On Tuesday, the Office of the Vice President announced plans to initiate loan disbursement to Micro, Small, and Medium-sized Enterprises (MSMEs) in partnership with the Bank of Industry starting in January 2024.
A statement signed by Temitola Adekunle-Johnson, the Senior Special Assistant to the President on Job Creation & MSMEs, revealed that “the loans totaling about N75bn will be given to small businesses nationwide at an interest rate of 9 per cent”.
Titled ‘BOI-FG single digit loans for MSMEs to commence Jan 2024,’ the statement highlighted the joint efforts between the Federal Government and the Bank of Industry to utilize existing platforms for extending financial support to small businesses, particularly focusing on women and youths.
Adekunle-Johnson emphasized the collaboration between the government and stakeholders from both public and private sectors, emphasizing the substantial aid provided to MSMEs in the form of grants and loans in recent times.
Additionally, the Presidential aide cited the recent increase in the Access Bank loan scheme for MSMEs, which saw a revision from N30 billion to N50 billion, as a testament to the ongoing commitment towards supporting small businesses.
“The upward review, according to the bank, is to increase the number of beneficiaries of the bank’s loan scheme and impact more livelihoods,” he stated.
Tuesday’s announcement comes six months after Vice President Kashim Shettima assured Nigerian small business owners that the Tinubu-led administration would hasten access to single-digit loans for them within the shortest time feasible.
“The government is working urgently to ensure quick access to single-digit loans for Nigerian small businesses within the shortest time possible,” Shettima had said in his message to mark the 2023 World Micro Small and Medium Enterprises Day on June 27, 2023.
The VP had affirmed that the FG recognises the vital role that Micro, Small, and Medium Enterprises play in driving economic growth, creating jobs, and promoting innovation.
He said the administration would provide support, fostering an enabling environment and improving access to finance for MSMEs.
Therefore, Shettima urged “all stakeholders to come together to champion the growth and success of MSMEs to achieve sustainable development for all, while we also recognize the plethora of issues that face MSMEs as a result of the subsidy removal.”
“However, the government is working urgently to ensure quick access to single-digit loans for Nigerian small businesses within the shortest time possible,” he added.
