BoI Disburses N3.1bn To 14 MFBs

BOI ACTING BOSS WAHEED OLAGUNJU

By Oluwafunke Ishola

The Bank of Industry (BoI) says it disbursed N3.1 billion to 14 microfice banks under its Bottom of Pyramid (BOP) scheme.

The scheme is among others designed to enhance the financial inclusion of micro entrepreneurs in the country.

Mr Waheed Olagunju, the Acting Managing Director of the bank, made the disclosure at the presentation of cheques to LAPO Microfice Bank, Fortis Microfice Bank and Lotus Capital Ltd in Lagos on Friday.

The Bottom of Pyramid scheme is an on-lending initiative using the services of microfice banks as channels for credit delivery to the under-served and under-banked micro-entrepreneurs.

Olagunju presented a cheque each of one billion naira to LAPO Microfice Bank, N500 million to Fortis Microfice Bank and N500 million to Lotus Capital.

He stated that the bank had previously disbursed N1.1 billion to 11 microfice banks under the scheme.

As stated by him, the bank has approvals of N1.13 billion for nine other microfice banks presently undergoing disbursement process.

Olagunju stated BOP was designed to leverage on the spread and penetration of participating financial institutions across the country to stimulate economic activity among micro entrepreneurs.

“We also decided to work with microfice banks because lending to micro enterprises requires special skills that they have acquired,” Olagunju stated.

He stated the scheme was aimed at poverty reduction through job and wealth creation focusing on rural micro-enterprise operators with a view to extending financial inclusion to them.

The managing director stated that activities to be financed include agriculture, manufacturing, food products, beverages, solid minerals, services and artisanal activities.

Olagunju stated that the scheme aligns with government’s employment and wealth creation objectives of the National Enterprise Development Programme (NEDEP).

He urged the banks to utilise the partnership and opportunity to lift Nigerians out of poverty.

Mrs Hajara Adeola, Managing Director, Lotus Capital, stated that the partnership would boost economic activities and lead the country out of recession.

Mr Godwin Ehigiamusoe, Managing Director, LAPO Microfice Bank, stated that economic revitalisation would take place if large numbers of citizens at the bottom of the ladder were engaged.

He noted that the partnership would enhance productivity of the Micro, Small & Medium Enterprises sector while ensuring their contribution to the nation’s Gross Domestic Product.