Timely credit delivery to SMEs through BDSPs

To address the challenge of access to credit for Small and Medium  (SMEs) and to hasten the credit delivery process, the Bank of  Industry (BOI) has recently signed service agreements, engaging 122 Business Development Service Providers (BDSPs).

According to a press statement by Clement Ashley Consulting, one of the 122 Business Development Service Providers, the agreement BOI has entered into is to increase SMEs’ capacity to apply for and secure financing from the Bank.

According to the press statement, Rasheed Olaoluwa, managing director/CEO of the Bank of Industry stated at the agreement signing event that the move had become imperative because even though SMEs  account for over 90 percent of the companies in Nigeria and for half of the nation’s GDP, and provides employment for more than 30 percentof its populace, many SMEs have not been able to attract funding. Olaoluwa attributed this to poorly packaged and non-bankable business plans and proposals submitted to secure funds.

He added that this strategic partnership with the BDSPs was in furtherance of the Bank’s core mandate of providing long-term financial and business support services to large, medium and small projects”. He also pointed out that this would also help the Bank fulfill its obligations towards the success of the National Enterprise Development Programme (NEDEP), of which the Bank is a key stakeholder.

Olaoluwa revealed that the selection process that brought about the 122 BDSP firms was rigorous and that the selected companies were placed in three categories, based on their capacity and preferred areas of coverage.

BDSPs with a national coverage totalled 28, regional coverage BDSPs were 74 (of which Clement Ashley Consulting is one of the 74, and covering the South West, South South and South East zones), while state-focused BDSPs were 20 in number. “

OLUYINKA ALAWODE