The Bank of Industry (BOI) has reinforced its dedication to enhancing access to affordable financing for Micro, Small, and Medium Enterprises (MSMEs) through a N75 billion intervention fund. This initiative aims to bolster MSME empowerment, leading to the creation of over 75,000 direct jobs and an additional 150,000 indirect jobs across Nigeria. A recent Presidential Loan Clinic held in Abuja brought together government officials, stakeholders, and beneficiaries to discuss the program’s progress and address challenges related to the loan disbursement process. The clinic, organized in partnership with the Office of the Special Adviser to the President on Micro, Small, and Medium Enterprises and Job Creation, underscored the government’s commitment to fostering inclusive economic growth through the development of small businesses.
The BOI revealed that significant strides have been made in disbursing the intervention fund. In the Federal Capital Territory (FCT) alone, 662 businesses have received loan approvals totaling N2.9 billion, with N900 million already disbursed to 262 companies. While acknowledging the successful disbursement to a substantial number of recipients, the BOI also addressed delays experienced by some applicants. These delays, according to the BOI Managing Director/Chief Executive Officer, Olasupo Olusi, are primarily attributed to incomplete documentation and other compliance gaps. The MSME clinics are designed to proactively tackle these challenges and ensure that all qualified Nigerian entrepreneurs can benefit from the fund.
Olusi emphasized that the program aligns with the presidential directive to improve credit accessibility for Nigerian businesses, promoting sustainability and contributing significantly to the nation’s Gross Domestic Product (GDP). Beyond mere fund provision, the BOI is focusing on capacity building, impact monitoring, and ensuring that the loans facilitate tangible job creation and generate economic value. The BOI reiterated the availability of the funds and encouraged more entrepreneurs to take advantage of this opportunity.
Nasiru Ozovehe, the BOI Regional Manager for the North Central region, provided further details about the loan program’s impact. He confirmed the N2.9 billion approved for 662 FCT businesses and the N900 million already disbursed to 262 companies. Ozovehe highlighted that the loan scheme targets MSMEs across all sectors, prioritizing registered businesses that demonstrate growth potential and job creation capacity. He encouraged unregistered businesses to formalize their operations to qualify for the fund, emphasizing that the maximum loan amount is N5 million, accessible only to businesses with valid registration and documentation.
The intervention program, according to Temitola Adekunle-Johnson, Special Adviser to the President on Micro, Small, and Medium Enterprises and Job Creation, is designed not only to improve funding accessibility but also to provide the necessary support for entrepreneurs to effectively utilize the funds. Adekunle-Johnson applauded the BOI’s dedication to ensuring transparent and effective access to funding for Nigerian businesses, emphasizing that the program exemplifies President Bola Tinubu’s Renewed Hope Agenda, which prioritizes job creation, youth empowerment, and economic stability. The BOI is actively working with beneficiaries to ensure proper documentation and utilization of the funds, focusing on creating a sustainable impact on businesses and the economy.
Damilola Afolabi, Managing Director/Chief Executive Officer of The Ladies Empire and a beneficiary of the loan program, shared a compelling testimonial, describing the transformative impact of the facility on her business. The loan enabled her company to purchase more equipment, hire additional staff, and expand operations. Afolabi expressed gratitude for the favorable loan terms, which include a nine percent interest rate, a three-year repayment period, and a three-month moratorium, allowing the business to stabilize before commencing repayments. The BOI emphasized that the initiative is structured not just to disburse loans but to cultivate a robust ecosystem of MSMEs contributing to national economic growth. This focus is crucial given MSMEs’ significant contribution to the Nigerian economy, comprising over 39 million entities, contributing almost 50% to the GDP, and accounting for more than 80% of employment in the country.
