Jaiz Bank announced that it has secured a 3 billion naira credit facility from the Bank of Industry (BoI) to lend to the Micro, Small and Medium Enterprises (MSMEs) operating in Nigeria.
Presenting the cheque to Jaiz Bank, BoI Executive Director, SMEs, Mr. Shekarau Omar expressed confidence at the ability of the non-interest bank to effectively disburse the funds to target groups.
The Managing Director of Jaiz Bank, Mr. Hassan Usman, who also spoke at the signing ceremony, said small businesses will be able to access the funds to grow their businesses and create wealth.
According to Usman, “fundamental to the vision and mission of Jaiz Bank is to create wealth for MSMEs. I want to assure you that maximum benefits will go to the stakeholders. We have already started a pilot financial inclusion drive. We are also going to use agency banking to reach those people in places where we are not physically present. We are also intervening to provide financing to women group”.
Omar, who spoke on behalf of the Bank of Industry said “we are ready to participate with institutions that are ready to support and develop areas that needed support. We are comfortable this 3 billion naira will help Nigeria grow”. He said BoI is already in the partnership with 16 different financial institutions, stressing that the sum of 3.8 billion naira had so far been disbursed under the initiative.
Omar said “with this 3 billion naira we are disbursing to Jaiz Bank today, it means this project would have risen to over 6 billion naira, we also have in our online 9 different institutions we are partnering with, we hope to disburse another 5.3 billion naira to them between now and end of this quarter”.
He said BoI disbursement portfolio was expected to grow to 12 billion naira from 6.8 billion naira by the end of the intervention scheme. The Executive Director noted that the idea was to devise the most effective means of delivering affordable finance to businesses which are unable to access funding from conventional means.
Omar encouraged Jaiz Bank to come forward for another trance of disbursement as soon as it is able to properly managed the initial 3 billion naira.