BoI Distributes N700m To MSMEs in Taraba
The funds were packaged together by the Bank of Industry (BoI) and state government 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, would boost economic activities and curtail unemployment.
In other to drive industrial and economic development, as well job creation in Taraba State, the BoI has expended N700 million for on-lending to entrepreneurs in the state.
Managing director, BoI, Rasheed Olaoluwa
Managing director, BoI, 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.
Olaoluwa 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.
“With the state government’s intervention, a total of 130 projects cut across all local government areas in the state was 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,” he said.
The BoI Boss further explained that out of the 52 who had accepted the loan offers, 40 cooperatives had 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 added that the bank had embarked on several initiatives to make access to finance easier for small businesses.