The Bank of Industry (BOI) has announced the disbursement of approximately N77.65 billion in loans to nearly 1,000 Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, aimed at enhancing their operations and contributing to economic growth.
During the bank’s inaugural public lecture series themed “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Security in Nigeria,” Dr. Olasupo Olusi, the Managing Director and Chief Executive Officer of BOI, highlighted the diverse beneficiaries of the loans, which range from local palm kernel oil processors in the east to printing press operators in the north and furniture makers in the south.
Dr. Olusi emphasized that the BOI’s support extends beyond financial assistance, focusing on creating an environment conducive to sustainable growth through capacity-building programs, technological innovation, and connections to both domestic and international markets. He stated, “By empowering MSMEs with the tools and resources they need to thrive, we are fostering a culture of innovation and entrepreneurship, driving job creation, poverty reduction, and inclusive economic growth.”
He reiterated the importance of addressing critical gaps in support for MSMEs, which align with President Bola Ahmed Tinubu’s renewed hope agenda. The BOI has prioritized six key areas: MSMEs, the Digital Economy, Youth & Skills, Climate and Sustainability, Infrastructure, and Gender. This strategic focus aims to ensure that every loan disbursed contributes to job creation and overall economic development.
At the event, the BOI also launched two significant publications: *The BOI Journal of Development Finance* and *The BOI Journal of Development Review*, both aimed at disseminating valuable insights and analyses on development finance and MSME policy in Nigeria and Africa. Additionally, the BOI introduced the BOI PriceSense NG, a price intelligence dashboard and mobile app designed for real-time monitoring of food commodity prices across the country.
Dr. Olusi stated, “In Nigeria, MSMEs constitute approximately 97% of all businesses, contributing over 80% of employment and about 50% of GDP. They are crucial for food production and economic development.” However, he acknowledged the significant challenges these businesses face, such as limited access to finance and infrastructural deficiencies, which hinder their potential to alleviate poverty and enhance food security.
To address these challenges, the BOI has recently partnered with the Small and Medium Enterprises Development Agency of Nigeria, establishing a ₦1 billion fund for Nano and Micro Enterprises at a single-digit interest rate. Under this partnership, Nano Enterprises can access up to ₦1.5 million and Micro Enterprises up to ₦2.5 million at interest rates of 7.5% for working capital and 5% for term loans, with a repayment period of 24 months.
Furthermore, the BOI has initiated a ₦75 billion loan program for MSMEs, offering loans of up to ₦1 million at single-digit interest rates. Dr. Olusi revealed that the bank is currently reviewing 211,248 applications and has commenced disbursement to eligible applicants. To enhance participation and improve application quality, the BOI plans to deploy business clinics across all 36 states and the Federal Capital Territory in the coming days.
Through these initiatives, the Bank of Industry aims to empower MSMEs, fostering economic resilience and promoting sustainable development across Nigeria.
