The Bank of Industry has revealed that, in the first nine months of 2024, it has successfully disbursed Loans totaling N77.65 billion specifically to support medium, small, and micro-enterprises.
According to the BOI, the financial assistance has reached nearly 1,000 MSMEs across the country, allowing for improved operations, increase productivity, and support of the nation’s overall economic growth.
Dr Olasupo Olusi, Managing Director and Chief Executive Officer, of the BOI, disclosed these figures at the 2024 BOI Annual Public Lecture Series held in Abuja on Wednesday.
The theme of the event: “Creating Impact: The Role of MSME Support and Financing in alleviating poverty and food insecurity in Nigeria.”
Dr. Olusi began by stating that the disbursement is part of the government’s strategy to tackle major challenges, including limited access to finance, a challenging operating environment, and infrastructure shortcomings.
He reiterated that resolving these issues were vital for combating poverty and securing food security in the nation.
He said: “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 per cent of employment and about 50 per cent 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 socio-economic conditions of the poor by creating employment opportunities, promoting the utilization 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 totaling 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, amongst others,” olusi added.
According to Dr. Olusi, the bank will continue to foster an environment that supports sustainable growth by offering access to capacity-building programs, promoting technological innovation, and facilitating connections between businesses and both domestic and international markets.
Dr. Olusi also added: “To deepen our impact, we have prioritized six key thematic areas: MSMEs, Digital Economy, Youth & Skills, Climate and Sustainability, Infrastructure, and Gender. This approach ensures that every loan disbursed helps to create jobs, achieves a greener economy, and boosts overall economic growth and development.
“In addition, the Bank recently launched the Rural Area Programme on Investment for Development to support MSMEs in rural areas with loan facilities at an interest rate of 5 per cent (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 to generate employment, improve their standard of living, tame insecurity arising from youth restiveness and contribute to national economic growth.”
Furthermore, Doris Anite, the Minister of Industry, Trade and Investment stated that the government is committed to integrating MSMEs into its initiatives centered at alleviating food insecurity and boosting the production of essential goods and services, including food.
Anite said: “Micro, Small, and Medium Enterprises are the backbone of many economies around the world, particularly in developing nations like ours.
“They account for over 90 per cent of businesses and contribute significantly to employment, income generation, and economic growth. In many of our communities, MSMEs provide not only jobs but also innovation and the production of essential goods and services, including food.
“MSMEs also play a pivotal role in addressing poverty by creating employment opportunities, especially for our youth and women who are often excluded from formal labor markets. By empowering individuals with jobs and stable incomes, we also strengthen local economies and enable families to rise out of poverty.”
On the other hand, the Minister of Finance and coordinating minister of the economy, Wale Edun, stated that the government is focused on enhancing the bank's equity base.
Mr. Edun, who represented by Armstrong Takang the Managing Director of the Ministry of Finance Incorporated, mentioned that this increase in equity will enable the bank to better mobilize resources and focus more on supporting MSMEs.
“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 mobilize more focus on MSMEs,” he said.
The event also marked the official launch of two important publications namely; The BOI Journal of Development Finance (Technical) and The BOI Journal of Development Review (Non-Technical).
Meanwhile, a price intelligence dashboard and mobile app called “BOI PriceSense NG” was also launched to provide real-time monitoring of food commodity price changes across the country.
