Updated on December 24, 2023
In a significant move, the Federal Government, in collaboration with the Bank of Industry (BOI), is set to disburse loans amounting to N75 billion to micro, small, and medium enterprises (MSMEs) across Nigeria. The disbursement, scheduled to commence in January 2024, aims to provide vital financial support to small businesses with an attractive interest rate of 9%.
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This initiative, led by the Office of the Vice President, is a testament to the government’s commitment to empowering MSMEs. According to Temitola Adekunle-Johnson, the Senior Special Assistant to the President on Job Creation & MSMEs, the loans will be disbursed through existing platforms, with a particular focus on women and youths.
The collaborative efforts between the Federal Government and the Bank of Industry underscore their dedication to uplifting MSMEs. Adekunle-Johnson highlighted past collaborations with public and private sector stakeholders, citing the recent enhancement of the Access Bank loan scheme for MSMEs from N30 billion to N50 billion.
The move aims to increase the number of beneficiaries and positively impact more livelihoods. The commitment to providing both grants and loans reflects the government’s strategy for fostering economic growth, job creation, and innovation within the MSME sector.
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This announcement follows Vice President Kashim Shettima’s assurance to small business owners about expediting access to single-digit loans. The government acknowledges the pivotal role of MSMEs in driving economic growth and job creation, and this initiative demonstrates their proactive steps toward ensuring quick and efficient access to financial support for Nigerian small businesses.
In summary, the Federal Government’s collaboration with the Bank of Industry to disburse N75 billion in loans to MSMEs signifies a substantial boost for small businesses, emphasizing inclusivity and support for women and youths. The initiative aligns with the government’s broader commitment to fostering economic development and providing accessible financial resources to drive innovation and growth within the MSME sector.