More than 20,000 residents of Oyo State have so far benefited from the Federal Government’s intervention programmes targeted at Micro, Small, and Medium Scale Enterprises (MSMEs), according to the Bank of Industry (BOI).
Speaking in Ibadan at a town hall meeting on the N75 billion support scheme for MSMEs and the manufacturing sector, the Managing Director of BOI, represented by the Southwest Regional Manager, said MSMEs are the lifeblood of Nigeria’s economy and are particularly vital to local economic activity in Oyo State. The event was organised by the Federal Government’s Grants and Loans Programme in collaboration with the Bank of Industry.
According to the BOI, MSMEs in Nigeria make up 96 percent of all businesses, provide 84 percent of employment, and contribute nearly half of the nation’s GDP. Despite this, many still struggle with access to finance and the high cost of operations. The government’s N200 billion intervention fund, launched to address these challenges, has so far disbursed over N107 billion to close to 900,000 beneficiaries across the country. Of this, over N2 billion was allocated to more than 20,000 individuals in Oyo State.
The intervention is structured around three streams. The first is the N50 billion Presidential Conditional Grant Scheme (PCGS), aimed at supporting one million nano businesses, including market women, vulcanizers, mobile tailors, and food vendors. Each beneficiary across Nigeria’s 774 local government areas receives a N50,000 grant, with a focus on six sectors: trade, ICT, creativity, food services, transportation, and artisanship.
The second stream is a N75 billion MSME Loan Scheme, which enables small businesses that are ready to grow to access loans of up to N5 million. The loans are provided at a nine percent interest rate per annum, with a three-month moratorium and a repayment period of up to three years.
The third stream is the N75 billion Manufacturing Sector Fund (MSF), targeting manufacturers grappling with high operating costs, infrastructure challenges, and supply chain disruptions. In partnership with the Manufacturers Association of Nigeria, eligible manufacturers can access loans of up to N1 billion under this scheme.
Disbursement of these funds has been carried out through collaboration with trade associations and community groups, with BOI taking the lead in verifying applicant data and overseeing disbursements.
BOI described the initiative as more than just a financial relief programme, but a catalyst for job creation, innovation, and shared economic prosperity.
Several beneficiaries from Oyo State, including a trader and a food processor, expressed gratitude to the Federal Government for supporting their businesses and helping them sustain their livelihoods.
