A Business Analyst, Mr Nerus Ekezie, has appealed to the Federal Government to review the one billion dollar loan to support the Micro Small and Medium Enterprises (MSMEs) which is to be accessed through the Bank of Industry (BOI).
Ekezie, who is a former Director of National Association of Small and Medium Enterprises (NASME), made the call in an interview in Lagos on Tuesday.
According to him, earmarking the funds to support the MSMEs’ sector, via the BOI, might not achieve its objectives because of its stringent conditions.
“Many budding entrepreneurs cannot meet the criteria set by the BOI to access the loans.
“The bank will start to demand for a collateral, guarantor and a processing fee, thereby negating the process,” he said.
According to him, the Federal Government should have more interface with the various associations in the SMEs’ sector so as to empower the right businesses.
“The government could liaise with the Lagos Chamber of Commerce and Industry (LCCI), Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture ( NACCIMA ) or Nigerian Association of Small and Medium Enterprises (NASME) to guide them on how they could allocate the funds.
“ These bodies within the business communities are stakeholders and are better informed on how such ideas could be more successful,” he said
He noted that the BOI, which is a developmental bank, has been over capitalised, and allocating these funds would be unnecessary at there were other channels to support the MSME’s sector.
Our Correspondent reports the Federal Government said that the Bank of Industry (BoI), under the supervision of the Federal Ministry of Industry, Trade and Investment, had secured a one billion dollar syndicated loan to support Micro, Small and Medium Enterprises (MSMEs) in the country.
The Minister for Industry, Trade and Investment, Otunba Adeniyi Adebayo, made the disclosure at the Quantum Mechanics Limited MSMEs Survival Fund capacity building programme in Abuja.
The loan is expected to improve the capacity of the bank to effectively support MSMEs across key sectors of the Nigerian economy.