Sunday, 21 May 2017

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25,000 MSMEs Get N1trillion From BoI

25,000 MSMEs Get N1trillion From BoI
A total of 25,000 Micro, Small and Medium Enterprises received the sum of N1tn from the Bank of Industry to boost their operations in the last 15 years, figures obtained from the bank have revealed.

The amount was disbursed to the companies operating in key sectors of the economy such as agriculture, solid mineral processing, petro chemical and polymer industry, cotton and textile industry.
Others are automobiles, creative industries, as well as Information Communications Technology.
The Acting Managing Director, Bank of Industry, Mr. Waheed Olagunju, confirmed the development during an interview with our correspondent in Abuja.
The BoI boss said the funds which were given as loans at single-digit interest rates with a long repayment period had impacted significantly on the Nigerian economy with over five million direct and indirect jobs created.
He said, “It is gratifying to note that in the last one and a half decades, the BoI has continued to make giant strides in pursuit of its developmental mandate. The bank has invested over one trillion naira in more than 25,000 small, medium and large enterprises.
“Having approved loans in excess of over N1tn over the last decade and a half in its quest to transform the industrial sector in Nigeria, the Bank of Industry is indeed well positioned to keep intervening in key sector of the Nigerian economy, especially as the drive for sustainable national economic diversification gains significant momentum.”
He said in a bid to enhance its capacity in supporting the real sector of the economy, the bank had strengthened its strategic partnership by engaging public and private sector institutions for collaborative financing opportunities.
He also said the bank had increased its matching fund partnership with state governments from 17 states to 21 states, with Abia (N1bn), Katsina (N2bn), Sokoto (N2bn) and Benue (N2bn) being the new states that had joined the scheme.
He added that the N5bn bottom of the pyramid initiative, a platform created by the bank to provide financing opportunities to micro enterprises, had gained momentum with the approval of N3.57bn to 16 microfinance banks.
Olagunju said over 12,000 enterprises had benefitted from the scheme with about 50,000 jobs created.
When asked to respond to claims by some entrepreneurs that it was difficult accessing the bank’s loans, he said, “We have laws and we are stringent in complying with those laws. There are rules and requirements to be met by those who require credit and they are displayed transparently.
“So, we apply those rules across the board without fear or favour. We lend to everyone that meets our criteria but we obey the rules that we set for ourselves.”

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