BoI Gives Out N16bn Loan to 68 Enterprises in Kano
The Managing director of Bank of Industry BOI ) Mr, Rasheed Olaoluwa has said that the bank has provided direct loans in excess of N16.0 billion to 68 enterprises in Kano State.
Olaoluwa, who made this statement on Wednesday at the official opening of Kano office of the bank said the BOI and the Kano State Government partnered under a Memorandum of Understanding (MOU) that was executed in June 2013, to set up a Micro, Small and Medium Enterprise (MSME) Development Fund in the sum of N2.0 billion.
He said, the amount was to be contributed by both parties in equal amounts of N1.0 billion each, dedicated to the provision of financial assistance for SMEs in Kano State.
He said the Kano State Government has so far released the first tranche of its contribution in the sum of N250.0 million, which was matched in equal amount by BOI.
According to him, in implementing the matching fund partnership, BOI received 311 loan applications amounting to N3.58 billion through the Kano State Ministry of Commerce, Industry, Cooperatives and Tourism, out of which, 167 loans totalingbN499.1 million have been approved.
He noted that in terms of developmental impact, 595 direct and 425 indirect jobs have been created thus far.
The Managing Director added that the BOI’s partnership with Kano State transcends financial intervention, adding that the Bank has worked assiduously to identify small and medium clusters in Kano State with the aim of extending financial support to the entrepreneurs operating therein.
According to him, in consonance without Mission Statement: “To transform Nigeria’s industrial sector by providing financial and business support services to enterprises”,accredited 122 Business Development Service Providers (BDSPs) nationwide in November 2014.
He pointed out that of this number, 28 have national coverage, while 14 specifically cover the North West geopolitical zone of the country.
“The BDSPs are to assist entrepreneurs package bankable loan proposals that have a high probability of loan approval, as well as provide post-finance services such as capacity building, hand-holding and mentorship for the entrepreneurs with the objective of ensuring sustained growth of their businesses”.
In the same vein, the Bank is currently partnering 10 SME-friendly banks to provide working capital for BOI customers at a negotiated interest rate of Monetary Policy Rate (MPR) + 6per cent, while the current MPR of 13per cent, the applicable interest rate is 19per cent per annum.
He explained that with BOI’s presence in the historic city of Kano, we believe the developmental impact of the Bank will be greatly enhancing support of the real sector and also complement the State Government’s socio-economic development objectives.
In his address on behalf of Kano state governor, the state deputy, governor Professor Hafiz Abubakar, noted that the BOI presence in the state would go along way in assisting the teeming population in their business through pave way for them to secure loans without hindrances
Ganduje who disclosed that the state government would soon completed the ongoing independent power projects embarked upon noting that most of the equipment needed for its take off have arrived the country .
He then noted about 35 mega electricity that would be generated by the independent power project (IPP) would be of immense contribution to revitalized most of industries that have collapsed and thus in turn provide job opportunity to thousands of people roaming the streets.
Ganduje then called on business enterprises to patronized the BOI for necessary move to secure which would help their industries to excel.