MAN, BoI canvass proper financing for business growth
The Manufacturers Association of Nigeria (MAN) and Bank of Industry (BoI) have stressed the imperative of effective financing of businesses in order to increase the nation’s Gross Domestic Products (GDP), provide employment opportunities and increase productivity and profitability.
Speaking at the 10th Business Luncheon of MAN, Ogun State Branch, the State’s Chairman, Wale Adegbite, highlighted the importance of proper business financing to the establishment and continued productivity of any business concern.
According to him, it is the live-wire that ensures the wheel of operations keep moving, even in harsh economic climates.Speaking on the theme: ‘Business Financing in Nigeria: The Bank of Industry Option’, he noted that real GDP growth in the manufacturing sector in the 3rd quarter of 2017 declined by 2.85% (year-on-year),adding that these figures are low when compared to the contribution of manufacturing to GDP in comparable countries like India, Indonesia, South Africa and Egypt where the ratios are: 17%, 21%, 13% and 17% respectively.’This gap is one of the areas BOI was set up to fill through its various schemes targeted at manufacturers’, he said.
Such schemes include the N235 billion intervention fund for refinancing and restructuring of banks’ loans to the manufacturing sector which is aimed at, among other objectives, ‘fast tracking the development of the manufacturing of the Nigerian economy by improving access to credit by manufactures.’ He stated.
In his speech, BoI’s Chief Executive, Kayode Pitan noted that BoI offers tailor-made financial products for key products clusters within the SME sector at 10% interest rate per annum.
Represented by Ogun State Manager, BoI, he stated that ‘BOI and Ogun State have partnered to enable the exploitation of natural resources.According to him, in 2011, BOI and Ogun State government signed an MOU on a matching fund of N1 billion (N500 million each). To date, over 100 entrepreneurs have been supported with N685 million while creating an estimated 4,500 jobs directly or indirectly.’
He also listed some of the organizations packages such as: Youth Ignite Program (₦10bn Fund targeted at helping either young aspiring entrepreneurs to actualize their business ideas or existing entrepreneurs expand their ventures); Youth Entrepreneurship Support Programme (₦10bn Fund to support Nigerian youth of between the ages of 18 and 35 towards becoming entrepreneurs); Graduate Entrepreneurship Fund (₦2bn Fund to support fresh higher institutions graduates in entrepreneurship in partnership with National Youth Service Corps;) Market Moni/ GEEP (₦140bn fund offering 0% interest rate to informal micro enterprises including artisans, market associations, women cooperatives, trade associations & trade cooperatives); Bottom of Pyramid (₦3bn on-lending scheme through MFBs to support under-banked & under-serviced microenterprises with 12% interest rate per annum to MFBs and Maximum of 18% to microenterprises.)
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