By Adewale Sanyaolu and Sampson Unamka
In a bid to lift Nigerians and Micro Small and Medium Enterprises (MSMES) out of poverty, the Bank of Industry (BoI) at the weekend, presented cheques worth Two billion naira to three Microfinance Banks (MFBs) under its Bottom of Pyramid (BOP) scheme.
The three MFBs included, LAPO Microfinance Bank which got one billion Naira, while Fortis MFB and Lotus Capital Limited got N500 million each respectively.
Acting Managing Director, BoI, Mr. Waheed Olagunju, while speaking at the cheque presentation ceremony, said the BOP scheme was an on-lending initiative using the services of microfinance banks as channels for credit delivery to the under-served and under-banked entrepreneurs.
According to him, the scheme is designed to leverage the spread and penetration of the participating financial institutions in all parts of the country in order to stimulate economic activity within the critical mass at the BOP.
“We also decided to work with microfinance banks because lending to micro enterprises requires special skills that the MFBs have acquired over time,” he said.
He said the bank had previously disbursed N1.1 billion to 11 microfinance banks under the scheme, adding that the inclusion of the three MFBs will bring the number of such partnerships to 14 with total disbursement standing at N3.1 billion.
“We also have 9 approvals for other 9 other MFB’s in the sum of N1.13 billion currently undergoing the disbursement process”, said Olagunju.
He said the scheme aligns with the employment and wealth creation objectives of the National Enterprise Development Programme (NEDEP) of the Federal Government and will further enable BoI achieve its core mandate of industrialization by providing finance for the economically active.
The Bol boss said activities to be financed included; agriculture, light manufacturing, food products, beverages, solid minerals, services and artisanal activities among others. “It is our candid desire to ensure that MFB’s and other financial institutions in every part of the country benefit from the BOP scheme through aggressive marketing drive and sensitization campaign. This will further support the Federal Government’s job and wealth creation agenda”, said Olagunju.
He, however, urged the banks to utilise the partnership and opportunity to lift Nigerians and Small Medium Enterprises(SMEs) out of poverty.
On her part, Managing Director, Lotus Capital Limited, Mrs Hajara Adeola, said the partnership would boost economic activities and lead the country out of recession.
Also, Managing Director, LAPO MFB, Mr Godwin Ehigiamusoe, said economic revitalisation would take place if a larger number of citizens at the bottom of the ladder were engaged.
He noted that the partnership would enhance productivity of the Micro Small and Medium Enterprises (MSMEs) sector while ensuring their contribution to the nation’s Gross Domestic Product (GDP).