The Bank of Industry (BOI) has allocated N22.89 billion to 29 manufacturers as part of its efforts to support the ailing manufacturing sector, which has been grappling with poor sales and escalating production costs. This was announced by BOI Managing Director, Dr. Olasupo Olusi, at the first interactive session between the Bank and the Organised Private Sector in Abuja on Monday.
Olusi explained that the disbursement is part of the N75 billion manufacturing sector intervention fund. In addition to the N22.89 billion, 20 other projects, valued at N6.3 billion, are in various stages of disbursement. The funds aim to provide crucial financial support to manufacturers as they navigate the challenging economic climate.
Highlighting the importance of collaboration, Olusi called for greater partnership between Small and Medium Enterprises (SMEs) and the government to drive industrial growth. He emphasized that the transformation of Nigeria’s industrial sector requires joint efforts in addressing systemic challenges, promoting innovation, and introducing technology and sustainability as key drivers of SME development.
The BOI MD also discussed the bank’s role in creating an enabling environment for businesses, focusing on reducing infrastructure gaps, easing regulatory bottlenecks, and improving market access. He underscored the need to align financial programs with the real needs of the sector to accelerate growth.
The manufacturing industry, which is facing a significant funding gap of about $160 billion according to the African Development Bank, continues to struggle with high energy costs, poor sales, and an unsold inventory of finished products. The Manufacturing Association of Nigeria (MAN) reported that unsold inventory jumped from N350 billion in 2023 to N1.24 trillion in the first half of 2024. As the sector’s contribution to Nigeria’s GDP declines, the government has acknowledged these challenges and established a work group aimed at revitalizing the industry.
With a collaborative approach, the BOI hopes to foster sustainable growth and innovation in the sector, helping manufacturers overcome the numerous obstacles they face and contribute more significantly to the economy.
