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BoI disburses N700m to MSMEs in Taraba

By Femi Adekoya
05 February 2016   |   2:21 am
To drive industrial and economic development, as well job creation in Taraba State, the Bank of Industry (BoI) has disbursed N700 million for on-lending to entrepreneurs in the state. According to the Bank, the funds, which were pulled together by the state government and BoI under its matching fund scheme following the execution of a…

SMEs

To drive industrial and economic development, as well job creation in Taraba State, the Bank of Industry (BoI) has disbursed N700 million for on-lending to entrepreneurs in the state.

According to the Bank, the funds, which were pulled together by the state government and BoI under its matching fund scheme following the execution of a Memorandum of Understanding for the establishment of a N700 million Micro, Small and Medium Enterprise Development Fund, will boost economic activities and curtail unemployment.

Managing Director, Bank of Industry, Rasheed Olaoluwa, while speaking at the cheque presentation ceremony to beneficiaries under the scheme, said a large number of the loan applications were deficient in either documentation or by virtue of line of businesses not covered by the Bank.

He noted that before the advent of the matching fund scheme in the state, the Bank had invested over N90.6 million of BoI Funds in support of genuine businesses, adding that some beneficiaries include Al-Umalau Nig. Ltd, Bombillac Integrated Farms, Tsoro Women MPCS, Mal Kings MPCS, Wainabe MPCS, Master Bakers’ projects under the Cassava Bread Fund and a core of other businesses.

“With the state government’s intervention, a total of 130 projects cut across all local government areas in the state were realised. Amounts were set for each beneficiary between N1.5 million and N1.7 million but not exceeding a total of N215 million to be processed wholly from the state government’s portion of the fund.

“Out of this number, 75 projects doing various aspects of processing and value addition totalling about N118.97 million were approved by the bank. It is however important to point out that only 52 of the 75 beneficiaries who got approval accepted the Offers.

“Out of the 52 who have accepted the loan offers, 40 cooperatives have been processed for disbursement out of which 18 benefitting cooperatives that are ready for issuance today would be issued with their respective cheques for the acquisition of raw materials to enhance their productive activities. The remaining 22 cooperatives will also be receiving their cheques in a week’s time as their documentations have been fully processed”, Olaoluwa explained.

The BoI boss added that the bank has embarked on several initiatives to make access to finance easier for small businesses.

“MSMEs are confronted with low level of financial support because their business plans and loan requests are poorly packaged and non-bankable. In order to address these challenges, BoI has appointed 200 Business Development Service Providers (BDSPs) in three categories of state, zonal and national coverage to package loan proposals/business plans for the bank’s prospective customers as well as provide post-finance services such as mentorship, handholding, financial advice and inculcation of best practices.

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