BoI, Kaduna Seal N1bn Deal on SME Financing

The Bank of Industry has sealed a N1bn Entrepreneurial Development Fund agreement with the government of Kaduna to boost the activities of small scale businesses in the state.

The agreement brings the total loan portfolio of the bank to Small and Medium Scale Enterprises in Kaduna state to N23.6bn.

Rasheed Olaoluwa, managing director of the Bank, confirmed this during the signing of the agreement with the government of Kaduna State.

Based on the term of the agreement, the Kaduna State Government would raise the sum of N500m, while BoI would provide the balance of N500m.

The BoI boss said the fund, which will be given as soft loans, is aimed at empowering small businesses in the state to enable them add value to the agricultural products in the state.

This, according to him, would help reduce the huge post-harvest losses recorded by farmers due to absence of crop preservation facilities.

Olaoluwa, added that the funds which would be given out as loans to SMEs would help to boost commercial activities in the state thus creating jobs, reducing poverty and ensuring inclusive growth

He said, “This epoch-making occasion marks an important milestone in the annals of the socio-economic development of Kaduna State.

“The synergistic relationship that has evolved between your state and the BoI will provide the platform for the rapid financial inclusion of Kaduna State’s bottom of the pyramid and thereby accelerate the economic growth of the state.

“It is gratifying to note that towards actualising the vision for the economic transformation of Kaduna State, the Executive Governor, Dr. Mukhtar Yero approved a contribution of N500m which has been matched in like sum by the BoI, towards the establishment of a N1bn Entrepreneurial Development Fund.

“This pool of funds will be provided as loans to entrepreneurs in Kaduna State. By this gesture, Kaduna State has joined the league of dynamic states in other parts of the country that are currently collaborating with the BoI in entrepreneurial development under the states’ Matching Fund Scheme.”

He expressed the commitment of the bank to continue to help small businesses not only in the state, but also across the 36 states of the federation, noting that this was the only viable way to ensure inclusive growth.

Also speaking at the event, Yero explained that the deal was needed to revive some of the moribund industries in the state.

He lamented that some commercial banks were not interested in providing funds for small businesses, noting that with the pact with BoI, SMEs in the state would begin to see a significant improvement in access to financing.