FG Boosts Nigerian MSMEs with ₦75 Billion in Single-Digit Loans from BOI

In a move aimed at catalyzing the growth of Micro, Small and Medium Enterprises (MSMEs) across Nigeria, the federal government has initiated the disbursement of ₦75 billion in single-digit loans through the Bank of Industry (BOI). This strategic intervention, approved by President Bola Tinubu, is set to provide much-needed financial relief and support to the country’s vibrant MSME sector.

Affordable Financing to Fuel MSME Growth

The loan program, unveiled during a nationwide town hall meeting led by Tola Adekunle-Johnson, the Senior Special Assistant to the President on Job Creation and MSMEs, offers MSMEs access to affordable financing at a fixed interest rate of just 9%. According to Adekunle-Johnson, this represents the “one and only single-digit loan” available, with a maximum loan amount of ₦1 million per applicant.

“MSMEs can work into any Bank of Industry from today and apply for this loan. It is a single-digit loan; it is nine per cent, it is fixed, no hidden charges,” Adekunle-Johnson explained, underscoring the transparent and favorable terms of the program.

Addressing the Funding Gap for MSMEs

The initiative aims to address the persistent challenge of MSME access to finance, a longstanding barrier to the sector’s growth and development. As Olasupo Olusi, the Managing Director of BOI, noted, “Despite the immense contribution to economic growth, MSMEs struggle to access the necessary funding to reach their full potential.”

The ₦200 billion intervention fund established by the government serves as a testament to its commitment to supporting MSMEs and driving economic growth through job creation. Mabel Ndagi, the Executive Director of Public Sector and Interventions at BOI, reiterated the bank’s dedication to promoting and nurturing the MSME ecosystem across the country.

Unlocking Opportunities for Nigerian Entrepreneurs

The town hall meetings held simultaneously in Ogun, Bauchi, Enugu and Kaduna states aimed to educate MSMEs on the loan program’s eligibility criteria and application process. This proactive outreach ensures that entrepreneurs across Nigeria are aware of and able to access the much-needed financial support.

“It is important for us to sensitise the people to this facility so that they don’t fall into the hands of people that will tell them to bring money before they can access it,” Adekunle-Johnson emphasized, underscoring the government’s efforts to protect MSMEs from predatory lending practices.

Empowering MSMEs for Sustained Growth

The ₦75 billion loan program represents a significant step forward in the government’s broader strategy to support the MSME sector, which is widely recognized as the backbone of the Nigerian economy. By providing affordable financing, the initiative aims to empower entrepreneurs to invest in their businesses, expand their operations and create more jobs, ultimately driving sustainable economic growth and development.

“If you need any information, if you are not sure of anything, go to the Bank of Industry,” Adekunle-Johnson advised, encouraging MSMEs to take advantage of the expertise and resources available through the implementing agency.