BoI, SMEDAN Unveil Financial Assistance Of N1bn To MSMEs In Nigeria

BoI, SMEDAN Unveil Financial Assistance Of N1bn To MSMEs In Nigeria

The Bank of Industry (BoI), in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has launched a N1 billion support fund aimed at providing accessible financing to Nano and Micro Enterprises across Nigeria.

This disclosure was made by the managing director and chief executive officer of BoI, Dr. Olasupo Olusi, during the BoI Annual Public Lecture Series, yesterday in Abuja.

Themed: “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria,” the event brought together industry experts to discuss how Nigeria’s MSMEs can contribute to the country’s economic resilience.

The MD said the partnership marks a significant step towards enhancing the financial capacity of Nigeria’s Micro, Small, and Medium Enterprises (MSMEs), which make up 97 per cent of the country’s businesses, contributing over 80 per cent to employment and about 50 per cent to the Gross Domestic Product (GDP). The N1 billion fund, he added , is expected to boost the operations of these critical businesses, with loan amounts tailored to meet the varying needs of Nano and Micro enterprises.

Dr. Olusi highlighted the importance of MSMEs in driving Nigeria’s economic growth. He noted that despite their significant contribution to the economy, many of these businesses face critical challenges, particularly around access to affordable financing.

Under the new initiative, Nano businesses will be able to access a maximum loan of N1.5 million, while Micro businesses can secure up to N2.5 million. The loans will be offered at a highly competitive single-digit interest rate, with working capital loans priced at 7.5 per cent and term loans at five per cent. The repayment tenor is 24 months, allowing businesses the flexibility to repay the loans as they scale up their operations.

Dr. Olusi explained that this financial package goes beyond providing loans. According to him, BoI and SMEDAN have designed the program to include technical support, capacity-building initiatives, and advisory services for beneficiaries. This holistic approach ensures that recipients can effectively manage and grow their businesses, making the most of the financial resources provided.

Beyond the financial assistance, Dr. Olusi emphasised the broader goal of fostering an enabling environment for MSMEs to thrive.

He said the initiative ties into President Bola Ahmed Tinubu’s Renewed Hope Agenda, which focuses on economic diversification and industrialisation through robust support for MSMEs. It also reflects BoI’s strategic focus on six key thematic areas: MSMEs, the digital economy, youth and skills development, climate and sustainability, infrastructure, and gender.

He noted that while the N1 billion MSME fund is a key highlight, BoI’s efforts also extend to supporting larger enterprises.

Dr Olusi said under its N75 billion Manufacturing Sector Fund, the bank is providing loans of up to N1 billion to over 140 manufacturing companies across Nigeria. This initiative, which features single-digit interest rates, is designed to strengthen the manufacturing sector and drive industrial growth.

For transparency, he said BoI is working closely with the Manufacturers Association of Nigeria (MAN) to ensure that all beneficiaries of the manufacturing fund are legitimate manufacturers.

In addition to the newly- launched N1 billion MSME support fund, Dr. Olusi highlighted several other initiatives designed to uplift MSMEs in underserved areas, particularly through the Rural Area Programme on Investment for Development (RAPID). This initiative, according to him, has been instrumental in providing rural MSMEs with access to low-interest loans at just five per cent, with a flexible loan tenor of up to three years.

Dr. Olusi explained that the RAPID program focuses on creating employment, curbing youth restiveness, and promoting economic growth in Nigeria’s rural regions by enhancing access to affordable financing. He noted that the impact of the program is evident in the improved business activities in remote areas, where financial support is often limited.

Building on the program’s success, Dr. Olusi revealed that the government is poised to expand its reach by developing 300 new MSMEs in each state, including the Federal Capital Territory. This expansion will result in the establishment of 11,100 new rural-based MSMEs across the nation, further driving economic growth and development in previously underserved communities.

During the event, BoI also launched two landmark publications: The BOI Journal of Development Finance and The BOI Journal of Development Review. These publications, which are open-access, aim to provide key insights into MSME policy, development finance, and industrial growth in Nigeria. They are intended to serve as vital resources for policymakers, researchers, and industry practitioners.

In addition to the journals, BoI unveiled the BOI PriceSense NG, a price intelligence platform that provides real-time monitoring of price fluctuations in food commodities across Nigeria. This tool is designed to promote market transparency, inform policy decisions, and contribute to addressing food insecurity.

Speaking at the inaugural lecture series, minister of industry, trade, and investment, Dr. Doris Uzoka-Anite,hailed the institution’s efforts to strengthen MSMEs through financing and support initiatives, particularly in the face of rising global food security challenges.

The minister underscored the importance of the sector, noting that MSMEs represent over 90 per cent of businesses in the country and are instrumental in driving job creation, innovation, and local economic growth.

In response to the global food security crisis, exacerbated by conflicts, climate change, and the aftermath of the pandemic, the minister praised the BoI for its proactive steps in launching initiatives such as the BoI Price Intelligence Platform.

Dr. Uzoka-Anite urged stakeholders, including financial institutions and government agencies, to do more in providing targeted support to MSMEs, many of which are still underserved. She called for greater collaboration between development finance institutions, larger corporations, and international partners to ensure that Nigerian MSMEs receive the financial inclusion and technical assistance they need to thrive.

The minister further noted that the ministry, in partnership with BoI and other key agencies like SMEDAN and ITF, is committed to promoting initiatives that empower MSMEs in agriculture and other key sectors. These initiatives include the Presidential Loans and Grant Scheme, which aims to provide affordable financing to MSMEs, and programs like the Agri-Business Development and Empowerment Programme (ADEP), which promotes agribusiness as a viable career path for Nigerian youth and women.