The Federal government, through the Bank of Industry, BOI, yesterday flagged off the disbursement of the N75 billion MSMEs Intervention Fund for Small Scale and Micro Enterprises in the country.
Announcing the flag off at a press conference in Abuja, National President, Nigerian Association of Small Scale Industrialists, Dr Solomon Daniel Vongfa, says will be a game changer and lifeline for the Medium Scale and Micro Enterprises, MSMEs in the country.
The loan scheme is a partnership between NASSI and the Bank of Industry, BOI.
According to the NASSI, the loan scheme which he described as a beacon of Hope for MSMEs is more than just a financial injection for countless MSMEs that have been struggling to access affordable credit at single digit interest rate of 9%.
He expressed gratitude to the Federal Government of Nigeria for its visionary initiative to launch the N75 Billion MSME Intervention Fund.
He said, “the landmark program, in partnership with the Bank of Industry (BOI), is a testament to the government’s unwavering commitment to empowering Micro, Small, and Medium Enterprises (MSMEs) across the nation.
READ ALSO: Strike: Non-Academic Staff Unions shut down federal universities over unpaid salaries
Tinubu unveils national lottery trust fund 4-year plan
” The N75 billion MSME Intervention Fund is more than just a financial injection; it is a beacon of hope for countless MSMEs that have been struggling to access affordable credit. This initiative will undoubtedly catalyze economic growth, create jobs, and foster innovation.”
He listed some of the key benefits of the fund to include: Affordable Financing: The fund offers loans at competitive interest rates, making it easier for MSMEs to secure the capital they need to expand their operations;
Simplified Application Process: The application process has been streamlined to minimize bureaucratic hurdles and ensure timely disbursement of funds; Technical Assistance: The fund will provide technical assistance and capacity-building programs to help MSMEs improve their business practices and enhance their competitiveness;
Our Role in Sensitization
As the Nigerian Association of Small-Scale Industrialists, we are committed to playing a pivotal role in sensitizing MSMEs about this groundbreaking initiative. We will organize workshops, seminars, and outreach programs to educate entrepreneurs about the eligibility criteria, application process, and benefits of the fund in paartneship with BOI across the 36 states.”
He urged all eligible MSMEs to seize the opportunity and apply for the N75 Billion MSME Intervention Fund.
“This is a golden chance to unlock your business’s full potential and contribute to the economic prosperity of our nation.
“The N75 Billion MSME Intervention Fund is a game-changer for Nigerian MSMEs. By working together with the government and financial institutions, we can create a thriving entrepreneurial ecosystem that will drive sustainable economic growth.
We extend our heartfelt thanks to the Federal Government and the Bank of Industry for their tireless efforts in making this initiative a reality.”
In his remarks, the Director General of NASSI, Ifeanyi Oputa said the succesive administrations in the past had announced over a trillion plus intervention funds for MSMEs at various times over the past 15 years, but all have come to naught because they lacked transparency.
He said, “NASSI signed the MoU with BOI lady week as an association which stands in the gap for the real enterprise people of Nigeria. Now, if we’d said that $75 billion announced in 2024 is a landmark announcement, why do we say so? There were announcements in 1999 with the MSME’s Fund of over $100 and something billion.
“There are announcements throughout the period of the past 15 years, $220 billion MSMEs for creativity, $210 billion for MSMEs. We’ve had over a trillion plus, which the government has announced at various times over the past 15 years, but all have come to naught, where people, the real enterprise people, have not had access to the money.
“So what’s the point in announcing money that people cannot access? And when you ask, we’ve had meetings at NASSI with CBN, because we also do advocacy. We’ve had meetings where we’ve asked, how is it possible that a $230 billion fund is provided, and you say SMEs cannot access it? Our members are not the beneficiaries. We’ve asked sister and sidelining people, but do you know who got this money? And we don’t find out who got this money.
“So the processes have not been transparent. We’ve taken this to the CPN several times, that this is not transparent. If people are not getting the money, there’s no point announcing on the radio about a fund that people cannot get.
“So, we’ve gone behind the scenes. We’ve been making this advocacy severally, and said we will no longer be part of any announcement that does not have the little guy at heart. I’m proud to announce to you that after our several conversations, because the Bank of Industry, which was formerly a combination of the NERF fund and NIDB back in the day, NSSI was on board with the NIDB and NERF fund for MSMEs for the past over 40 years.”
The representative of BOI, Amina Habo-Mohamed, said the objective of the loan is to provide affordable loans to MSMEs across Nigeria.
“This is an FGN fund that has been created by the federal government, and the objective is to provide affordable loans to MSMEs across Nigeria.
“We expect that this intervention program would reduce the cost of production, would provide a number of jobs for the masses, and would also improve the GDP growth of the country. So now, so this is a 75 billion Naira fund, and we expect to reach at least 75,000 enterprises.”
The loan scheme which is designed to run for three years is open for application from today on: https://fgnboimsmeinterventionloan.boi.ng/