BoI to disburse N1bn single-digit interest loans to 140 manufacturers

The Bank of Industry (BoI) has announced plans to disburse N1 billion single-digit interest loans to 140 manufacturers.

Olasupo Olusi, BOI’s managing director, spoke on Wednesday during the bank’s first annual public lecture in Abuja.

On September 13, Atiku Bagudu, minister of budget and economic planning, said the disbursement of support funds to local manufacturers is yet to commence because the ministry of finance and the ministry of budget and economic planning are still working on the policy framework.

Olusi said the disbursement is part of the bank’s efforts to support large production enterprises through the N75 billion federal government manufacturing sector fund.

He added that the BOI unveiled a N75 billion loan programme for micro, small, and medium enterprises (MSMEs), providing up to N1 million in single-digit interest loans for businesses in the category.

The BOI boss said the bank is currently reviewing 211,248 applications and has started disbursing funds to qualified applicants.

He said as part of efforts to increase inclusivity, the BOI will deploy business clinics across all 36 states and the Federal Capital Territory (FCT) to improve the quality of applications and broaden participation.

“While we are enabling Nano, Micro, Small and Medium size enterprises, which are critical to the growth of the economy in terms of their impact on economic growth and job creation, our efforts to support large production enterprises is also progressing under the N75 billion FGN Manufacturing Sector Fund,” Olusi said.

“About 140 manufacturing companies will receive loans of up to N1 billion at single-digit interest rates.”

He said the funds under the programme have been fully allocated to successful applicants across all six geopolitical zones and disbursements have already begun.

For transparency of the process under the scheme, Olusi said BOI is working with the Manufacturers Association of Nigeria (MAN) to ensure that all beneficiaries are real manufacturers.

“This is to provide additional validation of the loan applicants for the programme,” the managing director said.

On October 5, 2023, Vice-President Kashim Shettima said the federal government will support local manufacturers with N75 billion in a bid to bolster the manufacturing sector.

Also, the vice-president said the N75 billion will support 100,000 startups and MSMEs at single-digit interest rates.

On April 22, 2024, the government said it has commenced the loan disbursement process for MSMEs and the manufacturing sectors.

The initiative is aimed at boosting economic growth and industrial development.