The Federal Government of Nigeria has announced an increase in the loan limit available to small businesses from N1 million to N5 million, aiming to foster inclusive economic growth in the country. This enhancement was made public by Dr. Olasupo Olusi, the Managing Director of the Bank of Industry (BoI), during a town hall event in Lagos aimed at disseminating information about the Federal Government’s Grant and Loan Scheme. This initiative was a collaborative effort involving the Federal Ministry of Finance, the Federal Ministry of Industry, Trade and Investments, the Presidency, and various stakeholders, signaling a unified approach to empowering micro, small, and medium enterprises (MSMEs) across Nigeria.
Olusi, who was represented by Umar Shekarau, Executive Director of MSMEs at BoI, acknowledged President Bola Tinubu’s provision of N200 billion through the Presidential Intervention Fund designed specifically for assisting MSMEs. Out of this fund, N75 billion has been allocated for a conditional grant and loan scheme focused on MSMEs. This strategic initiative is expected to generate a significant number of jobs, both directly and indirectly, and is indicative of the government’s commitment to addressing the challenges faced by small businesses in Nigeria.
During the event, Olusi emphasized that the loan, which carries an interest rate of just nine percent, is readily available for disbursement to eligible beneficiaries through the Bank of Industry. He encouraged prospective borrowers to engage directly with the bank or apply online, thereby avoiding intermediaries who could complicate the process. Olusi also highlighted the successful impact of previous programs, noting that over 800,000 Nigerians had benefitted from similar funds tailored towards supporting youths, women, and individuals with disabilities, reinforcing the inclusiveness of this initiative.
Furthermore, Temitola Adekunle-Johnson, the Senior Special Assistant to the President on Job Creation and MSMEs, reiterated the increase in the loan cap to N5 million, which seeks to cushion the financial struggles of small businesses, including issues such as access to finance and infrastructure. He noted that the loans would be structured over a three-year tenure and that this scheme is instrumental in addressing the urgent needs of the MSME sector in Nigeria, indicating a robust government response to economic challenges.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighted the government’s ongoing efforts to empower MSMEs and the manufacturing sector, acknowledging their critical role in Nigeria’s economic stability. He framed the town hall meeting as an essential step towards achieving a common vision for economic prosperity, where all Nigerians could access necessary resources for success. He emphasized the pivotal nature of MSMEs in the economy and appreciated the dedication of those who contribute to Nigeria’s development through their entrepreneurial endeavors.
Lastly, stakeholders, including the Minister of State for Industry, Trade and Investment, Sen. John Eno, expressed the government’s commitment to supporting initiatives that enhance the welfare of Nigerians and urged collaborative efforts to break down barriers that hinder MSME growth. This meeting also served to spotlight the stories of various beneficiaries, such as a vegetable farmer, a nanny, and a food vendor, showcasing the diverse potential of small businesses in Nigeria and their importance in driving inclusive economic growth. The overarching message of the event was a clarion call for unity in supporting small businesses, acknowledging their vital role as the backbone of the Nigerian economy.
