NECA applauds FG, BOI over N75bn MSME intervention fund

The Nigeria Employers’ Consultative Association (NECA) applauded the Federal Government and the Bank of Industry (BOI) for launching the N75 billion intervention fund scheme to provide low-interest loans to micro, small, and medium enterprises (MSMEs) in the country.

The scheme, designed to support 75 million MSMEs with up to N1million each, opened its application portal recently, drawing responses from key economic stakeholders.

Reacting, Adewale-Smatt Oyerinde, director-general of NECA, described the fund as a much-needed boost for small businesses in Nigeria.

He highlighted the initiative as “a positive measure towards the sustainability of small businesses,” especially in light of current economic challenges. Oyerinde pointed out that limited access to affordable financing has long been a barrier to MSME growth.

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“Affordable loans and absence of medium to long term tenured credits are major obstacles to the growth and development of small businesses in the country and traditional bank loans, often with interest rates around 30 percent, are out of reach for many small businesses,” he said.

The BoI’s intervention, with its low-interest provision, provides MSMEs with a more accessible alternative.

Nigeria’s MSMEs account for 96 percent of businesses in the country, contribute about 84 percent of national employment and add approximately 40 percent to the GDP.

Oyerinde noted that MSMEs also support large-scale industries by supplying essential goods and services.

“In developed economies, the strength of big companies relies heavily on the input of robust SMEs,” he explained.

He urged the BoI to collaborate further with the organised private sector to ensure that eligible businesses benefit from the intervention. He also recommended that the Federal Government consider increasing the funds to provide more substantial support to medium-sized enterprises, thereby encouraging broader economic growth.