The Bank of Industry (BOI) has revealed that it disbursed a total of N77.65 billion in loans to support nearly 1,000 medium, small, and micro-enterprises (MSMEs) across Nigeria during the first nine months of 2024. This funding aims to enhance the operations and productivity of these businesses, which play a crucial role in driving the country’s economic growth.
Dr. Olasupo Olusi, the Managing Director and CEO of BOI, disclosed this information during the 2024 BOI Annual Public Lecture Series held on Wednesday in Abuja. The event, themed “Creating Impact: The Role of MSME Support and Financing in Alleviating Poverty and Food Insecurity in Nigeria,” brought together industry leaders to discuss MSME financing.
In his opening remarks, Olusi emphasized the importance of addressing significant challenges that MSMEs face, such as limited access to financing, tough operating conditions, and infrastructure deficits. He highlighted that resolving these issues is vital for alleviating poverty and ensuring food security in Nigeria.
“As we know, MSMEs are the backbone of any thriving economy. In Nigeria, they represent around 97% of all businesses, contribute over 80% of employment, and account for about 50% of the country’s GDP,” Olusi said. “Despite their importance, MSMEs face numerous challenges, including limited access to capital and difficult operating environments. By providing the necessary financial support and enabling conditions, MSMEs can create jobs, boost local production, and contribute to economic growth.”
He further explained that the N77.65 billion in loans were distributed to MSMEs across the country, supporting businesses ranging from local palm kernel oil processors in the east, to women running printing presses in the north, and furniture makers in the south.
Olusi also outlined BOI’s commitment to promoting sustainable growth by focusing on six key areas: MSMEs, the digital economy, youth and skills development, climate sustainability, infrastructure, and gender equality. “This approach ensures that every loan disbursed creates jobs, fosters a greener economy, and drives economic growth,” he added.
To further support MSMEs in rural areas, BOI recently launched the Rural Area Programme on Investment for Development. This initiative offers loans with a 5% interest rate (all-inclusive), a three-year tenor, and a six-month moratorium, aimed at improving living standards, curbing youth restiveness, and contributing to national economic growth.
Doris Anite, the Minister of Industry, Trade, and Investment, praised the government’s efforts to incorporate MSMEs into its food security initiatives. “MSMEs are the backbone of many economies worldwide, especially in developing nations like ours,” Anite stated. “They not only provide jobs and essential goods but also play a crucial role in addressing poverty and promoting economic growth.”
Additionally, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the government plans to increase BOI’s equity base to better support MSMEs. Represented by Armstrong Takang, Managing Director of the Ministry of Finance Incorporated, Edun said, “This increase will enable the bank to better mobilize resources and focus on empowering MSMEs.”
The event also saw the launch of two significant publications: The BOI Journal of Development Finance (Technical) and The BOI Journal of Development Review (Non-Technical). Additionally, BOI introduced the PriceSense NG app, a price intelligence tool that provides real-time monitoring of food commodity prices across the country.
