As part of its mandate of supporting medium, small, and micro-enterprises to grow, the Bank of Industry said it disbursed loans totalling N77.65bn to about 1,000 MSMEs across the country within the first nine months of 2024.
Addressing dignitaries who attended the 2024 BOI Annual Public Lecture Series held on Wednesday in Abuja, BOI Managing Director and Chief Executive Officer, Dr Olasupo Olusi, explained that the financial assistance would enable the beneficiaries to enhance their operations, improve their productivity and contribute to the overall economic growth of the country.
Welcoming participants at the event themed, ‘Creating Impact: The Role of MSME Support and Financing in alleviating poverty and food insecurity in Nigeria’, Olusi stated that the loan disbursement is part of the government’s strategy to address significant challenges such as limited access to finance, difficult operating environment, and infrastructure deficiencies.
He also emphasised that the disbursement of the loans to the business owners is crucial for alleviating poverty and ensuring food security in Nigeria.
Describing MSMEs as the bedrock of any thriving economy, the BOI boss disclosed that MSMEs make up approximately 97 percent of all businesses contributing to over 80 percent of employment and about 50 percent of GDP, adding that they are the driving force of food production and the overall economic development of the country.
He identified some of the challenges facing small business owners such as limited access to finance, challenging operating environments, and infrastructure deficiencies, emphasising that addressing these issues is essential to alleviating poverty and ensuring food security.
Olusi stressed that through sufficient financial support and an enabling environment, MSMEs are better equipped to improve the socio-economic conditions of the poor by creating employment opportunities, promoting the utilization of local raw materials, and driving economic growth.
He said some of the beneficiaries of the loan facility “range from the local palm kernel oil processor in the east to the woman with a printing press in the north and a local furniture maker in the south, amongst others.”
According to him, the bank will continue to create an environment that promotes sustainable growth by providing access to capacity-building programs, encouraging technological innovation, and facilitating connections between businesses and both domestic and international markets.
To deepen the bank’s impact, he said it has prioritized six key thematic areas including MSMEs, Digital Economy, Youth & Skills, Climate and Sustainability, Infrastructure, and Gender, adding that the approach ensures that every loan disbursed helps to create jobs, achieves a greener economy, and boosts overall economic growth and development.
The Minister of Industry, Trade and Investment, Doris Anite, while making her remarks said that the government is focused on incorporating MSMEs into its initiatives aimed at reducing food insecurity and enhancing the production of essential goods and services, including food.
For the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, the government is working to increase the equity base of the bank.
Represented by the Managing Director of the Ministry of Finance Incorporated, Armstrong Takang, Edun stated that this increase in equity will enable the bank to better mobilize resources and focus more on supporting MSMEs.
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