BoI targets to fund 1220 small-scale manufacturers in 12 months

Through the newly appointed Business Development Service Providers (BDSPs), the Bank of Industry (BoI) is targeting to finance 1220 small and medium scale players in the manufacturing and agro processing sectors.

The bank recently appointed 122 BDSPs across the states of the federation. To ensure wider reach, each of the 122 BDSPs has been given a target of bringing to the development bank’s table 10 successful applications from small- and medium- scale manufacturers who need funding to boost their business, Waheed Olagunju, executive director, small and medium enterprises, BoI, said.

“We have given these BDSPs a target of 10 successful applications in 12 months,” Olagunju said at this year’s Nigerian Association of Small and Medium Enterprises (NASME) annual meeting held in Lagos.

BDSPs were appointed by the bank to help SME players in the real sector in packaging loan applications. It is thus targeted at reducing high rejection of loan applications resulting from poorly packaged and non-bankable business plans.

The bank is no longer expecting rejection of applications, give the appointment of BDSPs who are professionals, Olagunju said, saying how a financial system is structured cannot be detached from the environment in which businesses operate.

Apart from Cottage Agro Processing (CAP) Fund launched in 2014, the development bank has five other funds it plans to unveil this year, he said, saying the fund will target economic sectors and demographic structures.

ODINAKA ANUDU