The Federal Government has begun distributing a N75 billion single-digit interest loan to support Micro, Small, and Medium Enterprises, MSMEs, through the Bank of Industry, BOI.
This initiative, announced by the Senior Special Assistant to the President on Job Creation and MSMEs, Mr. Tola Adekunle-Johnson, was disclosed during a national town hall meeting held in Abuja. The event also took place simultaneously in Ogun, Bauchi, Enugu, and Kaduna states to inform MSMEs of the loan requirements and the benefits of the Presidential Grant and Loan Scheme.
“This initiative was approved by President Bola Tinubu in 2023 to serve as a palliative following subsidy removal,” Adekunle-Johnson stated. The loan is available at a fixed 9% interest rate, with amounts up to N1 million, designed to be accessible to MSMEs throughout Nigeria without hidden charges.
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According to Adekunle-Johnson, BOI branches nationwide will serve as access points for MSMEs. He urged potential borrowers to approach BOI directly, ensuring they avoid scams and adhere to all official procedures. “Once the necessary requirements are met, disbursements will happen swiftly,” he added.
BOI’s Managing Director, Dr. Olasupo Olusi, represented by Executive Director Mabel Ndagi, noted that MSMEs are crucial to Nigeria’s non-oil economic sectors, including agriculture, manufacturing, and services. However, these enterprises often face difficulties securing funding to scale up their operations. As a result, the government introduced a N200 billion intervention fund to support both MSMEs and manufacturing enterprises.
Highlighting the bank’s dedication to MSMEs, Access Bank’s Managing Director, Mr. Roosevelt Ogbonna, shared that the institution has been prioritizing MSME support, especially for women and youth, since 2008. “About 94% of all Nigerian businesses are MSMEs, with 66% of these owned by women and youth. We are committed to being the primary bank for MSMEs,” Ogbonna said.
This funding scheme aims to catalyze growth in the MSME sector, driving economic development, job creation, and innovation across Nigeria.
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