.jpeg)
This financial assistance has reached nearly 1,000 MSMEs nationwide, enabling them to enhance their operations, boost productivity, and contribute to the country's economic growth.
Dr. Olasupo Olusi, the Managing Director and Chief Executive Officer of BOI, shared these figures at the 2024 BOI Annual Public Lecture Series held on Wednesday in Abuja. The theme of the event was ‘Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria.’
Additionally, Olusi announced that 140 local manufacturers will be granted loans of up to N1 billion through the Federal Government’s N75 billion Manufacturing Sector Fund.
These funds, which will be distributed by the bank at single-digit interest rates, are part of the government's initiative to support large-scale production enterprises and enhance economic growth through increased industrial capacity.
He noted that the funds have been fully allocated to successful applicants across Nigeria’s six geopolitical zones, with disbursements currently in progress, although he did not disclose the specific amounts allocated to each manufacturer.
Regarding the loans to MSMEs, he highlighted that this initiative is part of the government's strategy to tackle significant challenges such as limited access to finance, a challenging operating environment, and infrastructure shortcomings.
Olusi emphasized the importance of addressing these issues to alleviate poverty and ensure food security in the nation.
He stated, “MSMEs are the foundation of any successful economy. In Nigeria, they constitute approximately 97 percent of all businesses, contributing over 80 percent of employment and about 50 percent of GDP, serving as the driving force behind food production and overall economic development in the country.”
Businesses in this sector frequently encounter considerable obstacles, such as restricted access to financing, difficult operating conditions, and inadequate infrastructure. Consequently, it is crucial to tackle these challenges to reduce poverty and enhance food security.
With adequate financial backing and a supportive environment, micro, small, and medium enterprises (MSMEs) can significantly improve the socioeconomic status of disadvantaged populations by generating job opportunities, encouraging the use of local resources, and fostering economic development.
This year, the bank has provided substantial support to MSMEs nationwide, disbursing loans amounting to approximately N77.65 billion. Nearly 1,000 MSMEs have received these funds to strengthen their operations. Beneficiaries include a local palm kernel oil producer in the east, a woman operating a printing press in the north, and a furniture maker in the south, among others.
The bank is committed to fostering an environment conducive to sustainable growth by offering access to capacity-building initiatives, promoting technological advancements, and facilitating connections between businesses and both local and global markets.
Olusi emphasized that to enhance their impact, the bank has identified six priority areas: MSMEs, the digital economy, youth and skills development, climate and sustainability, infrastructure, and gender equality. This strategy ensures that each loan issued contributes to job creation, supports a greener economy, and stimulates overall economic progress.
Additionally, the bank has recently introduced the Rural Area Programme on Investment for Development, aimed at assisting MSMEs in rural regions with loan options at a competitive interest rate of 5 percent (inclusive of all costs), a repayment period of up to three years, and a six-month grace period.
The initiative is designed to ensure that small enterprises in rural regions have access to financial support, enabling them to create jobs, enhance living standards, mitigate insecurity stemming from youth unrest, and contribute to the overall economic development of the nation.
During her speech at the event, Minister of Industry, Trade, and Investment, Doris Anite, emphasized the government's commitment to integrating micro, small, and medium enterprises (MSMEs) into its strategies aimed at alleviating food insecurity and boosting the production of vital goods and services, particularly food.
She remarked, “Micro, small, and medium enterprises form the foundation of numerous economies globally, especially in developing countries like ours. They represent over 90 percent of businesses and play a crucial role in job creation, income generation, and economic advancement. In many communities, MSMEs not only provide employment but also foster innovation and produce essential goods and services, including food.”
“Furthermore, MSMEs are instrumental in combating poverty by generating job opportunities, particularly for youth and women who are frequently marginalized in formal labor markets. By equipping individuals with stable jobs and incomes, we also bolster local economies and help families escape poverty.”
In addition, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the government is focused on enhancing the equity base of the Bank of Industry (BOI).
“The Ministry of Finance is dedicated to collaborating with the BOI to expand the bank's equity base. An increased equity base will enable the bank to concentrate more resources on supporting MSMEs,” he noted.