By Zainab Olufunmi
The Federal Government says loans will be made available for Micro, Small, and Medium Enterprises (MSMEs) to support their businesses and stabilise the economy.
The Managing Director, Bank Of Industry, (BOI) Dr. Olasupo Olusi disclosed this during the Presidential grant and loans for MSMEs on Friday in Kano.
Olusi, represented by Aminu Yusuf, the Regional Manager of BOI in Kano, said the purpose is to share progress and build momentum in implementation of N200 billion Presidential intervention fund.
He said it’s a landmark initiative of President Bola Tinubu’s administration to empower Micro, Small, and Medium Enterprises and revitalise the manufacturing sector.
“This initiative, part of the Presidential Intervention Fund, provides loans of up to N5 million at a single-digit interest rate of 9% per annum, with a three-year tenure and no collateral requirement.
“The goal is to help MSMEs access financing and grow their businesses, while also creating jobs nationwide.”
He described the programme as more than policy directive, rather, it is an investment in Nigeria’s future.
According to him, “it is a commitment to foster inclusive economic growth by unlocking the potential of our most dynamic business segments.
“MSMEs are the engine of Nigeria’s economy. In Kano, we see firsthand how MSMEs bring life to the local economy.
“They create jobs, provide livelihoods, and drive innovation, Nationally MSMEs account for 96 per cent of all businesses, 84 per cent of employment, and nearly half of our GDP,”he said.
Olusi further explained that most of them continue to face real challenges from access to finance to the cost of doing business, adding that such is what the N200 billion intervention seeks to address.
“We have disbursed over N107 billion to almost 900,000 beneficiaries across the six geo-political zones of Nigeria. Out of which over 51,033 beneficiaries valued at over N12.54billion were from Kano State.
“N50 billion is to support one million nano businesses, market women, vulcanizers, mobile tailors, food vendors will receive a N50,000 grant, across Nigeria’s 774 Local Government Area,”he said.
The managing director said that N75 billion MSME loan scheme is for small businesses ready to scale, under this scheme, they can access up to N5 million loans at nine percent per annum, with a three-month moratorium and a tenor of up to three years.
“The remaining N75 billion Manufacturing Sector Fund (MSF) is targeted at addressing needs of our manufacturers, who face significant challenges due to rising costs, infrastructure deficits, and supply chain disruptions.
On his part, Bashir Jafa, State Manager Kano Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) said they invite people, who are into various businesses to sensitise them on how to access Presidential grant and loan.
In the same vein, Mr Kelvin Vihishima, chairman of Tigris consult limited thanks the federal for introducing presidential grants and loan scheme encourage everybody to take advantage and participate in the scheme.
Other organisations in the MSME space such National Association of Chambers of Commerce Industry, Mines and Agriculture (NACCIMA), Nigerian Association of Small and Medium Enterprises – NASME – Kano State Chapter and various artisan and trader association were making those who honoured the event.