25.2 C
Lagos
Monday, July 22, 2024

SMEDAN, Bank of Industry seal pact on N1b matching Fund Loan Scheme

Must read

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the Bank of Industry (BoI) have signed a Memorandum of Agreement (MoA) for the pooling of N1billion to provide single digit interest rate to nano and micro enterprises in Nigeria. By this agreement signed in Abuja today (Wednesday), the two Federal Government-owned institutions are to deposit N500m a-piece into a Matching Fund Account to be managed by Bank of Industry.

Above: BoI Managing Director, Mr. Olasupo Olusi; SMEDAN Director-General, Mr. Charles Odii; Below: From Left: BoI Head of SME Banking, Mr. Obaro Osas; BoI Company Secretary; BoI Managing Director, Mr. Olasupo Olusi; SMEDAN Director-General, Mr. Charles Odii; SMEDAN Legal Adviser, Mrs. Julcit Onigbogi; SMEDAN Director (Agribusiness Development), Mr. Levi Anyikwa.

Speaking during the signing ceremony, the Managing Director of Bank of Industry, Mr. Olasupo Olusi, observed that the journey to signing of the agreement has been difficult and challenging. He, however, noted that the signing of the agreement marked the beginning of many more fruitful relationships between the two organizations.

In his own remarks, the Director-General of Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Mr. Charles Odii, commended the Managing Director of Bank of Industry and the Joint Technical Team that put the agreement together for the roles they played in making the relationship a reality. Mr. Odii described the signing of the agreement as “historic and a milestone” in the struggle to democratize access to finance for nano and micro enterprises in Nigeria.

Under the agreement, nano enterprises can access a maximum of N1.5million while micro enterprises can access a maximum of N2.5million. Loan applicants are required to provide two guarantors as part of the security for the loan. The tenor of the loan is 24 months. Working capital loan attracts 7.5% interest rate per annum while term loan attracts 5% interest rate per annum.

● By Levi Anyikwa, Director (Agribusiness Development & Extension Services Department), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN)

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles