The Bank of Industry (BOI) has reported a significant disbursement of N77.65 billion in loans within the first nine months of 2024, aimed at bolstering medium, small, and micro-enterprises (MSMEs) across Nigeria. This financial assistance has reached nearly 1,000 MSMEs, enabling them to enhance operational efficiencies, improve productivity, and positively impact the nation’s economic growth. Dr. Olasupo Olusi, the Managing Director and CEO of BOI, made this announcement during the annual public lecture series in Abuja, titled “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria.” The lecture underscored the importance of MSMEs in addressing systemic challenges within the economy, including food insecurity and poverty.
Dr. Olusi shared insights into the government’s initiatives to sanction loans for 140 local manufacturers under the N75 billion Manufacturing Sector Fund, aimed at supporting large-scale production efforts. He highlighted that these loans, with a ceiling of N1 billion for each manufacturer, are provided at attractive single-digit interest rates. The initiative is designed to boost the industrial capacity of the country, with fund allocations already completed for successful applicants across Nigeria’s six geopolitical zones. Although specific allocation amounts for individual manufacturers were not disclosed, the initiative is indicative of the government’s dedication to enhancing manufacturing capabilities domestically.
The BOI CEO emphasized that addressing critical issues such as limited access to finance, a challenging operating environment, and infrastructure deficiencies is essential for improving economic conditions. He noted the substantial role that MSMEs play in Nigeria’s economy, comprising around 97% of businesses and generating over 80% of employment and 50% of GDP. By empowering MSMEs with financial resources and improving their operational environments, the aim is to alleviate poverty levels while ensuring food security, as well as fostering a robust economic framework.
Dr. Olusi outlined the bank’s commitment to fostering sustainable growth through various support mechanisms that encompass capacity-building programs, the promotion of technological innovation, and facilitating market connections at both domestic and international levels. He stated that the bank has prioritized six key thematic areas: MSMEs, the digital economy, youth and skills development, climate and sustainability, infrastructure, and gender equality. This multifaceted approach aims to ensure that each loan disbursed has a measurable impact on job creation, environmental sustainability, and enhanced economic development.
To further its mission, the BOI has initiated the Rural Area Programme on Investment for Development, targeting rural MSMEs with access to affordable loans at a 5% interest rate over a three-year term, including a six-month moratorium. This program is designed to empower small businesses operating in rural areas, enabling them to create job opportunities, uplift living standards, and mitigate youth unrest while contributing to national economic growth.
During the lecture, the Minister of Industry, Trade, and Investment, Doris Anite, emphasized the significant role that MSMEs play in reducing food insecurity and in the overall economic landscape of Nigeria. She pointed out that MSMEs constitute the backbone of numerous economies worldwide, generating substantial employment and contributing to innovation and essential goods production. Additionally, she acknowledged that empowering MSMEs has the potential to alleviate poverty, particularly among youth and women who face barriers to entering the formal job market. Lastly, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, expressed the government’s commitment to increasing the equity base of the BOI, emphasizing that a stronger equity base would enhance the bank’s capacity to focus on advancing MSMEs further.
