FG begins disbursement of N75bn single-digit loan to MSMEs

Temitola Adekunle-Johnson, the senior special assistant to the president on job creation and MSMEs, says the federal government has commenced the disbursement of N75 billion single-digit loan to micro, small, and medium enterprises (MSMEs) through the Bank of Industry (BOI).

Adekunle-Johnson spoke on Wednesday during a nationwide town hall meeting to sensitise MSMEs on the presidential grant and loan scheme in Abuja.

On October 29, Olusegun Dada, special assistant to the president on social media, announced a partnership between the federal government and the BOI to support 75,000 MSMEs with N1 million loan each.

Dada said the loan comes with a single-digit interest rate.

According to Adekunle-Johnson, MSMEs can now visit any BOI branch to apply for and obtain a loan.

“We are live in Ogun, Bauchi, Enugu, Kaduna states simultaneously. In 2023, President Bola Tinubu approved some funds as palliative to cushion the effects of subsidy removal,” the presidential aide said.

“We are here today to sensitise MSMEs to the loan, which is currently open all over the country.

“MSMEs can walk into any Bank of Industry from today and apply for this loan. It is a single-digit loan, it is nine per cent, it is fixed, no hidden charges.

“This is the one and only single-digit loan you can get, and you can get up to N1 million.

“It is important for us to sensitise the people to this facility so that they don’t fall into the hands of people who will tell them to bring money before they can access it.”

He said applicants should contact the Bank of Industry directly for any required information while assuring that once applicants provide the requirements, they will get the loan immediately.

‘BOI HAS SET UP N200BN PRESIDENTIAL INTERVENTION FUND’

Also speaking at the event, Olasupo Olusi, the managing director of BOI, said a N200 billion presidential intervention fund has been set up to support MSMEs and manufacturing enterprises to drive economic growth and enhance job security.

Olusi, represented by Mabel Ndagi, the executive director, public sector and interventions of BOI, said MSMEs contribute significantly to innovation, economic growth, and job creation across the agriculture, manufacturing, and services sectors.

“Despite the immense contribution to economic growth, MSMEs struggle to access the necessary funding to reach their full potential,” Olusi said.

“In recognition of this, the Federal Government introduced the N200 billion intervention fund for MSMEs and Manufacturing Enterprises and appointed the Bank of Industry as the executing agency to implement this initiative.”

On October 3, Olusi said BOI plans to disburse N1 billion in single-digit interest loans to 140 manufacturers.