BoI Plans To Transformed SMEs Into Better-Structured Entities

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From Benjamin Ameh, Lagos

 

“SMEs will be in a position to live up to the expectation as a key vehicle for job and wealth creation”, the managing director/chief executive, Bank of Industry Limited, Rasheed Olaoluwa.

 

The Managing Director/Chief Executive, Bank of Industry Limited, Rasheed Olaoluwa in a keynote address disclosed that BOI is currently partnering with research institutions in the country in order to expose SMEs to modern indigenous and innovative technological developments for greater efficiency and competitiveness. The research institutes include the Federal Institute of Industrial Research, Oshodi (FIIRO), National Agency for Science and Engineering Infrastructure (NASENI), Project Development Institute (PRODA), etc.

 

Olaoluwa stated this on the occasion of the 2015 Financial Correspondents Association of Nigeria annual conference with theme: “banks and SMES in Nigeria: prospects, challenges and success” held on Saturday, september19, 2015 at the peninsular resort, lekki, Lagos
The managing director keynote address was delivered by Abdul Ganiu Muhammed, a General Manager in the Bank of Industry said BOI has commenced the use of Product Programs in its lending to SMEs. The advantage of this strategy is that it is product specific and it focuses mainly on the Business Model of the SME rather than on collateral. The primary source of loan repayment is from the business’ cash flow.

 

In this regard, he said, the Bank has identified 35 SME Clusters in the country to which lending will be driven by Product Programs. Some of the Cluster Product Programs that are so far being implemented by the Bank include: Cottage Agro Processing (CAP) Fund for Agro-processors. Nolly Fund for the Creative Industry (Nollywood) and Fashion Fund for the Fashion cluster.

hadiza badamasi olaosebikan-BoIHadiza Badamasi Olasebikan, Head, Corporate Communications, BoI

According to the statement BoI recently launched five (5) SME-centric digital offerings. These are platforms to help applicants easy access through. They are, SME Mobile App to provide members of the public, especially entrepreneurs, easy access to information about the key activities and products of the Bank, as well as, how to avail themselves of its services.

SME Accounting Application (SAAPP) Software to address the problem of poor record keeping. SAAPP provides SMEs with a user friendly and simplified accounting tool that does not require formal accounting knowledge by the entrepreneur. This way, SMEs will be transformed into better-structured entities applying best practices in their operations. This application has been deployed online and is obtainable at a cost of N20,000.

Online Loan Application Portal created for the convenience of BOI’s prospective SME customers to enable them apply for loans online without leaving the comfort of their homes or offices. It has the advantage of shortening the loan processing Turn-Around-Time (TAT) of the Bank. Online Loan Application Tracking Portal to enable customers obtain online, real time updates on loan requests submitted to the Bank through an innovative loan status tracker on the Bank’s website.

SME Customer Portal which is a platform that that addresses the access to market challenges of SMEs as it showcases their products thereby providing business-to-business (B2B) linkage opportunities among SMEs as well as between SMEs and their key partners such as suppliers, distributors, Large Enterprise off-takers, etc
Olaoluwa noted that from the foregoing, it is evident that SMEs in Nigeria have bright prospects. However, he said, concerted efforts must be made by all stakeholders: Government, the Organised Private Sector, the Financial Institutions and the SMEs themselves to play their respective roles in pursuit of sustainable growth for the SMEs. This way, SMEs will be in a position to live up to the expectation as a key vehicle for job and wealth creation, he added.
“I wish you a most successful and fruitful discourse at this conference. It is my hope that at the end of the two-day event, there will be a clearer understanding of the roles of the various stakeholders in the SME ecosystem will be better equipped to carry out incisive analysis of the dynamics of the SME sector and also disseminate qualitative information to the public.”


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