The Bank of Industry (BoI) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have joined forces, pooling N1 billion to offer low-interest loans to nano and micro enterprises in Nigeria. This partnership entails both institutions depositing N500 million each into a Matching Fund Account managed by the Bank of Industry. The initiative aims to democratize financial access for small businesses, spurring economic growth and stability.
Mr. Olasupo Olusi, Managing Director of the Bank of Industry, acknowledged the challenges leading up to the agreement but expressed optimism about the promising relationship it will cultivate between the organizations.
Mr. Charles Odii, Director-General of SMEDAN, hailed the collaborative effort as “historic and a milestone” in providing financial access to nano and micro enterprises in Nigeria. He praised the joint technical team for their pivotal role in bringing the agreement to fruition.
Under this scheme, nano enterprises can access up to N1.5 million, while micro enterprises can obtain up to N2.5 million. Applicants must provide two guarantors as security, and the loan has a tenor of 24 months. The interest rates are set at 7.5% per annum for working capital loans and 5% per annum for term loans.
This agreement is poised to significantly bolster the financial capacities of small businesses, fostering economic development and facilitating job creation throughout Nigeria.
