Bank Of Industry Restates Commitment to Small and Medium Enterprises Devt

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BOI

From benjamin a ameh, Lagos

The Bank of Industry (BOI) has restated its commitment to supporting Small and Medium Enterprises (SME) ‎development in the country.

The Managing Director, BOI, Rasheed Olaoluwa explained that SMEs are vital for any country aiming to be one of the top 20 economies of the world by 2020.‎‎

Olaoluwa who was represented at the bank’s special day at the Lagos international trade fair by the Executive Director, SME in BOI, Waheed Olagunju said the N613 billion disbursed to more than 200 entrepreneurs had generated over 1 million jobs in the country.‎ ‎

According to him, 30 per cent of the bank’s risk assets will be focused on SMEs in order to touch and impact more positively to improve the standard of living of the citizenry.

“We have designed more products to help SMES in the country because we believe a lot more can be done ‎in terms of development for small businesses rather than large businesses,” he said.

He noted that one of the objectives of  its Cottage Agro Processing (CAP) launched months back was targeted at Small and Medium Industries (SMIs) at the low-technology; labour intensive end of the agro-processing spectrum, stating that‎ the fund will enable the BOI play its catalytic role of paving the way for other finance institution to follow.

“We are demonstrating to others how to lend to small and medium industries in the perceived high risk sectors of the economy. Inclusive growth is our primary consideration and it also represents BOI’s first direct intervention in any sector,” he stressed.

He implored SMEs ‎to take full advantage of the fund, also advising that loan applicants must come prepared with viable business plans in order to utilise the loans judiciously, add value and create job opportunities in the country.

‎ Olaoluwa noted that full and timely repayment of loans granted under ‎the fund, will provide the entrepreneurs with clear paths to bigger project loans from the BOI, while bringing greater wealth creation opportunities for their companies.

Also speaking at the event, the president, LCCI, Remi Bello said SMEs are the most veritable source of economic growth, adding that the multiplier effect is enormous in job and wealth creation for the economy.

Bello said the theme of the fair tagged “Promoting the Nigerian economy as a preferred investment destination” was chosen to underscore the critical importance of creating an enabling environment to attract new investments and grow existing ones.

“It is also to underline the imperative of building an economy that is diversified and sustainable. There is perhaps no better time to do this than now,” he said.

He said the pressing and overriding contemporary challenge in the nation’s quest for economic diversification and transformation is to fix the impediments to productivity and competitiveness in the economy.

“These include the state of infrastructures, especially public power supply; the challenge of substandard and fake products in the country which had done and is still doing serious harm to manufacturers; poor state of our roads; the high cost and limited access to funds, policy inconsistencies and the growing insecurity to mention a few of the inhibiting factors,” he added.


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