BoI’s loan to Kaduna MSMEs hits N47bn - BLUE VOICE RADIO

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BoI’s loan to Kaduna MSMEs hits N47bn

BoI’s loan to Kaduna MSMEs hits N47bn

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By Victoria Ojeme
THE Bank of Industry (BoI) has disbursed loan in excess of N47billion to
support entrepreneurs in Kaduna State in the micro, small and medium
enterprises, MSMEs, category, Managing Director of the bank, Mr. Olukayode
Pitan, has said. Pitan, who disclosed this at a meeting with the Kaduna State
governor, Mallam Nasir el-Rufai, added that the loan facility engendered over
84,500 direct and indirect jobs.
He said the funds spanned across various sectors of the state’s economy
such as Argo-business, petrochemical and gas, metal fabrication,
infrastructure and solid minerals.
The BoI boss also named business concerns in the state that have benefitted
from the bank loan facility to include, United Nigerian Textiles Plc, Special
Sunrise Plastic, Ashwarina Genera Merchants Lmt, Chellco Industries Limited,
Sundavic Metal Construction, and Mouka Foam Ltd.He said,
Funding windows
“Collectively, as at 31st August, 2017, the bank had provided loans in excess
of N47billion to large, SMEs and MSMEs across the state with over 84,500
direct and indirect jobs created under the different funding windows such as
BoI fund, BoI/KDSG Matching fund(KADSTEP), BoI-Dangote fund, GEEP
(Market Moni), FGN MSME fund, YES-P fund and GEF fund.
“Briefing the governor on the loan disbursement to entrepreneurs under the
Kaduna Start up Entrepreneurship Programme, KADSTED, the bank’s CEO
noted that utilization of the fund had progressively improved.
According to him, while utilization stood at N16,347,320 million in Octomber
2016, it rose to N253,781,365milliom in August 2017, representing 1453 per
cent increment.
He, however, lamented that the programme had not reached the expected
pace due to the inability of graduates under the KADSTEP programme to
meet up with the pre-disbursement conditions.Under the scheme, applicants
are expected to deposit a mandatory 5 per cent of the loan value as cash
collateral.
It was initially pegged at 10 per cent, but was later reviewed to 5 per cent
when it was discovered that some of the beneficiaries could not afford
it.Pitan called on the governor to intervene to further vary the collateral
condition to enable the fund achieve its desired objective of raving up
activities in the real sector of the state.
“The bank as usual, will continue to liaise with the office of the senior
adviser/counsellor to His Excellency on Investment on ways to further review
the pre-conditions which will pave way to clear the huge outstanding
approvals, thereby fast tracking the disbursement,” he said.
The CEO of the bank also expressed his appreciation for the approval
received from the governor for the expansion of the loan coverage, which,
according to him, now covers other SMEs.Pitan noted that the increase in the
utilization of the fund has enabled the bank to source proposal worth
N335.5million in the first instance, adding that it had commenced the
appraisal process.
Responding, governor el-Rufai, thank the bank for its various interventions in
the state, stressing that these had helped in increasing the tempo of activities
in the real sector of the state’s economy.
He attributed the slow pace of KADSTEP to the attitude of the people who
often see government money as a political largesse.
In order to address that, he assured the bank delegation that efforts were in
the offing to conduct an enlightenment programme in the state to educate
the people to imbibe the culture of loan repayment.
The bank’s delegation, headed by its managing director, also seized the
opportunity of the working visit to the state to tour some of the business
concerns being sponsored by the bank.Some of the factory visited included:
Chellco Industries Limited, Special Sunrise Plastic, Sundavic Metal
Construction, Mouka Limited, United Nigerian Textiles, and Supertex Limited.
Addressing journalists at the end of the inspection, Pitan noted that although
some of the factories were yet to record 100 per cent capacity utilization,
they were on the way to fully recovery.

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