMEs.
Moreover, the collaborative effort between BoI and SMEDAN is underpinned by BoI’s strategic focus on six pivotal themes: MSMEs, the digital economy, youth and skills development, climate and sustainability, infrastructure, and gender.
Olusi elaborated on the bank’s support for larger enterprises, dwelling on BoI’s N75 billion Manufacturing Sector Fund that is offering loans of up to N1 billion to over 140 manufacturing companies throughout Nigeria.
At the event, BoI took a further step in its knowledge-sharing endeavours by launching two open-access publications, including The BOI Journal of Development Finance and The BOI Journal of Development Review.
The journals, according to BoI, were developed with the objective of providing insights and analysis into the realms of MSME policy, development finance, and industrial growth in Nigeria, serving as indispensable resources for policymakers, researchers, and industry practitioners seeking to advance their understanding of these fields and drive economic progress in Nigeria.
Adding to the launch of the open-access journals, BoI revealed yet another innovation at the event: BOI PriceSense NG, a real-time food commodity price monitoring platform that offers a comprehensive view of price fluctuations and trends across Nigeria.
The tool, with its focus on transparency and data-driven decision-making, is poised to play a critical role in informing policy decisions, promoting market transparency, and contributing to the fight against food insecurity in the country by offering an informed perspective on the dynamics of the food market.
Speaking at the inaugural lecture series, Doris Uzoka-Anite, the minister of industry, trade, and investment, commended BoI’s initiatives to support and strengthen MSMEs, particularly in light of the intensifying global food security concerns.
The minister highlighted the critical role played by MSMEs in Nigeria’s economy, underlining the fact that these enterprises make up over 90 percent of the country’s businesses and play an indispensable role in driving job creation, fostering innovation, and fueling local economic growth.
Uzoka-Anite commended BoI’s proactive stance in tackling the global food security crisis, which has been amplified by armed conflicts, climate change, and the lingering effects of the pandemic.
In particular, the minister lauded the bank’s launch of proactive initiatives like the BoI Price Intelligence Platform, which, she asserted, demonstrated BoI’s commitment to addressing the crisis and aiding Nigeria’s response to the global food security challenges.
Drawing attention to the ongoing challenges faced by many Nigerian MSMEs, the minister urged stakeholders across all sectors to redouble their efforts in providing more targeted support to these businesses.
She also highlighted the need for enhanced collaboration between development finance institutions, larger corporations, and international partners, all with the aim of ensuring that Nigerian MSMEs receive the financial inclusion and technical assistance they need to thrive.
In addition to her call for increased support and collaboration, Uzoka-Anite outlined the ministry’s partnership with BoI and other critical agencies, including SMEDAN and the Industrial Training Fund (ITF), to drive initiatives that empower MSMEs, particularly in the agriculture sector. Key among these initiatives are the Presidential Loans and Grant Scheme, designed to offer affordable financing solutions to MSMEs, and the Agri-Business Development and Empowerment Programme (ADEP), which seeks to promote the growth of agribusiness as a promising career path for the nation’s youth and women.
Through these initiatives and others, the ministry, in partnership with BoI and other agencies, aims to boost the development of MSMEs.
