BOI disburses N77.65bn to empower nearly 1,000 MSMEs
By Esther Agbo
In order to alleviate poverty, the Bank of Industry (BOI) has disbursed N77.65 billion in loans to nearly 1,000 medium, small, and micro-enterprises (MSMEs) within the first nine months of 2024.
This initiative forms part of a larger effort by the BOI to address critical challenges facing the MSME sector, which is regarded as the backbone of Nigeria’s economy.
BOI’s Managing Director and CEO, Dr. Olasupo Olusi, shared these updates during the 2024 BOI Annual Public Lecture Series in Abuja, where discussions centred on the pivotal role MSMEs play in poverty alleviation and tackling food insecurity in Nigeria.
The event, themed ‘Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria,’ highlighted the significance of financial support to the sector.
Dr. Olusi emphasised that the funding has enabled businesses across Nigeria to improve operations, increase productivity, and contribute more effectively to national growth.
Olusi noted that limited access to finance, an unfavourable operating environment, and inadequate infrastructure are key obstacles for MSMEs.
The BOI’s approach to tackling these issues involves providing affordable loans, with interest rates at single digits, and offering capacity-building programs.
These measures, Olusi pointed out, are crucial for improving food security, reducing poverty, and creating job opportunities, especially in rural areas.
“As we know, MSMEs are the bedrock of any thriving economy. In Nigeria, they make up approximately 97 per cent of all businesses contributing to over 80 percent of employment and about 50 percent of GDP, and are the driving force of food production and the overall economic development in Nigeria.
“However, these businesses often face significant challenges, which include limited access to finance, challenging operating environments, and infrastructure deficiencies. Therefore, addressing these issues is essential to alleviating poverty and ensuring food security.
“Through sufficient financial support and an enabling environment, MSMEs are better equipped to improve the socioeconomic conditions of the poor by creating employment opportunities, promoting the utilisation of local raw materials, and driving economic growth.
“So far this year, the bank has supported MSME across the country through the disbursement of loans totalling about N77.65bn.
“These loans were given to almost 1,000 MSMEs across the country to enable them to 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, among others,” he said.
Also, under the Federal Government’s N75 billion Manufacturing Sector Fund, the BOI is providing up to N1 billion in loans to 140 local manufacturers across the country.
The initiative aims to boost production and support large enterprises, contributing to Nigeria’s long-term industrial and economic development.
Government officials at the event, including the Minister of Industry, Trade, and Investment, Doris Anite, and the Minister of Finance, Wale Edun, reiterated the government’s commitment to MSME development, focusing on incorporating MSMEs into its initiatives aimed at reducing food insecurity and enhancing the production of essential goods and services, including food while Edun further stated that the Ministry of Finance is committing to work with the BOI to increase the equity base of the bank. An increase in equity base means the bank would be able to mobilise more focus on MSMEs.
