Bank of Industry Bars Importers, Traders From Accessing Loan Facility: Seeks SMEs’ friendly banks

Bank of Industry Bars Importers, Traders From Accessing Loan Facility: Seeks SMEs’ friendly banks
Mr. Rasheed Olaoluwa

In a renewed bid to pursue its core function of industrialization, the Bank of Industry (BOI) has barred importers and traders from accessing credit facility from the bank. This is coming as the bank has also begun a survey of Small and Medium Enterprises (SMEs) friendly-commercial banks to partner for SME financing. The new Managing Director of BOI, Mr. Rasheed Olaoluwa who disclosed this in a chat with MMS Plus Weekly recently, noted that a lot of SMEs are not genuine as they engage in business activities that create bottlenecks for the industrialization efforts of the Federal Government. According to him, “in refocusing BOI, we will stop giving credits to importers and traders, and other businesses in service sector that do not add value to the economy. But we will be ever willing and ready to support SME companies that are into manufacturing and production.” Speaking recently when the National Executive Council members of the Nigerian Association of Small and Medium Enterprises (NASME) paid him a courtesy call in Lagos, Olaoluwa stated that BOI was taking a study of genuine SME friendly banks to partner on fund administration to SMEs. He explained that BOI would finance the equipment purchase while the commercial bank funds the working capital, adding that they were engaging some Business Support Service firms to facilitate loan application. They are to help the applicants repackage their loan application to increase their chances for credit, he said. The industrial development bank’s managing director told NASME members that they were working on setting up a Hall of Fame for SMEs to celebrate those who have done well. Earlier, the Deputy President (South) of NASME, Prince Degun Agboade who led the Council members called on BOI to earmark special funds for NASME members based on genuine needs and recommendations from the National Secretariat, “especially on the micro credit facilities which in most cases are often needed by SMEs to grow their businesses”. NASME sought the collaboration of BOI in building capacity among the SME operators and in effective facilitation of the Public Private Dialogue (PPD) which is a platform used by NASME to pursue developmental strides.

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