The Bank of Industry (BoI) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have signed a Memorandum of Agreement (MoA) to pool N1 billion for providing single-digit interest rate loans to nano and micro enterprises in Nigeria.
Under the agreement, both federal institutions will deposit N500 million each into a Matching Fund Account managed by the Bank of Industry. The initiative aims to democratize access to finance for small businesses, fostering economic growth and stability.
Mr. Olasupo Olusi, Managing Director of the Bank of Industry, acknowledged the challenging journey leading to the signing of the agreement but expressed optimism about the fruitful relationships it would foster between the two organizations.
Mr. Charles Odii, Director-General of SMEDAN, praised the collaborative effort, describing the agreement as “historic and a milestone” in providing financial access to nano and micro enterprises in Nigeria. He commended the joint technical team for their pivotal role in making the agreement a reality.
Loan Details:
Nano Enterprises: Can access up to N1.5 million.
Micro Enterprises: Can access up to N2.5 million.
Security Requirement: Applicants must provide two guarantors.
Loan Tenor: 24 months.
Interest Rates:
Working Capital Loans: 7.5% per annum.
Term Loans: 5% per annum.
This agreement is expected to significantly enhance the financial capabilities of small businesses, driving economic development and supporting job creation across Nigeria.
