The Nigerian Content Board offered 800 million Naira while the Bank of Industry offered $750 million from international banks to manufacturers operating in Nigeria.
Kayode Pitan, Managing Director of BOI, who was represented by Joseph Babatunde, the General Manager of Large Enterprise, noted that the Bank of Industry offered the fund to support emerging industries such as creative arts, renewable energy, and biogas. Unlike conventional banks, the loans are offered with single digit interest rates and have a long gestation period.
Babatunde urged local operators in agro-porcessing, solid minerals and movies to harness the low interest loans to grow their business. Small and Medium Enterprises contribute over 50 percent to the Gross Domestic Product and should be supported for the Nigerian economy to grow.
According to Nairametrics, the Bank of Industry had also provided 400 million Naira to over 300 members of the Leather Products Manufacturers Association of Abia State (LEPMAAS). The fund which would be made available quarterly for local manufacturers to promote locally made products, was targeted at over 150,000 artisans.
The scheme is designed to help beneficiaries access funds for procurement of materials to enable expansion and to improve production which is expected to boost import substitution.
The Bank of Industry’s quest to fulfil its mandate of providing financial assistance for the establishment and expansion of large, medium and small projects, was also aimed at fashion entrepreneurs back in June 2018.
The 1 billion Naira fashion fund was designed to benefit those involved in the production and marketing of fashion items such as clothes, handbags, shoes and jewellery. The initiative was also expected to support projects that improve financial literacy and industrial entrepreneurship for retailers, wholesalers, and distributors in the fashion industry.