The Bank of Industry (BOI) has announced the disbursement of N77.65 billion in loans to medium, small, and micro-enterprises (MSMEs) across Nigeria in the first nine months of 2024. The financial aid, which has reached nearly 1,000 MSMEs, is aimed at boosting productivity, enhancing operations, and contributing to Nigeria’s overall economic growth.
BOI Managing Director and Chief Executive Officer, Dr. Olasupo Olusi, revealed these figures during the 2024 BOI Annual Public Lecture Series held in Abuja. Themed Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria, the event focused on the importance of financial support for small businesses.
Additionally, Olusi announced that 140 local manufacturers will receive loans of up to N1 billion each under the Federal Government’s N75 billion Manufacturing Sector Fund. The funds, which are disbursed through the BOI at single-digit interest rates, aim to bolster industrial capacity and economic growth. Although the exact amount allocated to each manufacturer remains undisclosed, the funds have already been fully allocated, with disbursements underway.
Olusi highlighted that the bank’s efforts are part of the government’s broader strategy to address challenges such as limited access to finance, infrastructure deficiencies, and a difficult operating environment for MSMEs. These challenges, he noted, are critical to alleviating poverty and ensuring food security.
“MSMEs are the bedrock of any thriving economy,” Olusi said. “In Nigeria, they make up 97% of all businesses, contribute over 80% of employment, and account for about 50% of GDP. These businesses are crucial to food production and overall economic development.”
He emphasized that financial support and an enabling environment would equip MSMEs to improve socioeconomic conditions, create jobs, promote the use of local raw materials, and drive economic growth. The BOI has prioritized six key areas for impact: MSMEs, digital economy, youth and skills, climate sustainability, infrastructure, and gender.
In line with these goals, the BOI recently launched the Rural Area Programme on Investment for Development to support MSMEs in rural areas with loan facilities at a 5% interest rate. The program aims to generate employment, improve living standards, and address youth restiveness.
During the event, Minister of Industry, Trade, and Investment, Doris Anite, underscored the government’s commitment to incorporating MSMEs into initiatives to combat food insecurity. “MSMEs are the backbone of many economies, particularly in developing nations like ours,” Anite said. “They play a pivotal role in addressing poverty and creating employment opportunities, especially for youth and women.”
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, also announced that the government is working to increase the equity base of the BOI, further strengthening its capacity to support businesses.
