Proshare analysts have called for an impact assessment of the concessionary lending by the Bank of Industry (BoI) to determine the size of the impact the country gets from every buck loaned.
Data from the Bank of Industry (BOI) shows that it has extended a total of N315 billion to Micro Small and Medium Enterprises (MSMEs) over the period 2015 – 2021. Analysts note that while MSMEs account for 45 per cent of employment in Nigeria and 33 per cent of the country’s Gross Domestic Product (GDP), the impact of the two recessions in 2016 and 2020, the legacy FX scarcity, multiple taxation, infrastructural deficit, and other challenges have forced the closure of many small businesses.
Meanwhile, available records show that the Federal Government has disbursed N1.24 trillion to 4.21 million enterprises through the Bank of Industry in six years, the latest report on disbursements by the bank showed.
Data in the report indicated that the disbursements, comprising loans and grants, were received by micro, small and medium enterprises as well as large-scale businesses between 2015 and 2021.
In the document, titled, ‘Institutional Turnaround for the Next Level’, obtained by our correspondent in Abuja on Friday, the Managing Director, BOI, Olukayode Pitan, explained that a total of N315bn was disbursed to over 4.2 million MSMEs.
This, he said, created an estimated 4.896 million direct and indirect jobs across the country during the six-year period.
For large enterprises, the BOI boss stated that the government through the bank disbursed N927.1 bILLIOn to 1,074 businesses, creating 9.048 million direct and indirect jobs during the period under review.
He noted that for the Government Enterprise Empowerment Programme and the N-Power Social Investment Programmes, the bank facilitated the disbursement of N68.0bn ($220.6 million) to 2.9 million beneficiaries.
On the North East Rehabilitation Fund, the report stated that “to date N569.3 million ($1.8 million) has been disbursed to 56,934 beneficiaries.
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