The Bank of Industry (BOI) has reaffirmed commitment to supporting Micro, Small and Medium Enterprises (MSMEs), describing the sector as the backbone of Nigeria’s economic growth, job creation and industrial development.

The Kwara State Manager of the BOI, Femi Amos Ashaolu told newsmen in Ilorin, on Wednesday, during a facility tour of Qusymax Nig. Ltd farm at Asa Dam.

Speaking on the Bank’s interventions and impact on businesses, Ashaolu said the relevance of MSMEs to the nation’s economy cannot be overemphasised, noting that “the sector remains critical to employment generation, industrialisation, local production and a leeway to the country’s independence on imported goods”.

According to him, MSMEs occupy strategic position in the nation’s economic value chain, which is why the BOI continues to prioritise financing and capacity support for operators across various sectors.

“The relationship between the Bank of Industry and MSMEs can never be overemphasised because this is where the impact is felt most. When you look at employment, industrialisation, production and how businesses help reduce dependence on imported goods, you will see that MSMEs are central to economic development,” he said.

He noted that the country has a large and growing number of MSMEs, citing data from the Corporate Affairs Commission (CAC) as prove to the increasing business registrations nationwide.

“We have a lot of MSMEs across the country. We deal strictly with registered businesses, not individuals, and the records available through the CAC indicate that many enterprises are actively operating within the economy,” he added.

Speaking on the Bank’s loan portfolio in Kwara State, the manager disclosed that BOI plans approximately N3 billion disbursements to MSMEs and other businesses.

“This year, it has been a bit slow, but we have projects worth about N3 billion in Kwara State currently in the pipeline awaiting disbursement,” he said.

The BOI boss identified loan repayment as a major challenge confronting development finance institutions, stressing that loan recovery remains essential for sustaining intervention programmes and enabling other businesses to access funding.

He noted that while some beneficiaries encounter genuine business challenges that affect repayment, others mistakenly view government-backed loans as grants and therefore fail to honour their repayment obligations.

“The loan is meant to be repaid so that other businesses can benefit from it. When a beneficiary refuses to repay, it deprives another entrepreneur of the opportunity to access funding. Some have genuine challenges, which is why we monitor closely and, where necessary, restructure facilities to give them breathing space. Unfortunately, there are others who simply believe that because the funds originated from government, they do not have to repay, and that remains a major challenge,” he stated.

Also, the Chief Executive Officer (CEO) of Qusymax Nig Ltd, Kazeem Opeyemi encouraged fresh and unengaged graduates to wholly tap the opportunities offered by the BOI for a fresh beginning, describing the bank as his personal saving grace in 2017.