Carpenters, Others to Benefit From BoI’s N4.14bn Loan

AfDBAfrican Development Bank (AfDB)
  • Carpenters, Others to Benefit From BoI’s N4.14bn Loan

Among the people scheduled to benefit from a new loan scheme set up by the Bank of Industry this year are artisans such as cobblers, tailors, carpenters, bakers, bread sellers as well as those involved in small scale agriculture, solid minerals mining and the services sector.

The bank disclosed this on Friday while presenting cheques to three microfinance banks, Fortis, Lapo and Lotus Capital, for onward lending to the beneficiaries at the bottom of the pyramid of economic activities in the country.

According to the Acting Managing Director, BoI, Mr. Waheed Olagunju, the scheme tagged: ‘Bottom of the Pyramid’, is an on-lending scheme using services of the MFBs and other acceptable financial institutions as vehicle for credit delivery to the under-served and under-banked micro-entrepreneurs.

He said, “The BoP scheme is essentially aimed at poverty reduction through job and wealth creation focusing on the rural micro-enterprise operators with a view to extending financial inclusion to them.

“The scheme is designed to leverage on the spread and penetration of the participating financial institutions in all parts of the country to stimulate economic activity within the critical mass at the bottom of the pyramid.”

The beneficiaries, according to the bank, will be chosen based on the comparative advantages of the various states of the federation, including the Federal Capital Territory, adding, “Activities to be financed include but are not limited to value addition in sectors like agriculture, light manufacturing, food products (snacks, bakeries, etc.), beverages, solid minerals, services, artisanal activities like wood and metal works, tailoring, shoe making, etc.”

Under the scheme, Lapo got N1bn; Fortis, N500m; and Lotus Capital, N500m, for on-lending to their customers.

Olagunju stated that the bank had earlier disbursed N1.1bn under the scheme and also had approvals for nine other MFBs in the sum of N1.13bn currently undergoing disbursement.

“It is our candid desire to ensure that the MFBs and other financial institutions in all parts of the federation benefit from the BoP scheme through aggressive marketing drive and sensitisation campaign. This will give further impetus to the Federal Government’s job and wealth creation agenda,” he said.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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