Federal Government Partners with BOI: N75 Billion, 9% Interest MSME Loans Set for January 2024 Boost

Infostride News, in partnership with the Bank of Industry (BOI), has finalized arrangements to commence the disbursement of a substantial sum of N75 billion to Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, starting from January 2024. This significant initiative, aimed at fostering economic growth, was unveiled in a statement issued by Temitola Adekunle-Johnson, the Senior Special Assistant to the President on MSMEs and Job Creation, on Tuesday, December 19, 2023, in Abuja.

The key feature of this financial support is the provision of loans at an attractive single-digit interest rate of 9%, underscoring the commitment to affordability for the recipients. Adekunle-Johnson emphasized that the primary beneficiaries of this program are expected to be women and youths, aligning with the government’s strategic focus on inclusive economic development.

The initiative is part of the ongoing efforts to fulfill President Bola Tinubu’s pledge to bolster the MSMEs sector in Nigeria. Adekunle-Johnson elucidated that the Federal Government, in collaboration with the BOI, will leverage existing platforms to seamlessly disburse the loans to small businesses, with a particular emphasis on empowering women and youth entrepreneurs.

 

Highlighting the government’s track record in supporting MSMEs, Adekunle-Johnson pointed out that the Tinubu-led administration has worked closely with stakeholders from both the public and private sectors to provide substantial assistance in the form of grants and loans. He cited the recent positive development of Access Bank Plc increasing its loan scheme for MSMEs from N30 billion to N50 billion as evidence of the administration’s commitment to amplifying support for small businesses.

Quoting Adekunle-Johnson,

“Recently, the management of Access Bank Plc approved an upward review of its loan scheme for MSMEs from N30 billion to N50 billion. The upward review, according to the bank, is to increase the number of beneficiaries of the bank’s loan scheme and impact more livelihoods.”

The government’s dedication to supporting MSMEs is further underscored by its commitment to providing substantial financial aid through both grants and loans. This commitment is aligned with the broader economic vision of the current administration, emphasizing the pivotal role that small and medium enterprises play in driving economic growth and job creation.

In a notable development, the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, had previously hinted at the initiation of the N75 billion Presidential Palliative Loan Programme for MSMEs, along with an additional N75 billion earmarked specifically for manufacturers. These financial interventions are complemented by the impending commencement of the long-awaited Presidential Conditional Grant Programme, designed to disburse a grant sum of N50,000 to nano businesses across all 774 local government areas.

Uzoka-Anite detailed the collaborative framework involving the Federal Ministry of Industry, Trade and Investment, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), State and Local Governments, Federal Legislators, Federal Ministers, Banks, and other Stakeholders. The loan program for both MSMEs and manufacturers is structured to offer an attractive single-digit interest rate of 9% per annum, making it a financially viable option for businesses seeking to expand or establish themselves.

As the government takes decisive steps to implement these comprehensive financial support programs, the landscape for MSMEs in Nigeria looks set to undergo a positive transformation. The infusion of substantial capital, coupled with favorable interest rates, reflects a strategic approach to fostering entrepreneurship, job creation, and economic resilience across diverse sectors. Infostride News remains dedicated to keeping the public informed about these crucial developments, as the nation anticipates a flourishing era for its small and medium enterprises.