The Bank of Industry (BOI) announced a significant contribution to Nigeria’s economic growth, revealing that it disbursed N77.65 billion in loans to nearly 1,000 medium, small, and micro-enterprises (MSMEs) during the first nine months of 2024. This financial support has enabled MSMEs across the country to enhance their operations, productivity, and, ultimately, their contribution to the economy.
Speaking at the 2024 BOI Annual Public Lecture Series in Abuja, BOI Managing Director and CEO Dr. Olasupo Olusi highlighted the bank’s focus on creating impact through MSME support. Themed “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria,” the event centered on how the bank’s initiatives are improving socioeconomic conditions, addressing poverty, and boosting food security.
Key Highlights of BOI’s Disbursements:
- N77.65 billion has been disbursed to around 1,000 MSMEs in various sectors across Nigeria, ranging from local manufacturing to agriculture and services, enabling businesses to scale operations and improve their productivity.
- 140 local manufacturers will receive up to N1 billion in loans from the Federal Government’s N75 billion Manufacturing Sector Fund. These loans are intended to spur industrial capacity and economic growth at single-digit interest rates.
BOI’s Support for MSMEs:
Dr. Olusi emphasized that MSMEs are crucial for Nigeria’s economic development, contributing over 80% of employment and about 50% of the GDP. However, these businesses often face significant challenges, including limited access to finance, a difficult operating environment, and inadequate infrastructure. BOI’s support aims to address these issues, thereby alleviating poverty and improving food security.
Six Thematic Areas for Economic Impact:
The BOI has prioritized six key areas for deepening its economic impact:
- MSME Development
- Digital Economy
- Youth and Skills
- Climate and Sustainability
- Infrastructure
- Gender Inclusion
Through these focus areas, the BOI aims to foster job creation, promote sustainability, and stimulate economic growth.
Special Program for Rural MSMEs:
Dr. Olusi also announced a Rural Area Programme on Investment for Development, offering rural MSMEs loans at a 5% interest rate, with tenors of up to three years and a six-month moratorium. The goal is to empower rural businesses, create employment, reduce youth restiveness, and stimulate economic activity in underserved areas.
Government Support and Vision:
Minister of Industry, Trade, and Investment, Doris Anite, reiterated the government’s commitment to supporting MSMEs, stressing their importance in reducing food insecurity and generating essential goods and services. Similarly, Finance Minister Wale Edun emphasized plans to increase BOI’s equity base, which would further enable the bank to extend its support to more MSMEs.
This concerted effort to strengthen MSMEs forms part of the broader national strategy to drive inclusive economic growth, improve livelihoods, and enhance Nigeria’s industrial capacity.
