BOI Disburses N602m to SMEs

07 May 2012

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Bank of Industry Headquarters

By  James Sowole  

The Bank of Industry (BOI) and the Ondo State Government said no less than N602 million had been disbursed as loan to Small and Medium Enterprises (SMEs) from the N2 billion fund sponsored by the government and the bank.

Equally, approval had been given for disbursement of another N428 million to promoters of SMEs within the next 30 days.

The State Commissioner for Commerce and Industry, Mr. Tayo Akinjomo, and the Zonal Manager of the BOI, Mr. Kola Adewole, made the clarification while reacting to the complaints by some entrepreneurs that stringent conditionality put in place by the bank prevented them from accessing the fund two years after.

The duo, flanked by some officials of the bank and the ministry, said not less than 149 cooperatives and four new medium enterprises had benefitted from the fund meant to improve production of the enterprise.

Akinjomo said the government and the bank had to put some monitoring measures in place so that the money does not become another national cake.

He explained that he and some officials of the ministry had even visited industries of some the beneficiaries, saying that it was true that not everybody can access the money because it was meant to improve the firm’s production and generate better income.

The commissioner said the complainants ought to know that the risk management of any bank does not joke with the issue of repayment; hence the need for monitoring. He said the government was committed to the industrialisation of the state in order to generate employment for the people.

The bank zonal manager said what was required of the would-be beneficiaries was the evidence of legal documentation for the SME while the small credit beneficiaries only need to provide 10 per cent of the money required.

Tags: Business, Nigeria, Featured, Bank of Industry

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