Business: 140 manufacturers to get BOI’s loan at single digit

By Oluwakemi Kindness

The Bank of Industry, BOI says about one hundred and forty large manufacturing companies will receive loans of up to one billion naira at single digit interest rates.
BOI’s Managing Director, Dr. Olasupo Olusi, stated this in Abuja on Wednesday during its inaugural public lecture series saying this is under the seventy five billion naira Manufacturing Sector Fund.
Dr. Olusi said the funds under this program have been fully allocated to successful applicants across the six geopolitical zones of the country, and disbursements have also commenced.
He said “while we are enabling Nano, Micro, Small and Medium size enterprises, which are critical to the growth of the economy in terms of their impact on economic growth and job creation, our efforts to support large production enterprises is also progressing under the N75 billion FGN Manufacturing Sector Fund”.
“For transparency of the process under this scheme, we are working with the Manufacturers Association of Nigeria (MAN) to ensure that all beneficiaries are real manufacturers. This is to provide additional validation of the loan applicants for the program”.
Speaking on the activities of the bank, Dr. Olusi said so far this year, the Bank has supported MSME across the country through the disbursement of loans totalling about N77.65 Billion.
These loans according to him, were given to almost 1,000 MSMEs across the country to enable them 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”.
“By empowering MSMEs with the tools and resources they need to thrive, we are fostering a culture of innovation and entrepreneurship, driving job creation, poverty reduction, and inclusive economic growth”.
According to him in addition, the Bank recently launched the Rural Area Programme on Investment for Development (RAPID) to support MSMEs in rural areas with loan facilities at an interest rate of 5% (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 generate employment, improve their standard of living, tame insecurity arising from youth restiveness and contribute to national economic growth.
The Federal Government has recently announced plans to expand the programme by developing 300 new MSMEs for each state including the Federal Capital Territory, resulting in 11,100 new rural-based MSMEs across the nation.
On the theme of the lecture series, “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria,” Dr. Olusi noted that it strongly aligns with the core vision and mission of the Bank of Industry knowing that MSMEs are the bedrock of any thriving economy.

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