News in brief:
– Nigeria’s Bank of Industry has raised the loan limit for MSMEs to ₦5 million, offering farmers access to affordable credit at a 9% interest rate.
– This initiative enables farmers to invest in essential resources, boost productivity, and contribute to economic growth.
The Bank of Industry (BoI) has announced raising the limit for single-digit loans available to micro, small, and medium enterprises (MSMEs) to ₦5 million from ₦1 million.
This loan will come from the ₦75 billion earmarked by President Bola Tinubu for MSMEs out of the ₦200 billion business intervention fund.
Nigerian farmers can benefit from this 9% interest rate loan if they qualify. They also do not need to go through intermediates or any agency to apply, as Olasupo Olusi, managing director and chief executive officer of BoI, revealed.
The bank has an online registration process that requires just four steps:
- Submit Application: Fill out the online application form with the required information.
- Document Verification: Provide the necessary documents to support your application.
- Loan Approval: A team will review your application and provide a decision.
- Disbursement: Once approved, the bank will disburse the funds to your designated account.
All applicants are required to have a business registration number and name, which involves a certification from the Corporate Affairs Commission (CAC).
In October 2024, the development institution had told business owners that the limit for loans was ₦1 million. At an event organised in collaboration with the Finance and Industry Ministry, Umar Shekarau, executive director of MSMEs at BoI, representing Olusi, emphasised that the funding programme would generate thousands of direct and indirect jobs. At the time, more than 800,000 Nigerians were said to have benefitted from the funding exercise.
With a tenure of three years, a ₦5 million loan can go a long way in addressing difficulties that Nigerian farmers face, especially those related to financing.
They can invest in essential resources such as modern equipment, quality seeds, fertilisers, and irrigation systems. These investments can enhance productivity and efficiency.
Furthermore, the three-year repayment tenure provides flexibility, ensuring farmers can manage their finances sustainably while improving their livelihoods because farming cycles can be as long as six months or even two years for some crops.
Improved access to funding allows farmers to expand their businesses, hire more labour, and contribute to the agricultural value chain. This boost in productivity can lead to increased food supply, helping to combat food insecurity while fostering economic growth in rural areas.
