The Bank of Industry (BOI) has announced the disbursement of N77.65 billion in loans to support medium, small, and micro-enterprises (MSMEs) within the first nine months of 2024. This financial assistance has benefited nearly 1,000 MSMEs across Nigeria, enabling them to enhance operations, boost productivity, and contribute to the nation’s economic growth.
Dr. Olasupo Olusi, Managing Director and CEO of BOI, disclosed the figures during the 2024 BOI Annual Public Lecture Series held on Wednesday in Abuja. The event was themed “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria.”
Olusi also revealed that 140 local manufacturers will receive loans of up to N1 billion under the Federal Government’s N75 billion Manufacturing Sector Fund. These loans, offered at single-digit interest rates, aim to support large-scale production enterprises and enhance economic growth through increased industrial capacity.
He stated that the funds have been fully allocated to successful applicants across Nigeria’s six geopolitical zones, with disbursements already underway. However, he did not disclose the specific amounts allocated to each manufacturer.
Regarding the loans to MSMEs, Olusi highlighted the government’s strategy to address challenges such as limited access to finance, a difficult operating environment, and infrastructure deficiencies. He emphasized the importance of tackling these issues to alleviate poverty and ensure food security in Nigeria.
“MSMEs are the bedrock of any thriving economy, comprising approximately 97 percent of all businesses and contributing over 80 percent of employment and about 50 percent of GDP,” Olusi said. “They are crucial for food production and overall economic development.”
He added that sufficient financial support and an enabling environment are essential for MSMEs to improve the socioeconomic conditions of the poor by creating jobs, promoting local raw material usage, and driving economic growth.
This year, the bank has provided loans totaling N77.65 billion to nearly 1,000 MSMEs across Nigeria, ranging from local palm kernel oil processors to printing presses and furniture makers.
To further its impact, BOI has prioritized six thematic areas: MSMEs, digital economy, youth and skills, climate and sustainability, infrastructure, and gender. This strategic focus ensures that every loan disbursed contributes to job creation, environmental sustainability, and economic growth.
Additionally, the bank has launched the Rural Area Programme on Investment for Development, offering loan facilities at a 5 percent all-inclusive interest rate, with a tenor of up to three years and a six-month moratorium. This program aims to empower small businesses in rural areas to generate employment and enhance living standards.
During the event, Minister of Industry, Trade, and Investment, Doris Anite, emphasized the government’s commitment to integrating MSMEs into initiatives aimed at reducing food insecurity and enhancing the production of essential goods and services.
Anite stated, “MSMEs are the backbone of many economies around the world, especially in developing nations. They provide jobs, drive innovation, and produce essential goods, including food.”
Finance and Coordinating Minister of the Economy, Wale Edun, also spoke on the government’s efforts to increase BOI’s equity base, enabling the bank to mobilize more resources focused on MSMEs.
