BOI-FGN single Digit loans for MSMEs to commence this month

In keeping with President Bola Ahmed Tinubu’s promise to support the transformation of the Micro small and Medium scale Enterprises (MSME) space in Nigeria, the Office of the Vice President, in collaboration with the Bank of Industry (BOI) is set to commence the disbursement of loans to MSMEs by January 2024.

The loans, totalling about N75billion, will be given to small businesses across the country at an interest rate of 9 percent.

The Federal Government and the Bank will leverage existing platforms to provide loans to small businesses, targeting women and youths.

Recall that the Federal Government has since the coming to office of the Tinubu administration, collaborated with stakeholders across the public and private sectors to provide massive support for MSMEs both in grants and loans.

Recently, the management of Access Bank Plc approved an upward review of its loan scheme for MSMEs from N30bn to N50bn.

According to the bank, the upward review is to increase the number of beneficiaries of the bank’s loan scheme and impact more livelihoods.

Earlier, Financial institutions have canvassed for alternative financing and digital payment adoption that will enhance the growth of small and medium-enterprises.

Stakeholders spoke at the 4th annual ‘MSME & start-up summit 2023’ with the theme, “The role of alternative financing and digital payment adoption for SMEs’ sustainability and competitiveness,’ in Lagos.

The Managing Director, Bank of Industry, Mr, Olukayode Pitan, while making a presentation titled ‘The role of alternative financing and digital payment adoption for enhancing MSMEs sustainability and competitiveness’, canvassed for SMEs’ support.

The BOI, he noted, provided financial assistance for the establishment of large, medium and small projects as well as the expansion, diversification and modernisation of existing enterprises; and rehabilitation of existing ones.

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