The Bank of Industry (BoI) has revealed plans to disburse N1 billion in single-digit interest loans to 140 manufacturing companies as part of its ongoing efforts to support large-scale production enterprises. BoI Managing Director, Olasupo Olusi, made the announcement during the bank’s first annual public lecture in Abuja on Wednesday.
The loan disbursement is part of the federal government’s N75 billion Manufacturing Sector Fund, designed to enhance the growth of local manufacturers. Olusi highlighted that the initiative is aimed at supporting the manufacturing sector by providing much-needed financial resources at favorable interest rates, thereby boosting production capacity.
Olusi noted that the BoI has also rolled out a N75 billion loan programme for micro, small, and medium enterprises (MSMEs), offering up to N1 million in single-digit interest loans for smaller businesses. The bank is currently reviewing 211,248 applications for this programme and has already begun disbursing funds to qualified MSMEs.
He further outlined plans to increase the inclusivity of the scheme by deploying business clinics across all 36 states and the Federal Capital Territory (FCT). These clinics are designed to enhance the quality of applications and expand participation, ensuring that more businesses can benefit from the initiative.
“While we are enabling Nano, Micro, Small, and Medium size enterprises, which are critical to the growth of the economy in terms of their impact on economic growth and job creation, our efforts to support large production enterprises is also progressing under the N75 billion FGN Manufacturing Sector Fund,” Olusi said.
In collaboration with the Manufacturers Association of Nigeria (MAN), BoI is ensuring transparency in the loan process by validating all loan applicants to guarantee that the beneficiaries are legitimate manufacturers. The funds have already been allocated to successful applicants across all six geopolitical zones of the country, with disbursements underway.
This development follows Vice President Kashim Shettima’s statement on October 5, 2023, reiterating the federal government’s commitment to supporting local manufacturers through the N75 billion fund. The initiative, aimed at boosting economic growth and industrial development, also includes support for 100,000 startups and MSMEs.
The loan disbursement process officially commenced on April 22, 2024, marking a significant step in the federal government’s efforts to strengthen Nigeria’s manufacturing sector and foster economic development.
