140 manufacturers to access up to ₦1bn BOI loans at single-digit rate

….disburses ₦77.65 bn to 1,000 MSMEs nationwide

…Finance Ministry mulls additional equity stake in BOI

The Bank of Industry (BOI) has announced that about 140 manufacturing companies across Nigeria will receive loans of up to ₦1 billion under the Federal Government’s ₦75 billion Manufacturing Sector Fund.

The loans, which will be provided at single-digit interest rates and disbursed to beneficiaries based on the enterprise’s capacity and size, are part of the government’s efforts to support large production enterprises and bolster economic growth through increased industrial capacity.

This was disclosed by Olasupo Olusi, Managing Director and Chief Executive Officer of the BOI, during the Bank’s inaugural annual public lecture series. He highlighted that the funds have already been fully allocated to successful applicants across Nigeria’s six geopolitical zones, with disbursements underway.

Olusi stated that in partnership with the Manufacturers Association of Nigeria (MAN), BOI has measures to ensure transparency and accountability in the loan disbursement process.

“About 140 manufacturing companies will receive loans of up to N1 billion at single-digit interest rates. The funds under this program have been fully allocated to successful applicants across the six geopolitical zones of the country, and disbursements have also commenced.

“For transparency of the process under this scheme, we are 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 program,”

He explained that the initiative is part of a broader strategy to address the challenges facing Nigeria’s manufacturing sector, which is critical to the country’s economic development. By offering low-interest loans, he said BOI aims to boost production, enhance job creation, and promote sustainable growth in the manufacturing industry.

Olusi added that in addition to the Manufacturing Sector Fund, BOI has also supported Micro, Small, and Medium Enterprises (MSMEs) through various other financing initiatives.

Olusi revealed that so far this year, the Bank has disbursed ₦77.65 billion in loans to almost 1,000 MSMEs across the country, helping businesses in sectors ranging from palm kernel oil processing to furniture making.

According to him, these interventions align with the Federal Government’s efforts to alleviate poverty and enhance food security by supporting enterprises that drive economic growth and create jobs.

As part of President Bola Ahmed Tinubu’s “Renewed Hope Agenda,” he stated that the BOI is prioritising key areas including MSMEs, the digital economy, youth and skills development, climate sustainability, infrastructure, and gender equality. This approach ensures that every loan disbursed helps to create jobs, achieves a greener economy, and boosts overall economic growth and development.

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The BOI MD also announced the launch of the BOI PriceSense NG platform, a price intelligence dashboard that provides real-time data on price trends across the country, aimed at stabilizing markets, protecting consumers, and informing policy decisions related to food insecurity.

He said that the initiative will enhance transparency and accountability in the country’s food commodity markets.

“We are unveiling the BOI PriceSense NG, a price intelligence dashboard and mobile app for real-time monitoring of price variations of food commodities across the country. These initiatives reflect our dedication to generating impactful research, fostering innovative solutions, and promoting transparency in all our endeavours,” Olusi said

Wale Edun, minister of finance and Coordinating Minister of the Economy reaffirmed the government’s commitment to increasing its equity contribution to BOI.

Represented by Armstrong Takang, CEO, the Ministry of Finance Incorporated (MOFI), Edun emphasised that the commitment is crucial for mobilising more funds to support productivity across various sectors of the economy.

“The Minister of Finance is committed to working with the BOI to increase its equity base because through that increase, more funds can be mobilized,” Takang stated. He stressed that supporting institutions like the BOI, which he referred to as “the backbone of productivity,” is essential for sustainable economic growth.

He also mentioned ongoing collaboration with the Nigerian Export-Import Bank (NEXIM) to expand its capital base, further boosting productivity and economic growth.

Takang added that as one of MOFI’s portfolio companies, the BOI plays a pivotal role in supporting Nigeria’s economic development. He noted the importance of the lecture series organised by BOI which provides a platform to address key economic issues, particularly those concerning micro, small, and medium enterprises (MSMEs). He highlighted that MSMEs make up a significant portion of the economy and are vital for its growth.

“You cannot talk about the economy of Nigeria without mentioning MSMEs. They are a major part of our conversation and our economic future.

He further added that the ongoing lecture series and initiatives like these are essential for gathering data on policies and assessing their impact on the economy.

Doris Uzoka-Anite, Minister of Industry, Trade, and Investment, commended the BOI for its continued support of MSMEs through various financial and intervention programs, she also commended the Bank for the launch of the BOI’s Price Intelligence Platform, a new initiative designed to address inflation and lower food prices, contributing to Nigeria’s food security.

“Given the current global food security crisis, exacerbated by conflicts, pandemics, and climate change, initiatives like the Price Intelligence Platform are critical. We commend BOI for this and fully support its mandate to assist MSMEs,” Uzoka-Anite said.