The Bank of Industry has announced that, within the first nine months of 2024, it has successfully disbursed loans totalling N77.65bn specifically aimed at supporting medium, small, and micro-enterprises.
It said the financial assistance has been provided to nearly 1,000 MSMEs across the nation, 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 these 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 the country.
In his welcome address, Olusi stated that the disbursement is 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 socio-economic conditions of the poor by creating employment opportunities, promoting the utilization 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, amongst 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 & 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, stated that 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.
Anite stated, “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 the coordinating minister of the economy, Wale Edun, stated that the government is working to increase the equity base of the bank.
Edun, represented by the Managing Director of the Ministry of Finance Incorporated, Armstrong Takang, stated that this increase in equity will enable the bank to better mobilize resources and focus more on supporting MSMEs.
“The Ministry of Finance is committing to work with the BOI to increase the equity base of the bank. An increase in equity base means the bank would be able to mobilise more focus on MSMEs,” he stated.
The event also witnessed the the official launch of two landmark publications; The BOI Journal of Development Finance (Technical) and The BOI Journal of Development Review (Non-Technical).
Additionally, a price intelligence dashboard and mobile app called “BOI PriceSense NG” was launched for real-time monitoring of food commodity price variations across the country.
