BoI: N969bn disbursed to over 3m MSMEs in five years

The Bank of Industry (BoI) says it disbursed N969.7 billion worth of loans to over three million micro, small and medium enterprises (MSMEs) and 653 large businesses between 2015 and 2020.

Aderonke Akinluyi, BoI’s deputy head of business development, announced this at a webinar organised by the Lagos Chamber of Commerce and Industry (LCCI) on Tuesday.

According to BoI, the funds created 6.98 million direct and indirect jobs during the five-year period.

Akinluyi said the bank is currently collaborating with over 330 business development service providers (BDSPs) to offer advisory and business support services aimed at improving emerging MSMEs.

“Our business model reflects our goal to drive development through financial and advisory support to all customer levels, with dedicated teams for MSMEs, youth and women-led enterprises,” she said.

“Our collaboration with the BDSPs ensures that the MSMEs are almost handheld in structuring, and preparing their business models and plans.

“The collaboration also provides other entrepreneurial training as required and is split across the regional, state and national categories.”

Femi Shittu, BoI’s group head of engineering and technology, said the bank selected loan products include agro mechanisation, food and agro commodity processing and commercialisation of solar energy.

“The selected managed intervention funds include the Nigerian Artisanal and Small Scale Miners Finance Support Fund of N2.5bn with a five percent per annum interest rate,” Shittu said.

“The Nigerian Content Intervention Fund of 350m dollars to support indigenous oil and gas players is also available.”

In her remarks, Toki Mabogunje, LCCI president, said majority of MSMEs have not significantly benefited from available financing opportunities in the country.

Mabogunje attributed this to lack of information about funding schemes offered by different institutions; inability to meet the requirements for funding; and poor credit history.

The bank recorded a 78 percent increase in assets from N1.04 trillion in 2019 to N1.86 trillion in 2020 despite the COVID-19 pandemic.