N1bn for Distribution: Bank of Industry Announces Loan for Nigerian Businesses as Hardship Persists
- The Bank of Industry intends to lend up to N1 billion to 140 Nigerian industrial companies operational across the country
- Its MD underlined that the loan was meant to guarantee economic growth, stimulate employment creation, and support production
- The head of BOI also revealed that the Bank had lent N77.65 billion to almost 1,000 MSMEs in the nation's various sectors
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Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
As part of the N75 billion manufacturing sector fund established by the federal government, the Bank of Industry (BOI) has announced plans to lend up to N1 billion to 140 manufacturing enterprises in Nigeria.
Source: Getty Images
BOI's managing director, Olasupo Olusi, made the remark at the bank’s maiden annual public lecture series in Abuja, BusinessDay reported.
He clarified that the loan was intended to promote employment creation, assure economic growth, and encourage production.
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“About 140 manufacturing companies will receive loans of up to N1 billion at single-digit interest rates.
“The funds under this programme have been fully allocated to successful applicants across the six geopolitical zones of the country, and disbursements have commenced.
“For transparency, the programme is working with the Manufacturers Association of Nigeria (MAN) to ensure all beneficiaries are genuine manufacturers, providing additional validation of loan applicants.”
Low interest loan
Olusi said BOI hopes to increase output, improve job creation, and foster sustainable growth in the industrial sector by providing low-interest loans.
According to the BOI head, the bank has disbursed N77.65 billion in loans to approximately 1,000 MSMEs across various sectors in the country.
He pointed out that by assisting businesses that stimulate economic growth and provide employment, these interventions complement the federal government's initiatives to reduce poverty and improve food security.
Olusi reiterated the launch of the BOI PriceSense NG portal, a dashboard for pricing intelligence that offers up-to-date information on price movements throughout Nigeria.
“The platform aims to stabilise markets, protect consumers, and inform policy decisions related to food insecurity.
“We are unveiling the BOI PriceSense NG, a price intelligence dashboard and mobile app for real-time monitoring of price variations of food commodities nationwide.
“These initiatives demonstrate our commitment to impactful research, innovative solutions, and transparency in all endeavours,” Olusi said.
On his part, Dr. Doris Uzoka-Anite, minister of industry, trade, and investment, underlined the government's commitment to using MSMEs to spur economic growth by promising better access to capital, innovation, and policy support.
Meanwhile, Nigerians have expresses gratitude on the initiative, describing it as one that would help businessses survive amid the difficult terrain.
Kassie mbah, a business owner said,
"Initiatives like this should be encouraged in Nigeria because this is exactly what most companies need to survive. Operating busness in Nigeria is not easy at all."
MAN proposes single-digit government loan
Legit.ng earlier reported that the Manufacturer Association of Nigeria (MAN) disclosed how the government provides affordable credit to support the sector given the numerous challenges businesses face in the country.
Ajaji Kadir, director general and CEO of MAN, spoke on macroeconomic challenges due to the volatility in foreign exchange rates at the Norrenberger Economic Outlook titled, "Nigeria: Beyond the reforms"
He pointed out that the manufacturing sector has been affected by different logistics flows as it is one of the most susceptible to international shocks and geopolitics.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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