The Bank of Industry (BoI) has revealed plans to disburse N120 billion to two million micro, small, and medium enterprises (MSMEs) across Nigeria by the end of 2024. This initiative forms part of the bank’s ongoing strategy to stimulate economic growth by providing affordable capital to businesses.
BoI provides loans to MSMEs at single-digit interest rates, offering a significant contrast to the 35% interest rates charged by commercial banks, particularly in light of the recent increase in the Central Bank of Nigeria’s (CBN) Monetary Policy Rate (MPR).
At a press conference in Lagos marking the bank’s 65th anniversary, Olasupo Olusi, the Managing Director and CEO of BoI, discussed the bank’s achievements. He disclosed that BoI had raised €2 billion (approximately N3.4 trillion) from international institutions, bolstering its capacity to support Nigerian businesses.
Olusi noted that BoI’s authorised share capital was raised to N250 billion in 2007 and later increased to N500 billion in May 2023 to better enable the bank to meet its mandate. The bank has also formed strategic alliances with over 300 business development service providers and partnered with 10 SME-friendly commercial banks since 2014, further supporting MSMEs.
Support for MSMEs and Economic Impact
Shekarau Omar, BoI’s Executive Director for MSMEs, highlighted the crucial role MSMEs play in Nigeria’s economic development. Estimated at 40 million in number, MSMEs contribute 46.32% to the nation’s Gross Domestic Product (GDP) and account for 87.9% of employment, despite 89.4% of them operating within the informal sector.
Omar further emphasised BoI’s continued support for the sector, pointing out that in 2023, the bank exceeded its target by disbursing N64 billion to 1,000,250 MSMEs, surpassing its original goal of N54 billion. In 2024, BoI has already disbursed N107 billion to over 1.5 million MSMEs and is on track to reach N115–120 billion by December.
Expansion Plans for 2025
Looking towards 2025, BoI plans to broaden its reach to underserved areas across Nigeria. The bank is launching the Rural Area Programme for Investment and Development (RAPID), designed to bring financial services to rural businesses. A sum of N3.7 billion has been allocated for this initiative, with disbursements expected in the first quarter of 2025.
Additionally, BoI aims to expand its presence to all state capitals in Nigeria by the first quarter of 2025, extending its operations beyond the 33 states where it currently operates. This expansion is part of BoI’s commitment to supporting MSME growth through partnerships with state governments, valued at N12 billion over the last three months.
Omar stated, “By the end of Q1 2025, we aim to have a presence in every state capital in Nigeria. This bank belongs to the MSMEs, and we are committed to being closer to them to effectively serve their needs.”
BoI’s ongoing focus on MSMEs underscores the vital role these businesses play in driving Nigeria’s economic growth. Through its provision of financial resources and support, the bank continues to play a pivotal role in the development of the nation’s MSME sector.
